Pantheon Resources PLC (AIM:PANR, OTC:PTHRF) shares soared some 35% in Monday’s deal boosted by better than expected well testing at the Talitha vertical well, in Alaska.
The test was designed to determine whether the oil in Talitha’s Basin Floor Fan (BFF) discovery was ‘moveable’, assessing potential production volumes in this particular well and location was less important – nevertheless, the results impressed.
"This is a great result and better than we had expected at this location,” said chief executive Jay Cheatham.
Investor interest is further boosted as the company’s next well result, for Theta West 1, is expected imminently (due either today or tomorrow).
Theta West predicted to be a more optimal location for the BFF.
The Talitha results are seen as positive, potentially, for follow up and future wells in the project,
Talitha was not optimally located and it is a vertical well, whereas future wells will be horizontal and therefore likely to be more productive.
Bob Rosenthal, Pantheon’s technical director, this morning highlighted that the Talitha well location is at the edge of our conceptual development scenario, for what could be a 1.2bn barrel recoverable resource, and that alongside the upcoming Theta West well could bode well for the project’s future.
“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."
It’s perhaps no wonder that Pantheon shares had such a strong showing as speculators strengthen positions ahead of the next result.
Comments from chief executive Jay Cheatham, meanwhile, made some attempt to keep investors grounded.
"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.”