Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) shares traded higher on Monday after a positive update from Alaska, where drilling was completed for the Dubhe-1 appraisal well.
The Dubhe-1 appraisal well, in Alaska’s North Slope, reached a depth of 15,800 feet, with the well’s lateral section cutting about 5,200 feet in the SMD-B reservoir, exceeding a pre-drill target of 3,000 to 4,000 feet.
In London, the share was up 14% changing hands at 32.85p, valuing the oil and gas junior at around £406 million.
Reacting to the news announcement, stockbroker Zeus Capital highlighted the potential for the share to double in value.
“Going forward, we look for further news from the Dubhe-1 appraisal well, and subsequent progression of development planning and funding going into Ahpun development FID,” Zeus analyst Daniel Slater said.
“We have a positive outlook for the shares, and value them in line with our 77p total risked net asset value (NAV).”
Exceeded expectations
Agreements are in place with key suppliers for the hydraulic stimulation programme of the lateral section, as a precursor to planned flow testing, which will gather detailed key production data.
After the positive measurements in the Dubhe well, management strikes a positive outlook for the upcoming programme.
"We are delighted to announce the Dubhe-1 horizontal lateral as a success, landing the well in the target reservoir and exceeding our expectations for the length," said chief development officer Erich Krumanocker.
"We are looking forward to progressing with the completion and subsequent flow testing of this well."
Pantheon also confirmed updated estimates for the Ahpun area, which now stands at 589 million barrels of marketable liquids, representing a 63% increase from previous assessments.