Pantheon Resources - Resource upgrade - Alkaid prospect
Pantheon Resources plc
Resource upgrade - Alkaid prospect
A CEO Q&A Webcast will be available at 1130 British
Alkaid project: P50 Technically Recoverable Resource upgrade
As previously announced, the Alkaid well was confirmed as an oil discovery in the primary target, the Brookian ("zone of interest" or "ZOI") at c.8,100ft depth, flowing 80-100 bopd of high quality, light oil from a 6 foot perforated interval (within a 240 foot interval of net pay) during testing. This result is considered of great importance because the Brookian ZOI is the same formation that is at the heart of the major Alaskan discoveries over recent times. Pantheon has a large family of other Brookian prospects on its acreage. Notably, the result has confirmed the efficacy of Pantheon's 'High Tech Geophysics' analysis in modelling the Brookian, important because the application of High Tech Geophysics has been central to those recent major Brookian discoveries in
Alkaid was drilled as a vertical test well with the objective of verifying the presence of the oil reservoir and gathering data and was not drilled to maximise production from this wellbore. The well is on the edge of the reservoir and seismic clearly shows improved reservoir characteristics moving towards the heart of the reservoir. Future development wells will be drilled horizontally and fracked as is typical for the region, which should result in vastly improved flow rates than that of the test well.
Since testing the well, analysis by the Company has been ongoing. Petrophysical analysis has now been completed and the Company is pleased to provide the following conclusions from this analysis:
Please note that the estimates below are Company estimates and do not imply "resources" under Petroleum Resources Management System.
1. The major geological parameters assessed in Alkaid all exceeded pre-drill analyses.
2. The Alkaid and Phecda projects have been remapped, which included a merging of additional 3D seismic shot subsequent to drilling. Remapping has concluded that both Alkaid and Phecda are now part of the same structural accumulation. Accordingly, Phecda has been upgraded from exploration to appraisal status with a resultant reduction in risk.
3. Oil in place ("OIP") - the Alkaid and Phecda combined OIP has been upgraded by the Company by approximately 50%, increasing from 595 million barrels of oil ("mmbo") to 900 mmbo.
4. Recovery factor ("RF") - the RF for Alkaid and Phecda has increased from 10% pre-drill to a range of 10-15%. It is noted that secondary recovery techniques such as water flooding have been successfully applied to other Brookian accumulations in
5. P50 Technically Recoverable Resource - combined from Alkaid and Phecda has been increased by the Company from 59 mmbo to 90-135 mmbo.
6. Future development wells will be drilled horizontally and fracked. The Board believe that, in a success case, a modelled P50 well is estimated to have an EUR (Estimated Ultimate Recovery) in the range of 1.5 - 2.5mmbo and an estimated potential maximum flow rate per well exceeding 1,500 barrels of oil per day.
7. Development of the Alkaid/Phecda project benefits tremendously, both financially and operationally, from its location immediately adjacent to and underneath the
8. The data room for Alkaid/Phecda is nearly complete and work is underway to commence formal farmout discussions. Over
9. The Alkaid/Phecda development opportunity is compelling and the Company has already been proactively approached by parties making enquiry about possible opportunities.
10. The Alkaid results have also increased confidence in the Brookian section at Talitha. The efficacy of the High Tech Geophysics in its rendering of the Brookian sequence at Alkaid gives the Company confidence in correlating the High Tech Geophysics in the Brookian section at Talitha. Whilst Pantheon is yet to drill a well at Talitha, the presence of the Pipeline State #1 well on the Talitha acreage is of great importance. That well was drilled in 1988, at a time when drilling capabilities were not advanced as today and when the oil price was c.
11. Owing to the favourable location and the quality of data received, the Company believes the Alkaid/Phecda project could generate NPV's per barrel of oil superior to other Alaskan discoveries made over recent years. The Company's preliminary modelled NPV10 per barrel of oil in the ground range is estimated at
East Texas Update
The main focus of the Company in 2019 has been on
The Great Bear acquisition delivered Pantheon a world class technical and operational team with a deep history in US oil and gas. The new team has commenced a full and comprehensive review of
Under Vision's operatorship, 6 wells were drilled, all of which encountered potentially significant hydrocarbons. Each however, suffered a variety of different operational issues which hampered the success of those wells and masked the underlying potential of those locations. Since obtaining control of Vision earlier this year we have parted ways Vision's operational team, and future operations will be led by our new highly experienced operational team whose performance under challenging conditions at Alkaid was exceptional. As previously announced, because of the varied well bore issues, current wells will continue to have variable production rates with regular interventions to address blockages and other issues and will never be great producers. We are hopeful to improve production through a number of small workovers.
Recent leasing in
"In East Texas things have progressed and our team has already commenced a detailed technical review of the geology and operations. We have acquired operational control of the project and parted ways with Vision's previous operational team and moved to a position where we have an effective 100% working interest going forward."
"At a corporate level our integration with the team at Great Bear is going very well. We have assembled a first class team both corporately and technically, and we will continue to carefully and strategically manage our assets for the benefit of all shareholders.
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+44 20 7484 5361
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Arden Partners plc (Nominated Adviser and broker)
+44 20 7614 5900
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Notes to Editors
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 assets, in the
For further information on
The information contained within this RNS is considered to be inside information prior to its release. 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 -
Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to 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. The announcement contains management estimates of possible valuations based on certain assumptions based upon information available at the time of writing and relating to a future period and, accordingly, they are not guaranteed and are subject to change. Estimates and assumptions underlying any such valuations are inherently uncertain, are based on events that have not taken place and are subject to economic, competitive and other uncertainties and contingencies beyond the Company's control. It is emphasised that the valuations, which are unaudited projections, do not constitute any form of forecast, whether of cash, profit or otherwise.
BOPD Barrels of Oil per day
NPV Net Present Value
ZOI Zone of interest (primary target)
Gross pay That portion (the overall interval) of a reservoir that contains economically recoverable reservoir.
This information is provided by RNS, the news service of the
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