Pantheon Resources’ (LON:PANR) chief Jay Cheatham said he was ‘highly encouraged’ by the presence of an oil and gas bearing zone that was separate and independent of the primary and secondary targets of well it is drilling in East Texas.
In a statement to the stock market, Pantheon said hydrocarbons were intercepted at around 12,600 feet at VOS#1.
It is not the first time this has happened. A nearby well, now a ‘substantial producer, encountered this additional accumulation.
While optimistic, Pantheon told investors: “[We] would caution that it is premature to ascertain the commercial viability of this zone without robust testing procedures being undertaken.”
The upshot of the unexpected discovery will be two-week delay to get to the main targeted horizons.
The primary and secondary objectives of the campaign are the Eagle Ford/Woodbine sandstone and the Austin Chalk respectively.
Following a side-track the drill-bit is back on course on “trouble-free basis”, Pantheon said.
“Whilst there has been a delay to drilling operations on this well, the second in our drilling programme, the unexpected presence of hydrocarbons from this new zone is highly encouraging, albeit testing will be required to establish if it is commercially viable,” said CEO Cheatham.
“We have now successfully sidetracked the well and are drilling ahead to our primary and secondary objectives.”
VOS#1 is in Tyler County, in East Texas, which neighbours Polk County, the site of the VOBM#1 well, which flowed a 1,500 barrels of oil equivalent a day and in which Pantheon has a 50% stake.
The shares, up 410% in the year to date, advanced a further 12% in early trade to 81p. It means the business is now valued at just shy of £170mln.