Pantheon reports steady production at Texas assets

UK-based oil and gas exploration company Pantheon Resources announced on Wednesday that the operator of its VOBM#3 well in Polk County, Texas had reported steady production across the well's production test.

Pantheon said testing equipment from its VOBM#2H well head been utilised to retest VOBM#3 after it had returned highly variable results in its initial test back in November 2016, saying it had flowed at a stabilized rate of around 1,900 thousand cubic feet of gas per day (mcfpd) with 130 barrels of oil per day (bopd), flowing at a tubing pressure of 4,000 pounds per square inch (psi) on a 10/64ths choke.

Jay Cheatham, Pantheon's chief executive, said "I am very pleased with the flow rates from the VOBM#3 well in Polk County, particularly because they remained steady across the production test, unlike during testing in November last year when they were highly variable. This is a positive sign."

The firm also noted that the workover rig had arrived on location, after the packer and tubing had previously been set up for testing operations, at the VOBM#2H well with operations to begin by Friday.

"We know that the bends and curves in the VOBM#2H well-bore, arising from horizontal drilling issues, are suboptimal for completions and production. However, the well logs are exceptional and the well location, between VOBM#1 and VOBM#3, both of which will be producers, give us confidence that the well location has great potential. Our challenge now is to optimise flow rates given these factors," said Cheatham.

The drill rig for Pantheon's Tyler County wellbore sidetrack was set to arrive on 24 October with operations anticipated to take around 30 to 40 days on a trouble-free basis.

Lastly, the group informed investors that all necessary components for its Kinder Morgan gas processing facility had arrived on location with assembly progressing well and first gas sales slated to be made in early November.

As of 0830 BST, shares in the company that had started the week at 54.00p had dropped 5.08% from its closing price of 66.50p to 63.12p.