Pantheon Resources PLC Operational Update (1929K)
April 09 2018 - 2:25AM
UK Regulatory
TIDMPANR
RNS Number : 1929K
Pantheon Resources PLC
09 April 2018
9 April, 2018
Pantheon Resources plc
Operational Update
Pantheon Resources plc ("Pantheon" or "the Company"), the
AIM-quoted oil and gas exploration company with a 50% - 75% working
interest in several conventional project areas in Tyler and Polk
Counties, onshore East Texas, provides the following operational
update.
VOBM#5 - Frac operations
Fracking operations commenced at VOBM#5 on 27 March 2018. The
frac was executed on plan and on schedule with all frac fluid and
proppant displaced as anticipated. After weather delays the well
was placed into test on 30 March 2018. Gas production commenced in
the following days along with frac fluid and later formation
water.
The well was shut in for a short period to observe shut in
pressure build up and then tested again. Following the
recommencement of testing and after recovery of the majority of the
frac fluid, the well tested at an average of 1150 mcfpd along with
170 bwpd and no oil, on a 10/64ths choke and 5900 psi flowing
tubing pressure. During testing the well began freezing up and
production flow was interrupted repeatedly. A decision was made to
shut the well in until heaters become available, which is currently
anticipated to be during the week commencing 9 April 2018. Testing
will resume once these have been fitted.
Based upon the extremely good log responses for VOBM#5 which
showed 60-feet of net pay in the targeted Eagle Ford sandstone, and
which appeared superior to the logs of our VOBM#1 well and of
comparable Double A Wells field wells, we expected to see very good
flow rates. Therefore, the produced volumes of water and the fact
that no oil has been produced is unexpected. It is believed that
the frac most likely went down a fracture plane into a deeper water
source which was not seen on the logs and the water produced is
impeding hydrocarbon production. Additional analysis is being
undertaken in conjunction with third party experts to better
understand the behaviour of VOBM#5 and to determine the appropriate
course of action for this well and our West AA acreage in Polk
County.
By comparison, the nearby VOBM#1 well produced during its
testing period at over 6000 mcfpd and over 500 bopd without
formation water prior to its shut-in and the collapse of the casing
in that well. The presence of such quantities of water in this well
is anomalous when compared to all our other wells and to those
wells which we believe to be analogous in the Double A Wells Field,
none of which produced water at these rates, and all of which
produced oil/condensate.
VOBM#1- Remediation works
The Company and operator have confirmed a remediation plan for
the collapsed casing within the VOBM#1 well; to conduct a sidetrack
operation or possibly a redrill. It is anticipated that remediation
works will take c.45 days from their start, and it is our
expectation that this should significantly increase production from
this well. That operation will begin after analysis of VOBM#5 has
been completed. The Company looks forward to reporting on the
progress of this operation.
London Roadshow
Jay Cheatham, CEO, will be in London this week meeting with
investors. The Company advises that it is not undertaking any
fundraising activities.
Jay Cheatham, CEO, said:
"At the VOBM#5 discovery well, the representation of the Eagle
Ford Sandstone in the log responses were some of the cleanest I
have seen to date and, such logs would be expected to result in
upper tier wells. It is perplexing that we have produced water in
such quantity while on test and that production rates differ so
much from the pre-shut in VOBM#1. We have one of the most
experienced teams in the region addressing the issue and are using
the time while we wait for heating elements to calibrate the
seismic to the well logs to determine if we have encountered a
deeper water bearing zone which was unseen on the logs and which is
impeding hydrocarbon production. Once we have completed our
analysis and have more production test data we will be in a far
better position to assess the productivity of this well.
"I can also report that last week the operator and I met with
one of the entities exploring the possibility of participating in a
Wilcox and Navarro play on our Tyler County acreage. Those
discussions are ongoing."
-Ends -
Further information:
+44 20 7484
Pantheon Resources plc 5361
Jay Cheatham, CEO
Justin Hondris, Director, Finance
and Corporate Development
Stifel Nicolaus Europe Limited (Nominated +44 20 7710
Adviser and broker) 7600
Callum Stewart
Ashton Clanfield
Nicholas Rhodes
+44 20 3727
FTI Consulting 1000
Ed Westropp
James Styles
For further information on Pantheon Resources plc, see the
website at: www.pantheonresources.com
In accordance with the AIM Rules - Note for Mining and Oil &
Gas Companies - June 2009, the information contained in this
announcement has been reviewed and signed off by Jay Cheatham, a
qualified Chemical & Petroleum Engineer, who has over 40 years'
relevant experience within the sector.
The information contained within this RNS is considered to be
inside information prior to its release.
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) is incorporated into, or forms part of, this
announcement.
Glossary
bopd barrels of oil per day
------ ------------------------
bwpd barrels of water per
day
------ ------------------------
FTP flowing tubing pressure
------ ------------------------
frac fracture stimulation
procedure
------ ------------------------
mcfpd thousand cubic feet per
day
------ ------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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