Addition to portfolio

Pantheon Resources PLC
17 July 2007

July 17, 2007

PANTHEON RESOURCES PLC

New Venture Added to Pantheon's Louisiana Portfolio

  • Pantheon expands activities in Louisiana
  • Farming-into Bullseye prospect in Iberia Parish.
  • Two prospects are to be tested with one well, scheduled to commence in
    fourth quarter 2007.
  • Gross potential reserves are estimated at 12.5 million barrels of oil and
    33 bcf of natural gas
  • Adjacent to South Louisiana venture and close to existing production at
    the Laurel Ridge field.
  • Pantheon now has three high impact prospects in its portfolio: Bullseye,
    South Louisiana and Padre Island.
  • This new project is consistent with Pantheon's stated strategy to focus on
    hydrocarbon exploration onshore or near shore in the GoM

Details of Farm-in

The Board of Pantheon Resources plc ('Pantheon') announces that it has
farmed-into an oil and natural gas exploration venture in Iberia Parish,
Louisiana. This is located to the south-west of and adjacent to Iberville
Parish, where Pantheon has farmed-into its South Louisiana venture.

The farm-in covers one prospect, Bullseye, with leases covering 1,700 net acres
The Bullseye prospect is testing deeper untested fault blocks on the crest of
the Laurel Ridge field. Laurel Ridge is a 'turtle' feature (inverted basin)
feature discovered in 1944 by Humble Oil (ExxonMobil).

At Bullseye the intention is to test two deeper geopressured targets with one
vertical well. These have combined gross best estimate potential reserves
(previously described as 'P50 potential reserves') of 12.5 million barrels ('
mmbo') of liquids and 33 billion cubic feet ('bcf') of natural gas.

Pantheon is participating with a 15% working interest ('WI'), carrying the
farm-out company, Hawkeye Stratigraphic Inc., for a 25% back-in to casing point.
At this point Hawkeye may elect to participate in the well. If this occurs,
Pantheon's working interest would fall to 11.25% and its net revenue interest
would be approximately 8.08%.

The cost of the first well is being finalised. However, it is estimated that the
total expected total dry hole cost outlay to Pantheon is around US$0.81 million.
Pantheon is paying back-costs of just under US$0.15 million.

The well is currently scheduled to commence in fourth quarter 2007. It is
estimated to take approximately 30 days to reach total depth on a trouble-free
basis. The drilling location has been approved. Title examination is underway.
Golden Gate Petroleum will act as the operator, having farmed-into this prospect
on similar terms.

Bullseye Prospect- Geology and Geophysics

The Bullseye prospect's principal attributes may be characterised as:

  • Two independent traps mapped by 3D seismic
  • An offset well with logs indicating both pay and hydrocarbon shows
  • Numerous successful direct local analogs for prospects similar to Bullseye

The Bullseye prospect is a deeper pool prospect with targets in the Miocene
(Miogyp) and Oligocene (Cib Haz) between 12,400 feet ('ft') and 13,500 ft on the
crest of the Laurel Ridge anticline. Laurel Ridge is a 'turtle' feature
(inverted basin) feature discovered in 1944. Laurel Ridge was discovered by
Humble Oil (ExxonMobil). Laurel Ridge produced 146 billion cubic feet ('bcf') of
natural gas and four million barrels of oil ('mmbo') from normal pressured sands
between 10,100 feet ft and 10,600 ft. These sands are now depleted.

The initial Bullseye well location is 3,000ft offset to the Noble #1 Acosta well
drilled in 2005. This well was plugged due to mechanical difficulties. Although
the Oligocene target was not reached by the latter well, both electric and mud
logs were obtained for the Miocene. Electric logs indicated some 50ft of low
resistivity-low contrast pay. Mud log data indicated possible natural gas and
condensate shows across the Miocene section.

In 2005, 3D seismic acquisition was completed after the abandonment of the Noble
#1 Acosta. Analysis of this seismic data which had been calibrated to the
lithology, identified a clearly independent stratigraphic trap in each of the
Miocene and Oligocene zones.

The initial well is planned to test both Miocene and Oligocene. In surrounding
analog fields both the Miocene and Oligocene reservoirs are considered high
quality. Porosity ranges between 24 to 30% and permeability between 300 to
1,000mD. Producing well rates from these fields range from 500 to 1,000 barrels
per day of oil and 4 to 10 million cubic feet of gas per day. A number of these
analog fields are similar to Bullseye in terms of seismic characteristics and
trap geometries

In accordance with the AIM Rules, the information in this report has been
reviewed and signed off by Mr Robert Rosenthal, (BSc Geology, MSc Geology),
Technical Director at Pantheon Resources Plc, who has over 30 years relevant
experience within the sector.
Contacts:

Pantheon Resources Plc
Sue Graham, Chairman                                     [phone]
Oriel Securities Limited
Scott Richardson Brown                                   [phone]




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