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Pantheon reassures shareholders after death of operator's principal
Oil and gas exploration company Pantheon Resources updated the market on Thursday, reporting that following the recent death of Bobby Gray - the principal of Vision Resources, which operates Pantheon's leases - operations across its acreage had continued without disruption.
The AIM-traded firm also confirmed that there had been no change to its lease position across Tyler and Polk counties.
Its CEO, Jay Cheatham, had met with the "long-standing team" at Vision, who reportedly confirmed their intention to remain in place and to maintain continuity of operations.
Pantheon said that importantly, the consulting geologist - Art Berman - who it said had an "intimate knowledge" of the company's projects in Tyler and Polk Counties, would lead the geological efforts going forward.
"The company's intention remains to drill the sidetrack of VOBM#1 as soon as practicable, as announced on 5 June," the board reported in its statement.
"However, Pantheon recognises the disruption to Vision and understands recent events may potentially impact timing.
"The company will update shareholders in due course."
Pantheon said the budgeted total cost, on a 100% basis, to drill and complete the planned VOBM#1 sidetrack well was $2.7m, with $1.6m net to Pantheon at a 58% working interest.
Following the outcome of the VOBM#1 sidetrack, the firm said it would make a decision on a possible redrill of the VOBM#5 well.
The board confirmed that as at 12 June, cash and prepayments amounted to $4.6m.
"Pantheon advises that negotiations are nearing finalisation with the operator of the Tyler County gas processing company," it said.
"A further update will be provided as and when appropriate."
Pantheon also confirmed that third-party discussions were continuing in connection with a possible farm-in to Pantheon and Vision's Tyler County, Wilcox and Navarro prospects.
Additionally, it said that following the positive findings of Sierra Hamilton's analysis of its Polk County assets, the board had initiated discussions with external parties for a possible farm-out over a defined portion of one or more forthcoming wells there.
"The board believes such a farm-out approach to be a sensible one if successfully executed, allowing one or more wells to be drilled, whilst preserving capital.
"A further update will be provided as and when appropriate."