US E&P company Pantheon Resources (PANR:AIM) is down 1% at 28.45p despite commencing testing on its VOBM#1 well in Polk County, Texas.

This may reflect some impatience for a result which is likely to have a significant bearing on the future destiny of the company – work has been delayed by weather and the availability of equipment - although investors will only have to wait at most another couple of weeks.

Pantheon is targeting oil in the Eagleford sandstone formation – which has been highly productive in the nearby Double A Wells field. You can read more on Shares thoughts on the company here. The £55 million cap is also in the process of drilling the VOS#1 well in neighbouring Tyler County which will test both the Eagleford and a lower risk gas and liquids target in the Austin Chalk.

Mirabaud says: ‘Everybody hold their breath. Pantheon Resources has commenced flow test operations on its first well in Polk County, VOBM#1. The results, due out in 10-14 days, are make or break event for the company, which secured backing from investors in 2014 (in a $30 million raise) to increase its acreage footprint and drill two wells.

‘The test will target the Eagleford/Woodbine sandstone, identified from log data as a potential ‘conventional’ reservoir target, with a successful test seen as the key to determining the commercial potential. Pantheon believes the prospect could hold gross resources of 53 million barrels of oil equivalent (mmboe) (37 mmboe net).’

Issue Date: 08 Oct 2015