Pantera Petroleum, Inc.
OTC Bulletin Board : PTPE

Pantera Petroleum, Inc.

April 29, 2008 09:19 ET

Pantera Petroleum Signs Agreement to Acquire Five Re-Entry Wells in Texas

AUSTIN, TEXAS--(Marketwire - April 29, 2008) - Pantera Petroleum (OTCBB:PTPE)(FRANKFURT:4PP) is pleased to announce it has signed a letter of intent with Lakehills Production, Inc. ("Lakehills") to purchase new oil, gas, and mineral rights consisting of five re-entry wells (the "Baker Ranch") on 3,238 acres in the West Gomez field in Pecos County, Texas. Four of the five wells were drilled in the early 1970's and were completed and produced in the Ellenburger formation at an average depth of 22,000 feet. Combined production from the four wells prior to abandonment due to low gas prices in the early 1980's was 47.9 billion cubic feet (BCF) of gas, with the wells each averaging over 1.4 million cubic feet of gas per day (MMCFGPD). The fifth well's initial production was 5.6 MMCFGPD before being plugged for low gas prices. Today's gas prices, currently averaging between $9 and $11 per MCF of gas, give compelling reason to re-enter the subject wells.

The Property

The Baker Ranch leasehold acreage is located in the prolific West Gomez field, which has produced in excess of 5 TCF of gas over the past 40 years. Upon completion of the purchase, Pantera will earn up to an 80% working interest in the wells, the same being a 60% net revenue interest. Soon after the completion of the transaction, Pantera intends to re-enter and re-complete wells that are currently plugged. Four of the wells are fully plugged with one well being partially unplugged. All of the wells were plugged with cement with the casing remaining intact in the ground. The property is surrounded by adjacent properties operated by ExxonMobil, ConocoPhillips, Chevron, Hunt Oil Co., Chesapeake Operating, and Cimarex Energy.

Reserve Base and Production

Based on decline curves and production rates at abandonment, we estimate 12.2 BCF of potential remaining Ellenburger reserves with an initial production rate of 1.5 MMCFGPD per well, equating to 7.5 MMCFGPD or greater for the project. Additional uphole potential exists in each well, proven by logs and drilling shows, as well as offset production in the area. We estimate an additional 51 BCF of gas, worth roughly $561 million in the ground at today's market prices, to be produced from the Fusselman, Devonian, Atoka, Lower Wolfcamp, Middle Wolfcamp, Upper Wolfcamp 2, and Upper Wolfcamp 1.

Pantera Petroleum's CEO, Chris Metcalf, stated, "We are excited about this acquisition as it builds upon our platform of lower risk, cash flow production assets in the U.S. We like re-entry wells as they have proven production histories and massive undeveloped reserves in multiple geological pay zones. These assets were shut-in when gas prices were very low, but can now be highly profitable. We can very quickly obtain solid, immediate cash flow upon re-entry of the existing production zone, while obtaining the opportunity for significant production increases by targeting additional production zones with today's technology. The prolific West Gomez field will continue to be a meaningful area of interest for our future acquisition plans."

About Pantera Petroleum

Pantera Petroleum, Inc. is a publicly traded oil and gas exploration company (OTCBB:PTPE)(FRANKFURT:4PP) headquartered in Austin, TX with operations in Midland, TX, Pecos County, TX, and Asuncion, Paraguay. Our mission is to explore and discover new energy fields in North and South America. Our North American assets include a 10% working interest in the Block 83 84 Project in the West Gomez field in Texas, with combined potential reserves of 27 BCF of gas and 50,000 barrels of oil. In South America, Pantera has rights to five concessions in northern Paraguay, covering nearly 4 million acres, with combined potential reserves of 6.7 TCFE of gas or 1.1 billion barrels of oil.

Further Information

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

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. Closing of the transactions described above is subject to a number of terms and conditions, including the satisfactory completion of each party's due diligence investigations. 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.

Readers are cautioned not to place undue reliance on the forward-looking statements made in this Press Release. In evaluating these statements, you should consider the risks discussed, from time to time, in the reports we file with the US Securities and Exchange Commission.

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