Pantheon Reports Circulation Loss on Padre Island Prospect

Pantheon Resources Plc on Tuesday issued a drilling update on the Wilson Prospect, which is located on Padre Island, Texas.

The Kindee ST 212 #1, which was spudded on the Wilson Structure on February 7, 2007, has reached a measured depth of 11,850 feet. During drilling a "kick" was taken (gas flowed into the well bore) and the well was shut in as required by standard well control procedures. Gas was flared at the surface, and the density of the drilling fluid was increased to 15.8 lbs/gal, in order to control the pressure in the well. At that point a zone above the gas zone began to take drilling fluid (circulation was lost), and lost circulation material was added to the drilling mud in order to halt the losses.

Pantheon said the forward plan is to continue procedures to cure the lost circulation and then drill ahead until all of the objectives have been penetrated. Electric logs will then be run and analyzed and, if warranted, a 4.5-inch production liner will be set and the well flow tested. There has been no influx of water from the gas zone.

The electric logs will enable the identification of any gas/water contact--and thereby the thickness and quality of the natural gas zone. Pantheon's board, however, emphasized that the final outcome remains dependent on the results of further drilling/logging.

The gross best-estimate potential reserves (previously described as "P50 potential reserves") for Wilson have been assessed at 9 billion cubic feet.

Pantheon's working interesting Wilson is 31.77%, subject to final documentation.