Shares in Pantheon Resources PLC (AIM: PANR) soared in early trade after the oil and gas explorer announced the start of commercial production from the Jumonville#2 well on the Bullseye prospect in Lousiana, US.
The stock climbed 26 percent in early deals after the news broke.
The main target interval, the Miogyp sandstone, has been perforated and tested successfully. Jumonville#2 has been brought into commercial production at an initial gross rate of 750 barrels of oil per day and 250,000 cubic feet of gas.
Oil from the Miogyp at Jumonville is high quality 40 API oil. Under the current sales contract this oil receives a US$2 per barrel premium to West Texas Intermediate light crude.
Incorporating the initial flows from Jumonville#2, gross oil and natural gas sales at Bullseye will treble and double respectively. This should provide an immediate increase to cash flow.
Three zones were tested in Jumonville#2. A shallower zone, the Camerina, was not tested in this well. The Camerina provides potential for further upside across the Bullseye prospect.
Jay Cheatham, CEO of Pantheon Resources, stated: "After a challenging well I am extremely pleased with the commercial success in the Miogyp zone, the prime objective of the Jumonville#2 well.”
Apart from the Bullseye and Lousiana South exploration projects, South Pantheon’s main focus is the development of La Playa Deep and Wilson on the Padre island field offshore Corpus Christi in Texas. It has also farmed-in several prospects at Project Wharton and Tyler County, both onshore fields in Texas.
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