Pantheon Resources Plc, incorporated in the UK, is a small, independent oil and gas exploration and production company operating mainly in the U.S. Its principal area of focus is in the onshore Gulf of Mexico region, specifically Texas and Louisiana. Such places offer lower drilling and development costs than offshore and other less-known, unproven territories. The lead times to commercial production are therefore shorter. These are the factors that the company must consider as a small player with limited capital. But a series of fund raising activities has been implemented and successful in addition to the £10 million IPO in 2006. The funds have allowed the company to pursue a portfolio of diverse projects with different risk profiles. The company’s strategy is committing to both high risk/high reward, under-explored plays with potentially high impact and lower to moderate risk, extension/development plays with current drilling success.
Projects Intended for Future Payoff
Pantheon Resources Plc initially focussed on deep geological plays with potential for major growth in reserves and production. Two farm-in agreements that the company entered into early on are the Texas Padre Island project and the South Louisiana project, both of which are large, high quality natural gas plays in the under-explored deep sections of the Gulf of Mexico region. Two wells have been drilled so far without success on Padre Island, which is near Corpus Christie, Texas, with one well later plugged and abandoned for being non-prospective on deep reservoirs and the other bringing on-stream only moderate production and shut in eventually. The South Louisiana project has experienced similar results as for now. The first well was abandoned for mechanical reasons after the drill pipe stuck in the hole twice unable to reach deeper and second well found non-commercial quantities of natural gas.
Projects Concerned with Current Cash Flow
Out of the total five projects in which the company holds various interests, the other three projects were later entered into in a shift in focus from high risk deep play to low risk development play. Two such projects are in Texas, the Tyler County project and the Project Wharton, and the third one in Louisiana, the Bullseye project. North of the company’s Tyler County project, there has been drilling success by two operators that will also operate, with interests, the company’s wells here. The area is considered an old play first discovered in the 1930s. Early success has been achieved at Project Wharton, which spread out from Houston to Corpus Christie. The project operator has a long, successful drilling history in the Gulf region. Drilling for the Bullseye project has been conducted in areas that were discovered by a predecessor of ExxonMobil back in 1944 and is producing positive cash flow from two wells with more on the play.
Shares (PANR) of Pantheon Resources Plc are listed on LSE’s AIM sub-market and were at 23.50p as of 12 July 2010.