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Pantheon Resources (PANR)

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Thursday 24 March, 2022

Pantheon Resources

Theta West #1 Testing Update

RNS Number : 8387F
Pantheon Resources PLC
24 March 2022
 

24th March 2022

 

Pantheon Resources plc

Theta West #1 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:

Theta West - Testing Update

Testing of the Lower Basin Floor Fan ("LBFF") at the Theta West #1 location has commenced with the well flowing high quality oil to surface which the Company believes supports, and likely exceeds, its pre-drill resource estimates of 1.2 billion barrels of oil (recoverable). As with previous testing operations on the North Slope, the primary objectives of the LBFF test was (a) to confirm oil quality, (b) to confirm oil movability, and (c) to confirm reservoir deliverability. All of these objectives were successfully achieved in this initial testing operation. The Company has now suspended testing of the LBFF formation due to the onset of a severe storm in the area.

After the initial encouraging oil flow rates, the Theta West #1 well was shut in due to the arrival of the storm. The well flowed high quality, light 35.5-38.5 degree API gravity oil at rates that averaged over 57 barrels of oil per day ("BOPD") with peak rates exceeding 100 BOPD over 2.5 days. Over the final day prior to shut-in the well was averaging approximately 59 BOPD.  Significantly, this rate meets the Company's pre-drill expectations, confirms the presence, quality, and mobility of light sweet crude oil. Testing operations are now suspended due to the extreme weather, with a possibility that testing may resume if the conditions improve before the conclusion of the Arctic operating season.

Theta West #1 encountered 950 feet ("ft") of oil in the LBFF of which only three small sections of this large zone were tested. The three, 10 ft perforations were conducted at the following depths: 8,065 - 8,075ft, 7,745 - 7,755 ft and 7,595 -7,605 ft, which were all successfully stimulated and comingled into one test across these zones. Approximately 40% of the testing fluid was recovered before testing was suspended. The ultimate flow potential is better assessed after recovery of a greater portion of the testing fluid, which was not possible in this case due to bad weather halting operations in the area. Importantly, the results confirm the extension of the oil accumulation over a 10.5 mile distance from Talitha #A to Theta West.

The Theta West LBFF has now been proven as an extensive oil reservoir that Pantheon can image and map with high confidence on its proprietary 3D seismic data. As for all new oilfield discoveries, ultimate commerciality will require long term production testing.

Jay Cheatham, CEO, said: "As was the case with our testing operation on the Shelf Margin Deltaic at Talitha, extreme weather conditions have interrupted testing Theta West. Crucially however, we have collected enough data to confirm our expectations that we have discovered, and now appraised, an extensive resource which we believe meets or exceeds our pre-drill estimates."

"We are very excited by this result at Theta West. This well is a successful 10.5 mile step-out from the LBFF oil bearing interval at Talitha. The test result confirms a vast oil resource and also confirms our geologic model. Its proximity to infrastructure gives Pantheon a strategic advantage over other greenfield projects."

"After confirming the oil resource over this large area, our focus will now shift to proving the deliverability of production wells which will commence with the spudding of Alkaid #2 horizontal well, estimated for July 2022. By utilizing a gravel pad immediately adjacent to the Dalton Highway, Pantheon will operate without being limited to winter operations. This allows for a horizontal well with appropriate stimulation, long-term flow testing and, if successful, oil sales. We are confident of deliverability and excited for the next step in our drilling programme."

"I want to congratulate the entire team for performing simultaneous operations in this severe environment. This is a noteworthy accomplishment for any operator on the North Slope. I remind shareholders that we have a 100% working interest in all of our projects which are also located onshore USA, in an area of low geopolitical and sovereign risk; something that is of great importance in the context of recent global events."

Bob Rosenthal, Technical Director, said: "The Theta West result and testing operations at Talitha #A have confirmed our geologic model and we are now on the path to unlocking an enormous basin play. As previously announced, we estimate the Theta West resource is in excess of a billion barrels of recoverable oil and after encountering better reservoir parameters in a 950 ft oil column, we expect this number to potentially increase."

"All these flow tests were designed to prove oil quality and deliverability in a vertical well. Our reservoir engineers will be able to model the potential flow rates from specifically designed horizontal production wells, which is now industry standard practice on the North Slope. With the oil discovered in the Shelf Margin Deltaic and Slope Fan System at Talitha, the Brookian section at Alkaid, and the LBFF at Theta West,  Pantheon has an opportunity to develop a number of large, discreet oil accumulations in an established oil province adjoining export infrastructure, which we believe is unique. What a great season this has been. We intend to host a Webinar in the coming weeks to share our results and will provide details in due course." 

 

 

Further information:

 

Pantheon Resources plc

+44 20 7484 5361

Jay Cheatham, CEO


Justin Hondris, Director, Finance and Corporate Development


Canaccord Genuity plc (Nominated Adviser and broker)


Henry Fitzgerald-O'Connor,  James Asensio, Gordon Hamilton

+44 20 7523 8000

BlytheRay


Tim Blythe, Megan Ray, Alice McLaren, Madeleine Gordon-Foxwell

+44 20 7138 3204

 

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 hydrocarbons 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. Actual future results could differ materially from estimates provided due a number of conditions such as commodity prices, political, environmental or regulatory developments, reservoir performance, technical and operating factors, future drilling results and technical analysis and other factors.

 

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.

 

ENDS

 

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