Pantheon Resources halts testing of Texas frac after heavy rain

UK-based oil and gas exploration firm Pantheon Resources updated investors on Friday with the progress seen at its operations in East Texas, noting that while it was likely that blockages seen at its VOBM#1 well were likely to be remediated, testing at VOBM#4 had been forced into suspension due to poor weather.

Pantheon said that a fracking team had been contracted to work on VOBM#1, with operations expected to kick off before 26 February, subject to weather conditions.

The frac, designed to remediate the obstruction and skin damage present in the wellbore, believed to have been come about as a result of the well having been shut in for more than 18 months and the effects of migrating formation sand.

Operations at VOBM#5 were said to be proceeding "well and without issue", but over at Pantheon's 75% interest in VOBM#4 in Tyler County, the site had been perforated, but operations had to be suspended as a workover rig came on site due to the well being completely under water from recent heavy rainfall.

Jay Cheatham, Pantheon's chief executive, said, "I very much look forward to the frac of VOBM#1 which aims to remediate the known blockages in that well and to ramp up production into the Polk County gas plant. A good result will have very positive ramifications for our play."

"We were very fortunate to secure the frac crew at short notice, however, the slot available was not long enough to allow us to frac both the VOBM#1 & #4 wells back to back as we had hoped. Unfortunately, the recent heavy rainfall has forced suspension of our testing/completion of the #4 well. If warranted we will endeavour to frac wells #4 and #5 back to back," he concluded.

As of 1040 GMT, shares had fallen off 4.72% to 50.50p.