Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) CEO Jay Cheatham talked with Proactive about the company’s latest announcement regarding the Megrez-1 well.
Located in the eastern tops, this well has shown significant potential, with a 15-50% increase in resource estimates over the pre-drill figure of 609 million barrels.
Here, we revisit what was said.
Proactive: Jay, welcome back. Good to see you again.
Jay Cheatham: Steve, it’s always great. It’s a pleasure to be with you again. Thank you.
Proactive: And also joining us is your Technical Director, Bob Rosenthal. Bob, great to see you as well.
Bob Rosenthal: Good to see you too.
Proactive: Jay, let’s start with you. You had a big announcement from the company today about the Megrez-1 well. Exciting news. Can you remind everyone about this well and the details of the announcement?
Cheatham: Yes. The Megrez-1 well is drilling into our eastern tops, which is east of the Dalton Highway and the Trans-Alaska Pipeline.
The headline here is that we see an increase in the resource estimate, from the pre-drill figure of 609 million barrels, by 15 to 50%.
This increase applies to the upper Schrader Bluff and Prince Creek zones.
Proactive: That’s a significant update. Bob, can you provide the technical perspective on the findings?
Rosenthal: Sure. If you could flash back to Jay for one second – I love Jay’s background picture.
Cheatham: I’ll move out of the way so you can see it better.
Rosenthal: In that picture, there’s a feature called the Franklin Bluffs. If it had been named the Franklin Fold, I think it would have caught more attention in the geologic community.
This is a large structural feature sitting in the foreland basin. That was the first thing that attracted us years ago.
What we’ve confirmed is that this fold sits atop the HRZ source rock, which is in peak oil generation. That’s crucial for exploration. The isotope data and analysis of cuttings confirm hydrocarbon presence.
Moreover, some of the zones above our original targets, which weren’t included in the initial resource estimate, appear to be hydrocarbon-bearing as well.
Proactive: That’s fascinating. Jay, what are the next steps for these zones?
Cheatham: The next step is testing.
We’ll do four tests initially – two in the upper Schrader Bluff and two in the lower and upper Prince Creek.
These zones have better permeability and porosity, so the testing protocols will differ from previous wells.
Additionally, as Bob mentioned, there are potentially three more zones above the upper Prince Creek that we’ll consider testing after further diagnostics.
Proactive: Lastly, this must feel like a strong day for Pantheon Resources.
Cheatham: Absolutely. The market has recognized the significance of these results, and there’s potentially much more to come.
Proactive: Great. Thank you, Bob and Jay, for your time.
Rosenthal: Thank you.
Cheatham: Thank you, Steve.