Pantheon Resources PLC (AIM:PANR, OTC:PTHRF) has received expectation-beating flow test results for the Talitha A vertical test well in Alaska.
The well test was primarily designed to determine whether the oil in Talitha’s Basin Floor Fan (BFF) discovery was ‘moveable’ and oil flowed in separate tests on three separate reservoir intervals.
Rates averaged 73 barrels of oil per day which bodes well for the future of project. Pantheon highlighted that the project would be developed using horizontal wells, stimulated with multiple stage fracs to produce flow rates that the company predicts will be “many times higher”.
"This is a great result and better than we had expected at this location,” said chief executive Jay Cheatham.
“The BFF horizon in this well is in a downdip distal location with suboptimal reservoir qualities, over 10 miles from the ideal location. The objective of this test was not about flow rates; it was about confirmation that we had both movable and high quality light oil.
“We have achieved both of these objectives which is extremely encouraging for the entire BFF system.”
Pantheon’s next well, Theta West 1, is presently being drilled, meanwhile, test operations at Talitha will continue in shallower zones.
The company today added that the drilling of Theta West remains on track and on budget and is expected to reach target depth either today or tomorrow.
"Whilst these flow rates exceeded our expectations, we must caution that, although this is very positive for Theta West, it does not guarantee success,” Cheatham added.
“We must wait to complete the drilling and for flow test results from the Theta West #1 well. However, we remain cautiously optimistic.”
Bob Rosenthal, Pantheon technical director, added: “The Talitha A location sits at the edge of our conceptual development scenario for the targeted potential of 1.2bn barrels of oil recoverable resource in the Lower Basin Floor.
“This is very promising given that we have mapped the BFF extending updip, all the way beyond Theta West. This means that, if drilling and testing is positive at Theta West, the implications for Pantheon are very significant indeed."