Pantheon Resources plc has signed gas processing facility agreement contract with Kinder Morgan to install and operate a 15mmcf/d capacity gas processing facility in Polk County.
Instillation of the facility is expected to commence in early August 2017 with targeted first production by mid-September 2017 from VOBM#1 well and VOBM#3. If successful, VOBM#2H will also be hooked up for production following testing. Based upon modelled well data, Pantheon believes it should be able to achieve low operating and transportation costs.
The pad, tap in point, permits, and pipeline procurement have already been completed, and rights of way have been agreed and paid for.
At full capacity VOBM#1 and on the same terms, the 15mmcf/d gas processing facility running at maximum throughput at the current pricing is modelled to generate over USD 1,500,000 per calendar month of free cash flow net to Pantheon.
The Company has announced that a rig, frac crew and related equipment to undertake the planned frac of the VOBM#2H well has been booked and operations are estimated to commence in August 2017.
Arrangements for the procurement of a suitable drill rig for the sidetrack of the VOBM#4 well are presently underway.