“The last six months of 2007 were exciting times for Pantheon Resources plc (“Pantheon”).  Pantheon participated in three discoveries with the two most significant being Wilson and Dunn Deep #2 both coming on stream during the period.  As a result, Pantheon’s gross working interest (“WI”) production rose from 80 thousand cubic feet a day (“mcfd”) in the April to June quarter 2007 to 1,100 mcfd average in the October to December quarter 2007.  Production in January and February averaged 995 thousand cubic feet a day.  In addition, Pantheon raised £900,000 through a placing of 1.5 million shares with institutional investors.  These proceeds, along with cash flow from production, provided additional working capital to contribute towards Pantheon’s current South Louisiana drilling Programme.

 With production and revenue imminent, the Board of Directors strengthened the Board   with the appointment of John Walmsley as a non-Executive Director, and commenced a formal executive search for a CEO.  John brings over 30 years experience in the UK oil and gas sector to his duties as a Board member.  In January 2008, I joined the Company as CEO.  I started my career as an engineer with Arco in 1969, however my oil and gas experience started from a very early age, as both my father and grand-father were independent oil and gas explorers and producers in Louisiana and Texas.  I ended my Arco career as President of Arco International Oil & Gas after several years running the Gulf Coast exploration and production operations.

Since I joined the company, Pantheon Resources has had a major disappointment.  On February 21 Petro-Hunt LLC (“Petro-Hunt”) abandoned the Fay Weil Ross et al #1 well on the Nottoway prospect. This was due to mechanical difficulties after the drill pipe stuck twice before reaching the final objectives. Petro Hunt will conduct a review of this well before making further recommendations.  

Petro-Hunt has now spudded the State Lease 19255 et al #1 well (the Point Clair prospect) which was part of the original Nottoway Dome farm-in. Point Clair has a best estimate reserve potential of nine million barrels oil equivalent (“mmboe”).  The last drilling report had this well drilling below 11,100 feet.  Petro-Hunt should reach total depth in early April on a trouble-free basis.  Pantheon has a 7.5% WI BPPO (“before project payout”) carrying the farmee company for 25% (pro-rata share) until project payout. Pantheon’s next high impact well, Bullseye (Pantheon 15% WI), should spud in April.  Bullseye will test two zones with a combined best estimate potential reserve of 19 mmboe. 

Since the start of 2008, Pantheon also elected not to participate in the Manzano Deep project on Padre Island. This was due to an increase in the risk profile and commercial terms compared with other opportunities.

On the personnel front Bob Rosenthal decide to stand down as a Board member and technical director. To bolster our technical expertise Pantheon has hired Ledgerock Energy Consulting to provide geologic and geophysical consulting to the company. Dr Ed Duncan is President and Technical Director of Ledgerock. Ed brings 30 years experience in the industry most recently as Vice President Exploration for Swift Energy Company.

In closing I want to assure shareholders that your Board is working hard to enhance shareholder value in these volatile market times. We are currently reviewing several high impact opportunities that, if successful, have the opportunity to move Pantheon Resources to another level.”