Pantheon Resources Plc (LON:PANR) has told investors that its latest well in east Texas has unearthed a potentially significant reservoir.
Drilling operations are now complete for the vertical VOBM#3, the company said.
It was drilled down to a depth of 14,500 feet and data indicates the presence of hydrocarbons in a potentially significant reservoir in the primary target, the Eagle Ford/Woodbine sandstone.
Nonetheless, Pantheon cautioned that the true significance of the result cannot be accurately assessed until flow testing has taken place.
It will now bring in a lower cost work-over rig to complete the well for testing. Pantheon said it would update investors once it has contracted a rig and the project timetable can be met.
"I am very pleased with this result for a number of reasons,” said Jay Cheatham, Pantheon chief executive.
“Firstly, the VOBM#3 well was drilled on time and on budget, confirming that in a vertical configuration these wells can be drilled efficiently.”
“Secondly, we have now drilled four wells in this programme, all of which have encountered potentially significant hydrocarbons within the target horizon.
He added: “Finally, this latest success means that, once flow testing on VOBM#3 has been completed, we will be in a position to finalise the gas processing facility arrangements and bring both VOBM#1 and VOBM#3 onto production thereafter."