Argo Exploration (ASX:AXT) which owns 7 million shares in London listed oil producer Pantheon Resources Plc (LON:PANR) has revealed it will continue to hold the shares in light of Pantheon oil and gas discoveries in Texas.
A well in onshore East Texas (Pantheon 50% WI) was confirmed as a commercial discovery at a rate of over 750 barrels of oil per day, which could be significantly increased using a standard fractional stimulation procedure.
Based on similar procedures in the field, the flow rates could be improved by up to three times the initial flow rate.
While at a Pantheon well (50% WI) in Polk County in onshore East Texas, first commercial production is estimated to occur in the early part of Q2 2016 with robust operating margins.
Based on these successes, Pantheon's share price has been on a tear since October 2015, rendering Argo's shareholding worth a very tidy $16 million at current prices.
Which is all the more interesting given Argo only trades at a circa $13 million market cap.
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