Pantheon Resources PLC (AIM:PANR, OTC:PTHRF) told investors it has drilled the Theta West well down to total depth and encountered both the Upper Basin Floor Fan (UBFF) and Lower Basin Floor Fan (LBFF) targets, measuring around 1,160 gross feet of hydrocarbon-bearing reservoir across the two.
Operations have been hampered by extreme cold weather in Alaska, with temperatures as low as -55 Celsius, and a typical programme of analysis has not been possible to date. Wireline logging has not yet been possible but the company did conduct logging whilst drilling which the company said has provided excellent quality data.
The data indicates that the reservoir quality is superior to the previously drilled Talitha well, with high-quality light oil encountered across the entire section. Pantheon plans to conduct flow testing in the UBFF and LBFF horizons in the coming weeks.
"This an encouraging result,” said Pantheon technical director Bob Rosenthal. “Our initial assessment of 1,160 feet of light hydrocarbons 1,500 ft structurally updip from Talitha, with better porosities, is in line with our pre-drill geologic model.
“It is very much a case of so far, so good."
Jay Cheatham, Pantheon chief executive, meanwhile, added: "We are cautiously optimistic that testing will prove the commercial viability of the BFF at this location, with all indications so far supporting our pre-drill assumptions.”
Separately, the company noted that testing continues at the Talitha well where the Slope Fan System (SFS) is now being tested – it was deemed a secondary exploration target in the Talitha location and, like the BFF, is deemed to be sub-optimal here. Nonetheless, testing seeks to prove the movability of hydrocarbons, and confirm high-quality light oil.
Last week, Pantheon reported better-than-expected flow testing results at Talitha – confirming moveable hydrocarbons and measuring oil flows from the vertical well that were above internal forecasting.
Rates for the BFF in the vertical well averaged 73 barrels of oil per day which bodes well for the future of project.
The company noted 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”.
Talitha was deemed to be on the edge of the company’s conceptual development scenario for what could be a ‘billion-barrel project’.
Theta West was drilled in an ‘updip’ location from Talitha.