US E&P company Pantheon Resources (PANR:AIM) is down 1% at 28.45p despite commencing testing on its VOBM#1 well in Polk County, Texas.
This may reflect some impatience for a result which is likely to have a significant bearing on the future destiny of the company - work has been delayed by weather and the availability of equipment - although investors will only have to wait at most another couple of weeks.
Pantheon is targeting oil in the Eagleford sandstone formation - which has been highly productive in the nearby Double A Wells field. You can read more on Shares thoughts on the company here. The £55 million cap is also in the process of drilling the VOS#1 well in neighbouring Tyler County which will test both the Eagleford and a lower risk gas and liquids target in the Austin Chalk.
Mirabaud says: ‘Everybody hold their breath. Pantheon Resources has commenced flow test operations on its first well in Polk County, VOBM#1. The results, due out in 10-14 days, are make or break event for the company, which secured backing from investors in 2014 (in a $30 million raise) to increase its acreage footprint and drill two wells.
‘The test will target the Eagleford/Woodbine sandstone, identified from log data as a potential ‘conventional’ reservoir target, with a successful test seen as the key to determining the commercial potential. Pantheon believes the prospect could hold gross resources of 53 million barrels of oil equivalent (mmboe) (37 mmboe net).’
