Pantera Petroleum, Inc.
OTC Bulletin Board : PTPE

Pantera Petroleum, Inc.

December 04, 2007 13:01 ET

CORRECTION: Pantera Petroleum Enters into an Agreement to Acquire Chaco Basin Concessions in Paraguay

AUSTIN, TEXAS--(Marketwire - Dec. 4, 2007) - A correction is issued with respect to the release issued December 4th at 9:10 AM EST. The stock ticker was incorrectly listed. The correct stock ticker is OTCBB:PTPE. The corrected release follows:

Pantera Petroleum, Inc. (OTCBB:PTPE) (hereafter "Pantera Petroleum") is pleased to announce it has signed an exclusive share purchase agreement to acquire up to 85% of two companies that have 100% ownership rights in five concessions representing approximately 16,000 square kilometers in Paraguay in the Chaco Basin, a well established hydrocarbon area where oil and gas has been produced in Bolivia since the 1920's. These five concessions represent combined potential reserves of 6.7 trillion standard cubic feet equivalent ("TCFE") of gas or 1100 million barrels of oil.

About the Chaco Basin

Northern Paraguay is underlain by extensions of the prolific Chaco Basin, where current production is over 2 billion standard cubic feet ("BCF") per day gas and over 50,000 barrels per day oil in Bolivia and Argentina. Exploration of the Chaco Basin started in the 1920's in Bolivia and through 2006, 475 new field wildcat wells had been drilled in Bolivia and Argentina. A total of 128 fields were discovered, resulting in a 27% success rate. The success rate improved to 51% during 1997-2006. Reserves in Bolivia and Argentina are estimated at 73 TCF gas and 1.9 billion barrels oil contained in 128 fields. Approximately 1.2 BCF gas per day is exported from Bolivia to Brazil in a pipeline built in 1999-2000. Gas is also exported from Bolivia to northern Argentina.

The Chaco Basin extension into Paraguay is divided into two sub-basins, the Curupayty Sub-Basin to the north and the Carandayty Sub-Basin to the northwest. The eastern Chaco basin, including the Curupayty and Carandayty Sub-Basins, is a relatively unexplored frontier region. Outcrops and wells drilled in eastern Bolivia and northern Paraguay show the existence of the same petroleum system active in the sub-Andean trend in the western part of the Chaco Basin.

The Curupayty Sub-Basin has approximately 32,000 square kilometers of prospective exploration area. The Curupayty Sub-Basin is projected to be more oil prone than the main Chaco Basin, due to slightly lower temperature in the source rock. Based on the analogous fields in Bolivia and Argentina, the Curupayty Sub-Basin is projected to contain 1.5 billion barrels oil (if oil is generated) or 9.1 TCFE gas in 36 fields.

The Carandayty Sub-Basin has approximately 25,000 square kilometers of prospective exploration area. The Carandayty Sub-Basin is gas prone, and is projected to contain 7 TCF gas in 28 fields. The main geologic targets are the Carboniferous and Devonian strata, where the majority of the reserves are found in Bolivia and Argentina.

Paraguay is Well Situated

Petroleum and natural gas consumption in Brazil and Argentina continue to expand. According to the U.S. Department of Energy, Brazil is the largest crude consumer with 2.1 million barrels oil per day consumed in 2006 - more than three times the region's second largest consumer Venezuela. Argentina is also increasing its oil consumption, rising 5.5% in 2006, concurrent with its economic recovery. In Central and South America, natural gas is the fastest growing fuel source, with expected demand increasing on average by 2.6% per year, from 4.1 TCF in 2004 to 7.9 TCF in 2030. Brazil accounts for more than 20% of the projected increase in the region's consumption of natural gas in 2030 relative to total consumption in 2004.

As regional players stop investing in Bolivia due to its nationalization program, Paraguay stands to gain from its political stability and favorable economic climate for oil and gas exploration. Given its location to major oil and gas producers, Paraguay is one of the most under-explored regions of the world, with only 27 wells drilled in the Carandayty and Curupayty Sub-Basins in Paraguay. These attractive dynamics have led Pantera Petroleum to take the lead in a major opportunity.

About the Concessions

Curupayty Sub-Basin

Pantera Petroleum has rights to four concessions in the Curupayty Sub-Basin, covering approximately 27% of the prospective area in the Sub-Basin, with total potential reserves of 6.5 TCFE if gas or 1080 million barrels if oil. The concessions are named Pantera (3000 square kilometers), Toro and Bahia Negra (combined 7200 square kilometers), and Cerro Cabrera (5170 square kilometers). They are also located in the eastern extensions of the prolific Chaco Basin, where, in Bolivia and Argentina, significant reserves of gas, oil and condensate have been discovered. The tracts are prospective for oil and gas in the same stratigraphic zones that produce in Bolivia and Argentina.

The Pantera Concession, 3,000 square kilometers in area and located on the border with Bolivia, is highly prospective and should yield excellent prospects and leads. It is located in the middle of the Sub-Basin where sand quality should be excellent. This is confirmed by the Phillips Pantera 1 well, drilled in 1995. It encountered excellent sand development in the middle and lower Carboniferous formation. Phillips had identified two prospect leads on what is now the Pantera license, and there is sufficient additional area within the license to yield even more prospect leads.

The Toro tract, 2,400 square kilometers in area, is located in the Sub-Basin in north central Paraguay. The Bahia Negra tract, 4,800 square kilometers in area, is located at the southern end of the Sub-Basin in north central Paraguay. The Toro and Bahia Negra tracts are near two wells with oil and gas shows and are well located in an area prospective for oil or gas production.

The Cerro Cabrera Block, 5,170 square kilometers in area, is located in northern Paraguay on the Bolivian border. It is located directly across the Izozog High from the Mendoza 1-R well that tested gas from two zones and 240 kilometers from the nearest producing fields in Bolivia.

Carandayty Sub-Basin

Pantera has the Tagua Concession of 300 square kilometers covering 1.2% of the prospective area in the Sub-Basin with potential reserves of 0.2 TCFE. The Tagua tract is located in the Sub-Basin on the border with Bolivia. It is approximately 20 kilometers from a Paraguayan well (Mendoza 1-R) that tested gas from two zones and approximately 110 kilometers from the nearest producing field in Bolivia.

Commenting on the acquisition, Christopher Metcalf, President and CEO of Pantera Petroleum states: "We are delighted to acquire assets of this caliber and potential to our company. The Chaco Basin is one of the most prolific production areas in South America, and Paraguay is one of the most under-explored regions of the world. Should we make a discovery, Paraguay is a central point from which to supply oil and gas to Brazil, Argentina, and Chile. We are very pleased to develop this asset and to contribute to the energy vitality of the entire region."

Exploration Plans

Pantera Petroleum is designing an exploration program to cost effectively evaluate the concessions. This will be accomplished through the proper mix of seismic and drilling. Prospects must be identified and prioritized. The strategy is to schedule the drilling so that information from the first well may be incorporated in the execution of the remaining program.

The Curupayty already has about 2900 kilometers of 2D seismic with approximately 1800 kilometers of 1970 vintage data and 900 kilometers of more recent 1993 data. Three wells have been drilled very close to the prospective acreage. Pantera Petroleum is currently seeking to acquire all available data on the concessions, including vintage seismic data. We are in discussions with seismic reprocessing firms to reprocess approximately 900 kilometers of existing 2D seismic with modern computer processing technology. The reprocessed data, along with well, surface, and cultural information, will be loaded and mapped in an SMT project. Relevant horizons and maps will be made to show hydrocarbon systems and prospects. Prospect sizes will be estimated using SPE, WPC, and AAPG guidelines and a probabilistic range will be determined for each major prospect as well as a mean outcome for economics. Once completed, we will plan and conduct a tender bid for a new 2D seismic acquisition program of about 1000 kilometers of new 2D data.

The exploration plan will allow proper seismic evaluation of the concessions before drilling begins. An initial six well exploration program is contemplated. These wells are scheduled to follow reprocessing of existing seismic and acquisition of new seismic. The strategy is to schedule the drilling so that information from the first well may be incorporated in the execution of the remaining program. Two appraisal wells are forecast within the initial exploration program. If any of the exploration wells are successful, appraisal wells will be drilled. Average well depth is forecast at 2500 meters, but may vary depending on position in the Sub-Basin.

Further Information

Shareholders and prospective investors are encouraged to visit Pantera Petroleum's website: and download Pantera Petroleum's Investor Summary. Please feel free to call investor relations toll-free at 1-866-511-1147 to receive a full corporate investor's package.

About Pantera Petroleum

Pantera Petroleum, Inc. is a publicly traded oil and gas exploration company (OTCBB:PTPE) headquartered in Austin, TX with operations in Asuncion, Paraguay. Our mission is to explore and discover energy supply in North and South America. Our strategy is to acquire and explore known, but under-explored, production areas with the most modern exploration and discovery techniques. Pantera Petroleum Inc. has rights to five concessions in northern Paraguay, covering nearly 16,000 square kilometers, with combined potential reserves of 6.7 TCFE of gas or 1100 million barrels of oil.

On behalf of the Board of Directors


Chris Metcalf, President and CEO


Legal Notice Regarding Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.

Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, successful closing of the rights to explore by the relative governing bodies, and our ability to participate in the exploration of, and successful completion of development programs on, the relevant concessions. Additional information on risks for the Company can be found in filings of the Company with the US Securities and Exchange Commission.

Contact Information