Spudding of Caddo

Pantheon Resources PLC
05 October 2006


October 5, 2006

PANTHEON RESOURCES PLC

Third Well Spuds on Project Wharton Targeting Caddo Prospect

•    Pantheon's third well on Project Wharton spudded on October 3

•    Targeting the Caddo prospect with potential reserves estimated in a
     0.895 to 2.76 billion cubic feet range

•    Well projected to take less than one month to drill on trouble-free basis

•    Pantheon is paying 25% of the drilling costs to earn an 18.75% working
     interest in Dakota

•    Pantheon is conducting an aggressive exploration campaign on Padre
     Island (Plum Deep) and Project Wharton (Caddo and Mohawk)

The Board of Pantheon Resources plc ('Pantheon') announces that it has been
informed by the operator, Everest Resource Company ('Everest'), that the Caddo 
#1 well spudded on October 3, 2006. This well is located in Wharton County,
south Texas.

The Caddo #1 well is testing an extensional prospect on the Matthews SE Field
complex. It is targeting two anomalies on the east flank of SE Matthews Field,
Thomas Field, and Lissie Field in the Frio and Yegua sections at 4,000 feet 
('ft') and 7,125 ft respectively. The prospect being targeted by the Caddo #1
well is considered low risk with conservative total reserve potential of 0.895
billion cubic feet ('bcf') and high side total reserve potential of 2.76 bcf.

In addition to the Yegua and Frio anomalies, this well might encounter other pay
zones in the Frio, Miocene, and Yegua sections. Non-anomaly associated pays in
the Yegua, Miocene, and Frio increase the high side reserve potential. In the
surrounding fields, the potential to stack productive reservoirs in multiple
sections makes this an attractive place to drill.

The shallower Frio objective has a conservative reserve potential of 0.375 bcf
and a high-side potential of 1.2 bcf. The deeper Yegua horizon has an estimated
reserve potential of between 0.52 bcf (conservative) to 1.56 bcf (high-side). As
the planned well depth is 7,500 ft, drilling time is scheduled to be less than
one month.

Six additional prospects are located on the Caddo area of mutual interest 
('AMI') which covers around 1,175 acres. The locations target comparable Yegua
and Frio anomalies, but Miocene objectives are also present in all of them.
Success in Caddo #1 would make these very attractive drilling targets. As these
are not subject to the farm-in terms, they would have a higher value to
Pantheon.

Caddo #1 is the third well to be drilled on Project Wharton, a farm-in concluded
with Everest in June 2006. Pantheon is paying 25% of the drilling costs to earn
an 18.75% working interest in Caddo. In the event of success, there is easy
access to infrastructure.

Project Wharton provides Pantheon with low risk plays to balance the higher risk
/reward plays at the PI Project Area. Overall exploration risk for the Project
Wharton prospects is regarded as low, ranging from 50% to 80%. This compares
with 15% to 36% for the deep JV of the PI Project Area.

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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