Pantheon Resources plc has issued an operational update for its Jumonville-1 Bullseye Prospect, located in Iberville Parish, Louisiana, and has also provided news concerning its Wilson well, which has been shut-in for maintenance.
The Company advises that the Jumonville-1 well and drill-site were not impacted by the recent Hurricane Gustav, which passed to the west of the location. Completion work recommenced on Friday, September 5, 2008 after clearing numerous fallen trees along the access road. The operator will continue to monitor closely the Gulf Coast weather situation and the tracking of new hurricanes.
The production liner tie-back for the Jumonville-1 well has now been successfully run and cemented. Further completion and surface facility operations are in progress.
A flow testing program is expected to commence within the next week. Planning and permitting for a gas sales pipeline for associated gas is also underway.
The Company is very encouraged about the potential of the Bullseye prospect. However it does stress that the commercial significance of the discovery is yet to be determined and will be a function of a planned production testing operation.
Pantheon is participating with a 15% interest in the Bullseye prospect prior to back in rights, or an 11.25% working interest after exercise of back in rights.
The Company has also advised that the Wilson well (ST 949-1) is presently shut-in, pending a workover to assess a possible mechanical problem associated with the tubing/packer seal within the well. Prior to shut-in, water production from the well increased significantly, coupled with a reduction in production volumes.
The operator, Golden Gate Petroleum Ltd., is currently focusing all its resources on finalising the drilling, testing and completion of the Bullseye (Jumonville-1) well as its immediate priority. It is expected that Wilson works will follow completion of Bullseye. The Company will advise the market once these works have been completed.
Whilst the full impact of the Wilson well is subject to the pending mechanical works, Pantheon anticipates adopting a conservative approach in the light of the falling production volumes and would anticipate taking a material impairment charge against the carrying value of the well in the Company's balance sheet.
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