Pantheon Announces Third Wharton Start-up

Pantheon Resources PLC reported the start-up of production at its third natural gas field in its Project Wharton venture. The Caddo field came onstream on February 8, 2007 at an initial rate of 400 thousand cubic feet of natural gas per day (mcfd). Pantheon has an 18.75% working interest ("WI") in Caddo.

Output from Caddo will augment existing production from Pantheon's two other natural gas fields, Zebu (9.375% WI) and Mohawk (18.75% WI). Pantheon's production on a WI basis has more than tripled since Zebu was brought onstream in late September 2006. From a monthly average of 33.5mcfd to Pantheon in October 2006, current combined output is estimated at around the 110 to 120 mcfd level.

These fields make up an attractive and growing income stream for Pantheon. This increasing natural gas production occurs at a time of improved US natural gas prices. It represents an important income stream for a small company such as Pantheon and also offers attractive near term financial returns. These fields and prospects are all small and at shallow depths. In addition, easy access to infrastructure has enabled Pantheon to generate cash flow quickly from its discoveries.

Pantheon plans to drill another exploration well, Baptist, in first quarter 2007. A further three wells in and around the company's discoveries are currently scheduled for 2007. As these are not subject to the farm-in terms, they would have a higher value to Pantheon, if successful.

Since its initial farm-into three projects in June 2006, Pantheon has farmed into three more prospects and drilled five wells on Project Wharton. The current interests and status of all prospects in which Pantheon has an interest are shown below.

Project Wharton and Pantheon's Interests
Prospect	Pantheon Working Interest	Status
Zebu #1		9.375%				Producing
Caddo #1	18.75%				Producing
Dakota #1	18.75%				P&A non-commercial shows
Mohawk #1	18.75%				Producing
Baptist #1	11.50%				Drilling scheduled for 1Q 2007
Kant #1		18.75%				P&A non-commercial shows
Source: Everest Resource Company

Project Wharton provides Pantheon with low risk plays to balance the higher risk/reward plays at the PI Project Area. Overall exploration risk for the Project Wharton prospects is regarded as low, ranging from 50% to 80%. This compares with 15% to 36% for the deep JV of the PI Project Area.

Zebu (Pantheon 9.375%)

Zebu #1 was discovered in August 2006 and commenced production on September 29, 2006. The well is currently producing around 215 to 220 mcfd. Zebu discovered natural gas in two Frio sands. It is producing from the deeper zone at around 4,280 feet ("ft"). The primary objective, which encountered natural gas at around 3,750 ft, remains to be completed for production. The Joint Venture intends to produce from the secondary zone until depleted and then complete the primary zone higher up the well bore. The success has led the Joint Venture to plan on drilling another Zebu well in 2007.

Mohawk (Pantheon 18.75%)

Mohawk #1 was discovered in October 2006 and brought onstream on December 1, 2006. It has been producing within a consistent 110 to 120 mcfd range since start-up. Mohawk #1 encountered natural gas in both its primary and secondary Frio objectives.

The success at Mohawk has led the Joint Venture to plan to drill another Mohawk well. The Mohawk #2 will test a slightly smaller amplitude anomaly (30 acres) at 4,075 ft that is very similar to, but fault separated from the Mohawk #1 anomaly. As this is not subject to the farm-in terms, it would have a higher value to Pantheon, if successful.

Caddo (Pantheon 18.75%)

Caddo #1 encountered natural gas in a shallow Frio formation at around 4,470 ft and was completed for production testing in November, 2006. The Caddo #1 discovery is particularly important. It is located in an area of mutual interest that covers a large area where six other prospects exist. These target comparable Yegua and Frio anomalies, but Miocene objectives are also present in all of them.


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