Shares in Pantheon Resources soared in early trading in London after the company revealed two new “potentially significant” hydrocarbon deposits in East Texas.
But Pantheon said drilling on the two new zones at its VOBM#4 well in Tyler County forced it to suspend efforts to reach its primary and secondary targets.
The London-headquartered business said drilling was halted 400ft above the target depth in the Eagle Ford sandstone after mud losses were experienced.
Despite the setback, Pantheon said the new discoveries at shallower depths were a positive development and could become sources of revenue.
Pantheon’s shares on the AIM shot up by almost 17% this morning before settling back down slightly.
As of 8.55am, they were up 13.16% to 75p.
Pantheon chief executive Jay Cheatham said: “Finding these zones charged above the Eagle Ford sandstone is a positive indicator that we are in the right geological location for the centre basin test, to which we remain committed.
“Future wells will be engineered with a larger casing programme in order to account safely for the presence of these zones as we extend our drilling programme.”