It has been a long time coming but PANR has finally been informed by the Operator, Vision Gas, of the intention to drill the Tyler County, Texas, KF1H well in Q4/2012 targeting the Austin Chalk formation and the deeper Woodbine section 500ft below. Separating the two plays is the Eagle Ford shale. The Austin Chalk is a gas play whereas the Woodbine sands is known to be condensate-rich. Working interest is 25%.
The first attempt hit mechanical problems after encountering high pressure from an unexpected rubble zone. The existence of this zone is good news as it is known from other wells in the area to exhibit very high porosity and permeability. So much so that the jv's technical expert has upgraded the expected reserves by 60%.
Interestingly, the well confirmed the extension of the Brookeland gas field, to the North, into the JV's Tyler County acreage. Andarko/Ergon have drilled 45 wells there, 44 of which were commercial. COS is 50% for the deeper Woodbine play.
The following presentation is somewhat out of date but gives an overview of what has been achieved in the surrounding area.
Low Risk: Vision acreage is surrounded by production & vertical wells drilled to the Woodbine or Buda
http://www.pantheonresources.com/investors/documents/EGMPresentationJune2008.pdf
PANR has already paid it's share of the cost of this well, had £2.4m in the bank at the end of 2011 and currently has a market cap at 11.5p of under £12m.
102m shares in issue - tightly held and not easy to buy in quantity.
Some very impressive numbers being bandied about - potential NPV10(per well, mean case) of $200m for a horizontal well, 17 possible wells on the acreage...
http://www.investegate.co.uk/Article.aspx?id=201204171333065035B
I hold.
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Pantheon Resources plc (Pantheon) is a United Kingdom-based company engaged in the business of exploration and production of oil and gas. The Company operates in two geographical segments: USA and Head Office. The Company operates in the United Kingdom through its parent undertaking and in the Unites States of America (USA) through subsidiary companies. The two Bullseye wells, Jumonville #1 and #2, this divestment of the Bullseye asset was thus prudent. The Company focuses on the Tyler County Venture. The Company’s subsidiaries include Hadrian Oil & Gas LLC, Agrippa LLC and Pantheon Oil & Gas LP. In September 2012, the Company sold 11.25% working interest in the Bullseye joint venture in South Louisiana, USA. more »
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This may be useful in attempting to put a value on Pantheon's net 8,000 acres on successfully confirming the existence of the Woodbine in Tyler County.
http://www.sunres.com.au/pdf/broker/SUR_Initiation%20of%20Coverage%20Sep12.pdf
"The recent and adjacent sale of the “PMO” field to Halcon Resources for $522m has invigorated significant interest in the Leon County Woodbine, the transaction implies a $/acre value of US$25,000/acre."
Pantheon's acreage is currently valued at about $3,400/acre having already confirmed the Brookeland field extension into Tyler County.
With a 50% COS for the Woodbine PANR seems to be very attractively priced even after the recent rise.
Think the elusive RNS is close judging by the sp action of late.
PANR has almost doubled since my first post in September.
Looks like the drill will go ahead in Q2 once the JV restructuring is completed. Worth the wait imo.
http://www.investegate.co.uk/pantheon-resources--panr-/rns/half-yearly-report/201303270700059362A/
Not sure how the market will react to this news today but any dip has to be worth buying into.
Those with sufficient patience will be rewarded, eventually!!