Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) has started drilling a new well, Dubhe-1, near the Ahpun oil field on Alaska’s North Slope.
The company, known for developing nearby Kodiak and Ahpun fields, aims to better understand the size and quality of oil and gas reserves close to existing pipelines and roads.
Dubhe-1 is targeting a specific rock layer called the “topset horizon” where previous work has already identified significant oil and gas.
In simple terms, this well is about confirming how much oil and gas can realistically be recovered. It will also test three other underground layers that could add more resources if they prove promising.
According to a recent independent report by Cawley Gillespie & Associates, this main target layer is estimated to hold about 282 million barrels of oil and related liquids, plus 804 billion cubic feet of natural gas.
Using oil prices around $80 a barrel, this resource is valued at roughly $1.7 billion today after adjusting for time and costs.
The drilling is being carried out using a rig the company has used before, positioned on a specially built gravel pad next to the Dalton Highway. This pad allows work all year round, which is important given Alaska’s harsh winters.
Max Easley, Pantheon’s CEO, said the new well is a key step toward understanding the field’s potential.
He also highlighted the importance of the natural gas volumes from this well in supporting a proposed gas pipeline project, known as Alaska LNG.
Unlike previous exploration wells, which are more about discovering new oil, this well focuses on appraisal: confirming what’s already known but not fully understood. Easley described this as a lower-risk step and promised updates once drilling is finished.