Pantheon Resources PLC (AIM:PANR, OTC:PTHRF) shares rallied as investors returned to their desks for the new year and as the explorer provided additional commentary around its Alkaid-2 well results, that had spooked the market when released on 30 December.
The explorer told investors then that the Alkaid-2 well appears to be performing well whilst still undergoing constraints of its ‘clean up’ phase, which encountered a blockage in one section of the well.
It said, in the 30 December statement, that the lateral section of the Alkaid well remained partially blocked with around 1,000 feet of frac sand still in the well which has restricted test rates from that section and has demanded a more conservative testing protocol.
Alkaid-2 was flowing naturally into the recently commissioned production facilities and it is estimated that the well is only 40% through its ongoing ‘clean up’, so the company sees potential for production rates to improve further.
Pantheon highlighted, meanwhile, that hydrocarbon liquids production rates of around 500 barrels per day are “near expectations” - based on a 4,000 feet of unblocked lateral well section - and the gas rates are “well above” expectations.
“The total hydrocarbon production rates confirm we have tapped into a significant hydrocarbon system. To have this level of production at this stage in the 'clean up' phase of production testing remains positive,” Pantheon chief executive Jay Cheatham said in the December statement.
Spooked, investors saw Pantheon shares drop to a low of 41.5p amid 30 December’s thin seasonal trading.
Pantheon today, however, released an investor Q&A which helped put the shares into recovery mode, rising by some 20% to reach 53.75p in early deals, before settling to around 47.83p approaching midday.