Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) told investors it is advancing preparations for the Megrez-1 exploration well, expected to spud next quarter.
The well will be drilled from a gravel pad adjacent to the Dalton Highway on Alaska's North Slope, offering year-round operational capabilities, unlike traditional ice pads, which are constrained by the winter season.
The company’s management has estimated a 69% geological chance of success for Megrez-1, targeting 609 million barrels of recoverable liquids and 3.3 trillion cubic feet (Tcf) of natural gas.
The Megrez-1 prospect, according to Pantheon, aligns with the company's broader development strategy and could provide valuable data that could accelerate development approvals for its Ahpun field.
"A successful Megrez-1 well could be massive news for our company,” chief executive Jay Cheatham said in a statement.
“With a management best estimate of prospective recoverable resources of over 600 million barrels of marketable liquids, set in a conventional reservoir, analogous to the recent discoveries on the north slope. the implications for Pantheon are positive on many levels.”
"Clearly a successful result in Megrez-1 will enhance the economics of initial production build-up following the expected FID planned for the end of 2027.
He noted that in parallel, the company is progressing the engineering and environmental planning required to achieve the earliest possible approval of the environmental impact statement (EIS) for the separate Ahpun field development – albeit, the Megrez well could also be used to test Ahpun, for additional data.
Pantheon has already received approvals for the construction of the gravel pad and expects the remaining permits to be granted soon, paving the way for drilling operations to begin on schedule.
The move to a gravel pad allows Pantheon to fast-track its testing program, potentially spudding the well up to three months earlier than would have been possible from an ice pad.