Pantheon Resources announced plans to frack its East Texas VOBM#5 well on Friday after the company unearthed 60 feet of net pay at the site.
The independent oil and gas company has experienced problems during drilling at the site on the Eagle Ford sandstone formation, where logs have confirmed the presence of a potentially significant hydrocarbon bearing horizon.
A fracking crew has been contracted to work the well, which Pantheon has a 75% working interest in, and will begin on the week commencing 19 March.
Jay Cheatham, chief executive of Pantheon, said: “These wells are covered by 3D seismic and we can clearly see it has the potential to be a significantly better well than VOBM#1 which is located in the pilot hole of what was set up to be a horizontal well, over 1500 feet away from the intended target. The well encountered hydrocarbons while drilling and the logs look great. If successful, it will be hooked up and into production as soon as possible.”
The VOBM#1 well, which Pantheon holds a 55.1% interest in, has seen production achieving an average rate of 4,000 mcf/d of natural gas and 132 bopd with variable quantities of water at a stabilized flowing tubing pressure.
Until payback, Pantheon will receive 70% of all revenues from the well.
Meanwhile, the VOBM#4 well has seen drilling suspended after failing to yield commercial quantities of hydrocarbons despite good log responses from testing.
“The potential in this vertical wellbore is limited when compared to a multi-stage fracked horizontal well such as those drilled in the Jazz Field. Our analysis of this well continues and both the operator and the Company firmly believe that potential for Wilcox on our acreage remains,” said Cheatham.
Pantheon further reported that it is in advance discussions with two existing gas plant operators for the supply and processing of gas from its current and future Tyler County wells in East Texas.
As of 1435 GMT, Pantheon Resources' shares were down 1.39% at 49.80p.