Pantheon Resources has acquired an additional 8% working interest in the West Double A and West West Double A prospects located in Polk County, Texas, the company said in an operations update July 19.
Upon completion of the acquisition, Pantheon's working interest in these two prospects will increase from 50% to 58%. Pantheon's working interest in its Tyler County prospects remains unchanged at 50% and its working interest in New Prospect E remains unchanged at 25%.
According to news release, purchase consideration for the 8% working interest comprises an upfront cash payment of $6.5 million, and an additional 20% of the drilling and completion costs of the VOBM 2H and VOBM 3H wells, estimated to be between $1 million and $1.25 million per well.
Pantheon said it will benefit from an accelerated payback mechanism whereby it will receive a 2.5x uplift on production revenues until such time as the acquisition cost has been recouped, at which point revenues will revert back to an 8% revenue interest.
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