Penn Virginia has agreed to acquire USD 86 million worth of Eagle Ford assets, the company announced on Tuesday.

Pantheon encounters pay at Eagle Ford

Eagle Ford

HOUSTON, January 12, 2016 – Pantheon Resources has hit pay while testing its oil well in Texas’ Eagle Ford, but was unable to get production numbers due to a blockage, the UK company said in a Tuesday company statement.

The company encountered 32.6 metres of net pay when its VOS1 reached a depth of 4,600 metres in the Eagle Ford sandstone.

Initial flow rates showed high rates of natural gas and 30-degree-API gravity oil. The findings indicate a well with an ultimate recovery of about 3 million boe.

Further testing operations on gas production, oil production as well as flowing tubing pressure have pointed to a blockage, most likely caused by heavy mud, according to the statement. The company has not been able to report production numbers due to the blockage.

“Similar blockages are known to have occurred in the analogous, nearby Double A Wells field, and were subsequently successfully remedied. Even at the reduced flow rates after the blockage, the well is still flowing commercial quantities of hydrocarbons,” Pantheon CEO Jay Cheatham said in the statement.