Pantheon Resources - US Gas Play

Preliminary results of the first stage of this programme have been received.
This entailed cutting and retrieval of a conventional core in the shallowest of
three potential zones. A drillstem test was also conducted in this zone. The
results from this test are consistent with the Joint Venture's pre-drill view
that these potential reservoirs are tight and water wet. Preliminary
determination of porosity and permeability show that this zone is unlikely to be
productive as a reservoir. Drilling to the next planned core point is now
underway.



failure at 1st zone consistent with pre-drill view