Pantera Petroleum Completes Seismic Reprocessing

 Pantera Petroleum, Inc. announced that the Company has completed the reprocessing and interpretation of approximately 178 miles of 2-D seismic data located on its Pantera Concession, consisting of approximately 988,000 acres in northern Paraguay. Tim Berge, a licensed independent consultant geophysicist and a former lead geophysicist with ExxonMobil, completed the seismic reprocessing and interpretation on behalf of Pantera. Berge has extensive exploration experience in South America.

Based on this initial interpretation, a prospective reservoir area of approximately 7,500 acres has been identified along with a proposed drill location, called Pantera #2. The projected depth to the top of the prospective reservoir target is approximately 4,100 feet, and the potential reserves exposure is estimated at 129 million barrels of oil recoverable.

Within the concession, prospective traps are formed by a combination of structure and the orientation of the reservoir, both of which are clearly imaged by the reprocessed seismic data. The overall structure is a simple monocline, or straight slope, segregated into individual fault blocks. The prospective reservoirs are Paleozoic sandstones deposited as turbidite fans and sand-filled channels. Turbidite fans are deposits of sand, silt and shale deposited in deep water near the base of submarine canyons. They are delta- or fan-shaped, and their cross-section profile is mound to wedge-shaped.

The Pantera #1 well, drilled by Phillips Petroleum in 1995, is important because oil and gas shows in the pre-Tarija sands demonstrated the presence of quality source rock that is at a thermally mature stage. The well confirmed the presence of source rock and seal, but did not encounter the targeted fan reservoir facies. Instead, improved seismic imaging now suggests that the Pantera #1 was drilled, not into a true turbidite fan, but instead into an erosional surface. Live oil shows were also recorded below the seal facies, with samples exhibiting both fluorescence and cut, along with increased mud gas readings. In fact, the drilling was stopped to flow-check the well because of the high gas readings.

Pantera #1 well files were recovered from storage in Paraguay and fully digitized and incorporated into the report. The Pantera #1 well tops and intervals were tied to existing seismic lines and correlated around the rest of the reprocessed data grid.

Based upon our seismic results, we have selected the Pantera #2 drill site at a target drill depth of approximately 5,900 feet below the surface. At the Pantera #2 location, the reservoir facies are thicker and structurally deeper, when compared to the Pantera #1. The Pantera #2 targets a high structure created by differential compaction over a large turbidite fan deposit (prospective reservoir target). The prospective reservoir target exhibits the chaotic or "disorganized" seismic reflection patterns commonly associated with hydrocarbon productive fan sequences in many other productive areas, notably offshore Nigeria.

To mitigate potential risk, we intend to incorporate surface geological investigations, correlating their results with the seismic data to optimize the drilling program. We are also continuing to process a number of large seismic displays on paper that are from the older Texaco surveys through a process called seismic vectorization (or SEGY conversion) to recover and reprocess those data as if we had the tapes. The process should allow us to do post-stack processing (migration) and then load the data with our existing data. This should add useful information of a more regional nature that would help put the regional perspective together. We are currently accumulating additional well data to aid in this survey.