The sheen was taken off the latest update from Pantheon Resources (LON:PANR), which reported some encouraging results from its latest well but was unable to provide definitive flow rate because of a blockage.
The shares, up 650% in the past year, reversed 16% in early trade.
Not fair really given its latest well, VOS#1 in Tyler County, Texas, had the potential to be “an exceptional well”, the firm said.
It hit a hydrocarbon-bearing layer 107 feet thick in the Eagle Ford shale.
Probably slightly off-putting is the fact Pantheon encountered a lot of gas, which is almost impossible to produce economically.
Still, the net pay (that hydrocarbon layer) was 70% thicker than the corresponding oil and gas bearing horizon located in the Eagle Ford and found by the VOBM#1 well in neighbouring Polk County.
Initial flow rates suggest VOS#1 is larger than the average discovery in the area, which is host to around 3mln barrels of recoverable oil equivalent.
"From the V0S#1 well, the net pay encountered and initial flow rates are very encouraging,” said Pantheon chief executive Jay Cheetham.
“Although we are disappointed that we cannot report production numbers at this time, I am confident we will be able to remedy the downhole issue, which is most likely heavy mud blocking perforations.
“Similar blockages are known to have occurred in the analogous, nearby Double A Wells field and were subsequently successfully remedied. Even at the reduced flow rates after the blockage, the well is still flowing commercial quantities of hydrocarbons. Without the blockage, our data suggests that this has the potential to be an exceptional well.”