Volatility remained the theme in Pantheon Resources (AIM:PANR) shares as disappointing results from the first structure to be tested at Plum Deep send back a dud. The shares nose dived 25.6% to 127.5 pence valuing the prospective oil and gas exploration company at £19.8 million. Early results from the shallowest of three zones implied a non-commercial find. Pantheon will now drill to a total depth of 15,450 feet to complete logging and sampling and take a second core from the deepest zone which is 800 gross feet.
Since listing early in 2006, shares in Pantheon have shown extreme volatility as investors try to gauge the high success rate of wells drilled in the vicinity of Plum Deep on Padre Island, Texas, USA versus the high costs of drilling deep wells and potential cost implications of not finding acommerciall discovery.
Pantheon says the Plum Deep structure is considered to be a world class exploration prospect with gross best estimate potential reserves of 161-293bcf (billion cubic feet). Pantheon is paying 33.33 pct of the well costs to earn a 25 pct working interest.