Pantheon Resources finalizes agreement for East Texas gas dispensation plant

Pantheon Resources PLC, London, has recently confirmed an agreement with Kinder Morgan Inc. for subsidiary Kinder Morgan Treating LP, Houston, in order to put up and operate a 15-MMcfd natural gas processing plant in Polk County, Tex., that will process production from onshore wells in East Texas jointly owned by Pantheon and partner-operator Vision Resources LLC, also of Houston.

With the pad, tap-in points, permits, and pipeline procurement by now finished, installation of Vision Operating Co. LLC’s dedicated Polk County plant is planned to commence in early August, Pantheon said.

Once it will be completely custom-built, the gas plant originally will route output from the partnership’s VOBM No. 1 and VOBM No. 3 wells in Polk County, both of which are targeted for first production by mid-September.

Also, the plant will route feed from the VOBM No. 2H well, also in Polk County, pending future testing and begin of production from that well in the future, according to Pantheon.

While the partnership beforehand endeavor to drill VOBM No. 2H horizontally, Eagle Ford sandstone at the location was too hard and rough for the procedure, leading to a series of equipment failures as well as cost and agenda overruns that forced suspension of the well in September 2016, Pantheon said in a investor report.

Along with proclaiming the gas plant, Pantheon also inveterate it has booked a rig, crew, and connected equipment to hydraulically fracture VOBM No. 2H to remediate skin damage believed to have occurred during the previous horizontal drilling campaign. The company also said that pending the nonexistence of third-party delays, hydraulic fracturing at the well is planned to begin in August.

The earlier testing on a 12/64-in. choke showed VOBM No. 1’s flow rate at about 1,500 boe/d, while testing for VOBM No. 3 on a 10/64-in. choke indicated rates from 244-740 boe/d, according to a May 27 presentation from Pantheon.