Ahead of a webinar later today Pantheon Resources PLC (AIM:PANR, OTC:PTHRF) shared additional information coming from a Wood MacKenzie report which described the company’s Theta West as “the fourth-biggest discovery well globally in 2022".
As the company itself has stated, the expert industry consultancy noted in its report that Theta West still needs additional drilling and testing before potentially being considered commercial.
“Pantheon notes that Theta West is unique in that it is the only onshore discovery in this top four global discovery list. Being onshore and close to existing export infrastructure provides major advantages to any commercial development subject to additional appraisal drilling and production testing,” the company added in a statement.
Separately, Pantheon highlighted that its Alkaid-2 well has now flowed for more than two months and noted its analysis which it said indicates that the stimulation most likely fracked into a small gas cap which, coupled with solution gas, resulted in a gas oil ratio (GOR) many times greater than that observed in the the same reservoir as the Alkaid #1 well.
The company added that it does not intend to seek an extension of the gas flaring permit for Alkaid – because the company does not have the necessary facilities to separate and thus sell natural gas liquids (NGLs) and condensate and given the higher gas volumes. It meanwhile noted that any future development of Alkaid will include the necessary refrigeration equipment to separate and sell the high value NGLs as well as the crude oil.
At Alkaid, future operations will now focus on moving up the well bore and testing the shallower Shelf Margin Deltaic (SMD) zone in the shallower vertical section, following a plugging of the Alkaid zones in this location.
“Analysis of these well results indicate that the SMD has superior reservoir qualities than the Alkaid #2 well,” Pantheon added. “Successful testing of the SMD would add another completely independent oil accumulation to the recently tested Alkaid ZOI which could be jointly developed using the same infrastructure from drill pads positioned adjacent to the highway.
“The size and location of the SMD oil resource would significantly enhance the commerciality of the oil at the Alkaid location.”