Talitha #A Testing Update

RNS Number : 8139A

Pantheon Resources PLC

07 February 2022

 

7^th February 2022

Pantheon Resources plc

Talitha #A Testing 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:

Talitha #A - Flow Testing the Basin Floor Fan 

The Company is pleased to announce that testing operations have now been completed on the Lower Basin Floor Fan ("BFF"), a Brookian aged horizon. Three separate 10 feet ("ft") intervals were perforated over 370 ft out of 600 ft of gross section, at 9405 to 9415 ft, 9205 to 9215 ft and 9045 to 9055 ft. These three intervals were individually stimulated and flow tested, producing high quality c. 35 to 39 degree API oil and averaging 73 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 40 BOPD.  Encouragingly, the bottom hole pressure is near to the reservoir pressure, thus providing an indication of the production potential of this portion of the oil accumulation, which is at the distal limits of the field. Future development wells would all be drilled horizontally and stimulated with multiple stage fracs, meaning that flow rates are expected to be many times higher.

The Company is greatly encouraged by these results given the optimal location for any development of the BFF is in a structurally higher position which is presently being drilled and tested at Theta West, 10.5 miles to the north west, where the BFF is the primary objective.  

As a reminder, Talitha #A is a vertical test well drilled in 2021 which was located to target the Shelf Margin Deltaic ("SMD") horizon as the primary target, with other horizons as secondary targets given the well's sub optimal location for those reservoirs. Notwithstanding, the well has encountered several independent oil horizons, all of which were confirmed to be oil bearing; (i) the Shelf Margin Deltaic, (ii) the Slope Fan System, (iii) the Upper Basin Floor Fan, (iv) the Lower Basin Floor Fan, and (v) the Kuparuk. Independent 'Volatiles Analysis' undertaken by Advanced Hydrocarbon Stratigraphy / Baker Hughes during drilling Talitha #A took 416 cuttings over a 3700 ft section spanning these five horizons mentioned above, with every single sample confirming the presence of oil.

Theta West #1 - Operations Update

Theta West drilling is on track and on budget and is expected to reach total depth either today or tomorrow.  Future drilling and testing results will be announced as received.

Jay Cheatham, CEO, said: "This is a great result and better than we had expected at  this location, given that the Talitha #A well was positioned to prioritize the Shelf Margin Deltaic horizon. The BFF horizon in this well is in a downdip distal location with suboptimal reservoir qualities, over 10 miles from the ideal location. The objective of this test was not about flow rates; it was about confirmation that we had both movable and high quality light oil. We have achieved both of these objectives which is extremely encouraging for the entire BFF system. As is typical in Alaska, the future development of oil in BFF would be via horizontal wells which we anticipate being located in a structurally higher position, where superior reservoir parameters are expected compared to those encountered at this location.

"Whilst these flow rates exceeded our expectations, we must caution that, although this is very positive for Theta West, it does not guarantee success. We must wait to complete the drilling and for flow test results from the Theta West #1 well. However, we remain cautiously optimistic. The team is now moving up the hole at Talitha #A to continue our testing operation in the shallower zones."

Bob Rosenthal, Technical Director, said: "I am delighted with this result. As I recently stated in our webinar, the objective had never been about the flow rate in this location - it was about proving the movability of the oil and the quality of the oil - and we've succeeded on both objectives. The Talitha #A location sits at the edge of our conceptual development scenario for the targeted potential of 1.2 billion barrels of oil recoverable resource in the Lower Basin Floor. This is very promising given that we have mapped the BFF extending updip, all the way beyond Theta West. This means that, if drilling and testing is positive at Theta West, the implications for Pantheon are very significant indeed."

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. 

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. 

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.

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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