Operational Update

RNS Number : 2078C

Pantheon Resources PLC

21 February 2022

 

21^st February 2022

Pantheon Resources plc

Operational Update  

Pantheon Resources plc ("Pantheon" or "the Company"), the AIM-quoted oil and gas company with a 100% working interest in all of its oil projects spanning c. 153,000 acres adjacent and near to transportation and pipeline infrastructure on the Alaska North Slope, is pleased to provide the following update:

Operational Update - Talitha #A

The Company is pleased to announce that flow testing operations have now been completed on the Slope Fan System ("SFS"), a Brookian aged horizon, at Talitha #A. The Company perforated two separate five foot ("ft") intervals at 8160 - 8165 ft and 7855 - 7860 ft, within two distinct circa 50 ft sand bodies or 'lobes'. The two intervals were stimulated and flow tested together, producing high quality circa 35 to 38 degree API oil and averaging 45 barrels of oil per day ("BOPD") over a three day test period. 

On the final day of testing, the well was flowing at a sustained rate of approximately 32 BOPD from this combined 10 ft of perforations which is highly encouraging given production wells on the Alaska North Slope are drilled horizontally, which would typically result in materially higher flow rates.

This is the first indication of producible oil in the Slope Fan on Pantheon's acreage and has significant implications for future resource and recoverable oil estimates. The two SFS lobes are in two distinct trapping systems and suggest very good reservoir properties. The Company's initial analysis suggests that the deeper of the two lobes extends below the Alkaid Deep anomaly and will be assessed in the upcoming Alkaid #2 well, planned for summer 2022. The Company has not previously provided guidance on potential resource for the SFS.

The Company is greatly encouraged by these results and will provide an estimate of resource and recoverable oil in due course, once analysis is completed and the Talitha test results are fully integrated into resource assessments and future appraisal plans.

Theta West #1 Operational Update

After casing was set, an error by a third party service company contractor working on the rig floor has delayed testing operations. A cement stage tool was improperly configured, placing cement inside the casing rather than outside casing as intended. The Company will undertake work to remove cement from within the casing, prior to performing a remedial cement squeeze job. The Company expects this work to be completed over the course of this week prior to conducting flow testing operations of the Basin Floor Fan. The issue has cost time and money, however, the Company does not believe this has compromised the reservoir potential in any way.

Jay Cheatham, CEO, said "Once again we have an excellent result from the Talitha #A testing. Similar to the Basin Floor Fan ("BFF"), we had two goals in testing the SFS: (i) to prove we had moveable oil, and (ii) to prove high quality oil. We have achieved both of these. I was on location in the flow back trailer and collected the crude personally, which is indeed light and sweet. We exceeded original expectations with the flow rates achieved from these two sand bodies. We now believe the Slope Fan extends east near the Dalton Highway giving us additional potential resource developable from gravel along the highway. The issue encountered at Theta West typify some of the frustrations in drilling and completions; thankfully we had a contingency built into our planning."

Bob Rosenthal, Technical Director, said "This is fantastic result particularly given we only perforated two, five foot intervals in a vertical well. This test confirms light oil in the SFS which is not accounted for in any of our resource assessments. As we do further work, we expect an upgrade to our resource numbers for these results. Encouragingly, our testing to date suggests that we could be in the sweet spot for finding light oil on the North Slope. So far, we have tested light oil in four hydrocarbon accumulations: (i) the Alkaid (deep) anomaly, (ii) the Lower BFF, (iii) the Slope Fan System upper lobe, and (iv) the Lower Slope lower lobe."

Further information:

Pantheon Resources plc	[phone]
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate Development
Canaccord Genuity plc (Nominated Adviser and broker)
Henry Fitzgerald-O'Connor,  James Asensio	[phone]
Blytheweigh
Tim Blythe, Megan Ray, Alice McLaren, Madeleine Gordon-Foxwell	[phone]

Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas company focused on several large projects located on the North Slope of Alaska ("ANS"), onshore USA where it has a 100% working interest in 153,000 highly prospective acres with potential for multi billion barrels of oil recoverable. A major differentiator to other ANS projects is its close proximity to transport and pipeline infrastructure which offers a significant competitive advantage to Pantheon, allowing for materially lower capital costs and much quicker development times. The Group's stated objective is to create material value for its stakeholders through oil exploration, appraisal and development activities in high impact, highly prospective conventional assets, in the USA; a highly established region for energy production with infrastructure, skilled personnel and low sovereign risk. All operations are onshore USA, with drilling costs materially below that of offshore wells.

For further information on Pantheon Resources plc, see the website at:  www.pantheonresources.com

The information contained within this Announcement is deemed by Pantheon Resources PLC to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement. 

Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to discovered and undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.

In accordance with the AIM Rules - Note for Mining and Oil & Gas Companies - June 2009, the information contained in this announcement has been reviewed and signed off by Jay Cheatham, a qualified Chemical & Petroleum Engineer, who has over 40 years' relevant experience within the sector. 

Glossary

API -  API gravity is a commonly used index of the    density    of a    crude oil    or    refined products . API stands for the  American Petroleum Institute , which is the industry organization that created this measure. A crude oil will typically have an API between 15 and 45 degrees. Higher API indicates a lighter (lower density) crude. Lower API indicates a heavier (more dense) crude. Generally, lighter (high API) crudes are more valuable because they yield more high-value light products when run through a    refinery . Light crude is typically in the 35-45 API range, which includes most of the highest valued crudes such as    Brent    and    WTI .

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