Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) has provided an operational update on the Dubhe-1 well on Alaska’s North Slope as clean-up work continues.
Production remains dominated by stimulation fluids, though intermittent oil began flowing on 3 November.
The company said consistent small oil volumes have been recorded since 19 November, and, gas output has increased throughout. About 40% of injected water has been recovered so far.
Max Easley, chief executive officer, said: "I continue to be pleased with the ongoing safe and efficient execution of our operations to date and look forward to sharing more about Dubhe-1 results when we have them."
Pantheon said drilling and completion costs reached about $33 million after it chose to drill a pilot hole, obtain core samples and penetrate multiple reservoir targets. Costs were also influenced by contingency measures and inflation - this compares to an anticipated spend of $10 million for drilling, and $15 million for completion.
The well cost, inclusive of full appraisal scope, contingency measures, and inflationary pressures, do not detract from a solid operating performance, according to Pantheon. It added that the well pad (which cost around $2.5 million) is reusable for the drilling of future wells.
Pantheon noted that further clean-up, flow-back and well testing operational costs will be determined at the end of the programme.