Alkaid #2 update

RNS Number : 5138P

Pantheon Resources PLC

10 February 2023

 

10 February, 2023

Pantheon Resources plc

Alkaid #2 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:

Well cleanout - Alkaid #2

The Nordic Calista #2 rig contracted for the Alkaid #2 clean out operation has successfully pulled the tubing and packer and has now moved off the well head. An SLB (in October 2022 Schlumberger announced a change of name to SLB) coiled tubing unit has subsequently moved onto the well head to commence a cleanout of the sand blockage which is scheduled to occur over the weekend.  Once the coiled tubing unit has cleaned out the sand blockage, it will move off location and the Nordic Calista #2 rig will move back onto the well and replace the production tubing prior to the recommencement of long term production testing immediately thereafter.

Commencement of these operations was delayed due to poor weather and a number of electrical and hydraulic issues with the rig which are now all resolved.

Jay Cheatham, CEO, said : "I'm pleased we were able to resolve several issues and successfully reach this point in the clean out process. We have done extensive analysis, supported by 3^rd party experts, and were able to learn much about the reservoir and the liquids production during this hiatus in testing. We are less than 40% through the recovery of the frack fluid (well cleanup) and I'm confident that Alkaid #2 will ultimately prove a commercial success. Nothing we have seen to date diminishes our confidence in our projects."

Bob Rosenthal, Technical Director, said: "After a long wait to secure, and then iron out a number of niggles on the rig, it's great that we're finally in a position to clear out the sand blockage and resume flow testing over the coming days. Whilst we're optimistic, as always we remind shareholders that a definitive assessment of the well cannot be made until flow testing operations have been completed."

"We plan to have a technical webinar associated with our Annual General Meeting next month and will advise details for that shortly. We expect Alkaid #2 to have cleaned up by then which will provide a lot of new data to enable a far more robust and representative assessment of Alkaid#2 than the reported testing data to date. We will also present our latest assessment of the results and the impact on our much larger Theta West and Shelf Margin projects. Additionally, we will update on the progress of the proposed Independent Expert Reports for both the Theta West and Alkaid projects and of the data room for our farm out process."

-ENDS-

Further information, please contact:

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 Gordon Hamilton	[phone]
BlytheRay
Tim Blythe, Megan Ray, Matthew Bowld	[phone]

-Ends-

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.

 

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