Pantheon Says Texas Operations Not "Materially" Hit By Storm Harvey

LONDON (Alliance News) - Pantheon Resources PLC on Thursday said its operations in Texas were ...

Alliance News 14 September, 2017 | 9:00AM
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LONDON (Alliance News) - Pantheon Resources PLC on Thursday said its operations in Texas were not "materially impacted" by tropical storm Harvey, and confirmed its staff and personnel are safe.

In Tyler County, locations and roads appear to have survived the extreme weather without "material enduring damage", and the operator Vision Operating has been informed that the drilling rig contracted for its planned sidetrack of the VOBM#4 well is estimated to be on location on or about the second week of October.

In Polk County, operations were hit more by the extreme rainfall than in Tyler County, but workers are now back on location and have resumed laying the gas sales pipeline from the VOBM#3 pad to the Gulf South trunk line.

Early assessments suggest this location appears to have been spared significant damage from the storm, and require relatively straightforward repair. However, roads access the locations are in need of "essential repair" before it can commence flow testing at the VOBM#2H well.

The Gulf South pipeline remains on track to begin gas sales in early November following planned maintenance works, with the receipt of first production revenues to follow in December.

Pantheon noted that these timing estimates are subject to change, being based on current, limited information, with the flooding in East Texas significant and all levels of the industry having been hit.

"Both Pantheon and Vision were truly fortunate that our drilling locations have not been materially impacted by the severe flooding in both Tyler and Polk Counties, and that our staff and personnel are safe. It's also great news that the contracted drilling rig for VOBM#4 is estimated to be on location in early October to commence the sidetrack, targeting the Wilcox formation which was encountered during drilling of the main wellbore," said Chief Executive Officer Jay Cheatham in a statement.

"If gas production into the main pipeline does begin in November in accordance with the guidance provided to us, it will be a remarkable outcome for all shareholders. On a personal level, we extend our sympathies to Vision employees and third party personnel we rely on who were not so fortunate. The industry will be dealing with the humanitarian crisis for some time," Cheatham added.

Shares in Pantheon were down 4.0% at 48.00 pence Thursday.

By Hana Stewart-Smith;; @HanaSSAllNews

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Pantheon Resources PLC 18.27 GBX 5.97 -
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