Eureka Project - Fiume Tellaro Permit

 Panther Resources Corporation was awarded an exploration license on 186,000 acre permit named “Fiume Tellaro” by L'assessore all'Industria della Regione, Marina Noe' the regional authorities in Palermo, Italy on March 22, 2004.  Sicily is ideal for oil and gas exploration and development with the new pro-business and honest government support, with only a 7% royalty and 39% corporate tax, with a supporting infrastructure of roads, pipelines and markets, with an educated and experienced workforce, and with an inviting climate – physical, business and cultural.   

The Eureka Gas Field, as first recognized and mapped by Panther’s staff, is a broad stratigraphic trap in Triassic Noto dolomite reservoirs at an average depth of about 2,000 meters and completely covers the permit area.  These reservoirs are sourced and sealed by the Streppenosa and Noto black shales and pinch out updip along the south west flank of the Monte Lauro high.  The Noto/Streppenosa package also sources and seals two giant oil fields immediately downdip. The Ragusa (1954) and Gela (1956) Oil Fields are both structural anticlines with about 180 million barrels oil recoverable per field from the slightly deeper Gela formation dolomites.

The gas market in Sicily and for this particular area is very good.  A major pipeline with significant spare capacity crosses the permit in two places and connects the field to the whole infrastructure of Europe.  Recent legislative changes have caused the Italian gas pipelines to reorganize as open access carriers.   Gas is currently selling for about $4.60 per MCF in three nearby fields. 

Drilling operations should commence in 2004 with three wells drilled and/or re-entered by year-end.  The 2200-meter deep wells pose no unusual problems, as they are normal pressure, sweet gas, near highways, and in open pastures or fields with no environmental problems.  An Environmental Impact Assessment Report, which includes the drilling, completion and long term testing of the first three wells, has been approved by the Government.