Deeper Zones of Plum Deep Non-Commercial

Pantheon Resources says three of the deepest zones in the Kindee ST 212 #1 sidetrack well on the Plum Deep structure in South Texas have been tested. This program has determined that the deepest three zones in the sidetrack well are non-commercial, despite encouraging preliminary indications. Consequently the sidetrack has been plugged and abandoned.

A fourth shallower zone remains to be tested. This is located behind the 7 inch liner. Indications of a natural gas-bearing zone were recorded over an approximate interval of 25 feet.

A work-over rig will be utilized to test and evaluate this fourth zone. This testing program will commence within the next six weeks.

The Parker 122 rig has commenced moving to the next location in the drilling program. The Kindee ST 949 #1 well will be drilled on the Wilson prospect, further north on Padre Island.

This well will test prospective zones in the upper Frio system. This system is different from the primary Middle Frio objectives of Plum Deep. This is at similar depths to where discoveries have been made elsewhere on Padre Island. These include La Playa Deep and La Playa Shallow to the north, and Dunn Peach # 6 to the south.

Pantheon is disappointed with the results of the testing and sampling program. Detailed evaluation of the data gathered will now commence. This is expected to take some time and the conclusions may impact on the rest of the drilling program. As a result of the time expected to be expended on the analysis of the data from Plum Deep, near term drilling has shifted to the shallow prospect in Pantheon's portfolio, Wilson.