AUSTIN, TEXAS -- (Marketwire) -- 08/26/08 -- Pantera Petroleum, Inc. (OTCBB: PTPE)(FRANKFURT: 4PP) (the "Company") is pleased to announce it has acquired a 43.21% working interest and a 32.41% net revenue interest, in 21 leases across 651 acres in the West Gomez Field in Pecos County, TX ("Baker Ranch Well 80") for a cash purchase price of $350,000. Pursuant to its agreement with Lakehills Production, Inc. ("Lakehills"), the Company has the further option to acquire additional working interest in Baker Ranch Well 80 up to a 95% working interest and a 71.25% net revenue interest, along with up to 95% working interests in another four wells known as Baker Ranch Sections 74, 77, 78, and 81 in 2,587 acres for a purchase price of approximately $2.2 million.
Originally operated by Chevron USA, Inc., the Baker Ranch 80 Well produced approximately 16.8 billion cubic feet of gas from 1973 until it was plugged in 1992. According to an independent third party reserve report submitted to Lakehills by Andrew Burleson, Petroleum Engineer, Baker Ranch Well 80 has an estimated 13 billion cubic feet of natural gas in proven undeveloped reserves remaining in the Ellenburger formation. This well is located approximately one mile from the Company's Sibley 84 #1 Well, also a re-entry well, that was successfully placed back into production recently this August. The property is surrounded by adjacent properties operated by ExxonMobil, ConocoPhillips, Chevron, Hunt Oil Co., Chesapeake Operating, and Cimarex Energy.
The Baker Ranch wells were producing wells that were professionally plugged when gas prices hit lows in the mid 1980s and the early 1990s. All of the wells were plugged with cement plugs with the casing remaining intact in the ground. The Company's growth strategy targets re-entry wells like this because of the favorable risk/return profile demonstrated by wells that have long production histories and large undeveloped proven and probable reserves.
The Gomez Field was discovered in 1963 when production from the Ellenburger formation was established at a depth of approximately 22,000 feet. The Gomez Field Complex has produced in excess of 5 million barrels of oil and 5 trillion cubic feet of gas from more than 250 wells.
"Building upon our successful Sibley 84 #1 well and remaining wells in our Block 83 84 project, our acquisition of the Baker Ranch Well 80 is another great step forward for the Company," states Pantera Petroleum's CEO, Chris Metcalf. "We are extremely enthusiastic about continuing our growth strategy with the Baker Ranch properties, located in the prolific West Gomez Field, which is a major target for us for future acquisitions. One of the most attractive aspects of Well 80 is that it has already been partially unplugged which should lower our costs.
