Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) has kicked off drilling operations for the Megrez-1 well, located in the Ahpun field in Alaska’s North Slope.
The Megrez well aims to explore three topset horizons, testing targets estimated to host up to 609 million barrels of ANS crude and 3.30 trillion cubic feet of natural gas.
"A success at Megrez-1 will expand the understanding of Ahpun oil and gas accumulations and dramatically impact the economics of the Ahpun full field development,” chief executive David Hobbs said in a statement.
“There are few, if any, onshore wells targeting what we estimate to be more than 1 billion boe (barrels of oil equivalent) of 2U prospective resource anywhere in the world during this year.”
“We believe the target reservoir sections should exhibit at least an order of magnitude better permeability than Ahpun's western topsets which were logged and cored in the Pipeline State-1 well on Pantheon's acreage.”
The well site is adjacent to existing pipeline and road infrastructure.
It will use the Nabors 105AC drill rig, which was mobilized for this campaign. Initial work saw Pantheon complete a gravel pad in October, to enable year-round drilling and operations.
"While the outcome of the Megrez-1 well will not impact our already certified 1.6 billion barrels of contingent resources, success here would be material to our Ahpun development plans for both ANS crude and gas,” Hobbs said.
He added: “In a success case, the 609 million barrels of ANS crude immediately adjacent to the Trans-Alaska Pipeline would yield a very high NPV per barrel and the 3.3 Tcf would significantly enhance Pantheon's gas resource base into its proposed gas project with Alaska Gasline Development Corporation.”
“I look forward to reporting on progress once drilling is complete."