Pantheon Resources PLC Corporate Update (7568Y)
August 24 2018 - 1:00AM
UK Regulatory
TIDMPANR
RNS Number : 7568Y
Pantheon Resources PLC
24 August 2018
24(th) August 2018
Pantheon Resources plc
Corporate 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 update:
Appointment of expert technical consultant
Pantheon is delighted to announce the appointment of Professor
Dr. Eric van Oort as a technical consultant to the company. Prof.
Dr. van Oort is the B.J. Lancaster Professor of Petroleum &
Geosystems Engineering at the University of Texas in Austin. In
addition to being a respected academic authority in the Oil &
Gas sector, Eric has extensive experience in drilling and
completion technology, having worked in a variety of senior roles
for Royal Dutch Shell over a period of 20 years, culminating in his
appointment as Wells Technology & Performance Improvement
Manager for Shell 's US operations from 2006 - 2012. Chief amongst
Prof. Dr. Van Oort's many areas of recognised expertise is his work
(both published and in the field) on well construction and well
performance optimisation which, together with his expertise in well
bore geomechanics, position him perfectly to advise on future
drilling operations.
Prof. Dr. van Oort was appointed following a series of technical
discussions covering both geology and the operational performance
to date. Prof. Dr. van Oort is considered to be a leading expert in
certain drilling disciplines directly relevant to our asset base.
Pantheon has repeatedly stated its belief in the geological
potential of our acreage, with the issues experienced to date
largely operational. This appointment should help address the
operational challenges that have occurred during the drilling of
our previous wells. The Board believes that the appointment of
Prof. Dr. van Oort will further bolster the technical resources
within our company. We believe the combined expertise of Sierra
Hamilton technical consultants, Prof. Dr. van Oort and Art Berman
will serve to advance the project, and the interests of all
shareholders, as we move forward.
Tyler County Gas Processing
We are pleased to report that the advance work to begin clearing
trees from the right of way of the pipeline in Tyler County began
on 21 August 2018. Guidance on timing for completion of the
gathering line connecting VOS#1 to the nearby Enterprise pipeline
has not changed with first production targeted for mid October
2018.
Update on Vision
We can confirm that negotiations with the Estate of Bobby Gray,
following his passing in June 2018, are at an advanced stage as
Pantheon seeks to increase its working interest in the project to
100% and thereby assume full control and operatorship of the asset.
The intended terms of any such agreement with the Estate are
expected to be largely as outlined in our RNS dated 7 August 2018.
Pantheon is seeking to formalise an agreement with Mr. Gray's
family in a sensitive and fair manner and will of course update
shareholders as and when these negotiations conclude.
In parallel with the negotiations with the Estate, the Company
is in discussions with a view to concluding a farm-out of the
Company's Polk and Tyler County assets. Technical due diligence is
presently under way with one party having progressed to a
discussion of commercial considerations. As previously reported,
the objective is for the farm-in partner to provide funding (and
possibly operatorship if appropriate) for drilling operations in
exchange for a working interest in the project. The Board will
notify shareholders as appropriate as these negotiations move
towards a conclusion.
Chief Executive Officer Jay Cheatham, said the following:
"I am truly delighted Pantheon has attracted an industry expert
of the calibre of Professor Dr. Eric van Oort. In securing his
services as a consultant to the company, I have no doubt he will
bring his widely recognised expertise to bear as our project in
east Texas advances. Preliminary work has already begun in Tyler
County to clear the trees along the right of way in preparation for
the installation of the gathering line connecting VOS#1 to the
Enterprise pipeline. Anticipated cash flow from gas sales from
VOS#1 alone should more than cover Pantheon's annual overheads.
"Pantheon is negotiating with a number of different parties to
secure the future success of our project in East Texas and to
unlock the potential value of our asset for all shareholders.
Whilst I cannot guarantee the successful conclusion of these
negotiations, we have made significant progress since we last
updated the market on 7 August 2018 and I look forward to providing
a further update to fellow shareholders as soon as possible."
-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
Ben Brewerton
For further information on Pantheon Resources plc, see the
website at: www.pantheonresources.com
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.
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END
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