In May 2007, Pantheon added another oil and natural gas exploration venture to its portfolio. Pantheon farmed-into a project in Iberville Parish, Louisiana, south of Baton Rouge. This venture is operated by Petro-Hunt LLC ("Petro-Hunt"), the oil and gas arm of the Hunt brothers, based in Dallas. PetroHunt has also farmed into this project with a 60% working interest ("WI").

Map of Louisiana

Location of Iberville Parish

The addition of the South Louisiana venture has a double benefit to the Company. First, Pantheon adds another high impact project to Pantheon's portfolio, reducing its dependence on the Padre Island Project. Secondly, there is the advantage of this venture providing lower risk targets. These should augment the existing and successful Project Wharton venture.

Detail of Iberville Parish Louisiana

Pantheon is participating with a 7.5% working interest ("WI"), carrying the farm-out companies for a 25% back-in after project payout ("BIAPPO"). All costs will be recovered by Pantheon prior to back-in by the farm-out partners and no revenues will be received by these companies until Pantheon attains payout. In the event of Pantheon electing to drill a second or subsequent well, the same terms apply. If such drilling occurs prior to payout then costs would accrue and the back-in deferred until all costs are recovered.

There is a four well commitment on this project. However, it is critical to note that Pantheon would be able to withdraw from the project at any time without penalty. In the event of a success with the first well and subsequent withdrawal from the project, i.e. without drilling the second well of the commitment, then Pantheon would have earned the acreage. This four well programme would combine higher reward prospects with low risk smaller prospects.

The farm-in covers two prospects. These have combined gross best estimate potential reserves (previously described as "P50 potential reserves") of 45 to 50 million barrels of oil equivalent ("mmboe").

The first well Nottoway Dome was scheduled to be a 15,000 feet test of a feature, unknown until a new 3D seismic survey was shot in 2005. The Well never reached total depth and was abandoned after the drill pipe was stuck for a second time. Petro Hunt LLC, the operator, is evaluating options for further drilling.

The White Castle Township prospect is located four miles east of the White Castle Dome field which has produced 95 mmbo and 125 bcf of natural gas. Although White Castle was discovered in 1929, there has been deeper exploration activity in 2006. One well was completed in an Oligocene section at 14,440 feet. It is flowing at 900 bopd and 2.5 mmcfd.

This prospect is also located one mile west of the Laurel Ridge field. Laurel Ridge is a salt feature discovered in 1944. Laurel Ridge was discovered by Humble Oil (ExxonMobil). In 2006, two new discoveries were made in the Miocene and Oligocene. Similar zones are expected to be present in the untested South Louisiana prospect.

The other prospect, Point Clair, is a Miocene development play. This was also identified as a result of a 3D seismic survey conducted in 2005. Point Clair was abandoned after finding non-commercial quantities of natural gas.