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Pantheon ‘encouraged’ by explanation for drilling problems at Vision Rice University well

Published: 13:05 13 Aug 2009 BST

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Pantheon Resources PLC (AIM: PANR) said the problems encountered during drilling of the Vision Rice University #1 well in East Texas may well have been caused by the drill hitting an ‘unconsolidated rubble zone’, which, while delaying completion of the well, would be highly encouraging as such zones usually show higher permeability and porosity.

In a statement, it said operator Vision Resources LLC initially ascribed the mechanical difficulties to the higher than expected pressure regime encountered. More recently, there is strong evidence to suggest that the well may have penetrated an unconsolidated rubble zone, the presence of which was imperceptible on the seismic available to the joint venture prior to drilling. Such zones are known to exist elsewhere in the Austin Chalk.

Rubble zones usually lead to both enhanced recovery and flow rate per well. If confirmed, these factors would have a significant and beneficial impact on the project's economics.

Additionally, during the very limited testing operations performed, the well produced natural gas, condensate and black oil.

The information gathered from the current well should facilitate the drilling of future wells on the project. In particular, it should result in subsequent wells being drilled at a lower cost than originally expected, despite the mechanical problems contributing towards additional time and cost overruns in Vision Rice University #1. Lower potential future drilling costs would also enhance the project's economics.

Vision Resources has now formalised a plan for remedial operations allowing it to complete the well within three weeks after equipment has been recovered from the borehole.

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