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Pantheon Resources to frack and test latest East Texas well

"Crucially, nothing we have seen diminishes our belief in the potential of the acreage,” Cheetham said
oil and gas operations
Pantheon updated on multiple well operations

Pantheon Resources PLC (LON:PANR) has updated investors on its operations in East Texas, where the VOBM#5 well has unearthed 60 feet of net pay in the Eagle Ford sandstone formation, and despite experiencing problems during drilling, the plan is now to frack the well.

A frack crew is expected to be on site later this month, in the week beginning March 19. The well will subsequently be tested – and, if successful, it will be connected to gas processing facilities.

READ: Pantheon Resources kicks off new drill programme, VOBM-1 well seeing reduced output

The company noted that the well pad and access roads suffered modest damage during localised flooding, which has now subsided, and that contractors are due to make repairs later this week.

Jay Cheatham, Pantheon chief executive, said: "I am extremely pleased that the VOBM#5 well has found the Eagle Ford sandstone where we expected and that the well was drilled on budget.

“These wells are covered by 3D seismic and we can clearly see it has the potential to be a significantly better well than VOBM#1 which is located in the pilot hole of what was set up to be a horizontal well, over 1500 feet away from the intended target.

“The well encountered hydrocarbons while drilling and the logs look great. If successful, it will be hooked up and into production as soon as possible thereafter; possibly within weeks.”

VOBM#1

At VOBM#1, fracking (intended to remediate the obstructions and damage in the wellbore) has been completed and, whilst further wellbore problems were noted, the company managed to flow test the well’s upper section to produce 4mln cubic feet of natural gas and 132 barrels of oil per day, as well as variable water volumes, during the test.

VOBM#1 is hooked up to processing infrastructure and is producing.

Meanwhile, drilling operations have now reached a conclusion at the VOBM#4 well site, with a vertical sidetrack now complete. Pantheon concluded, however, that the well did not produce hydrocarbons in commercial quantities.

Cheetham noted that the Wilcox zone within VOBM#4 still requires further analysis, but the potential in the vertical wellbore is limited compared to other multi-stage fracked horizontal wells.

"Crucially, nothing we have seen diminishes our belief in the potential of the acreage,” Cheetham said.

“The issues that we have encountered in the Eagle Ford have been wellbore specific operational issues, compounded by the long shut-in periods in our high temperature, high pressure environment.

“The 301mmboe P50 prospective resource estimate of the acreage potential remains current and is based upon the Eagle Ford sandstone and Austin Chalk plays only.”

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September 14 2018
The company is well funded to fast‐track its flagship project towards completion of a definitive feasibility study, anticipated in Q3 2019.

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