Pantheon Resources PLC (AIM:PANR, OTC:PTHRF) has told investors that testing of the Theta West well, in Alaska, likely exceeds its pre-drill estimates for the project.
The company, in a statement, said that testing of the Lower Basin Floor Fan (LBFF) target resulted in oil flowing to surface and that initial results satisfy the primary goals of the programme – namely to a) confirm oil quality b) confirm oil movability and c) confirm reservoir deliverability.
Testing initially delivered encouraging oil flow rates before operations were shut-in due to a storm. The test saw peak rates of around 100 barrels per day from the vertical well, with the rate noted at 59 bopd prior to the storm. As with prior vertical test wells drilled by Pantheon, the company anticipates that flow rates from horizontal production wells would be materially higher.
Bob Rosenthal, Pantheon's technical director, said the company is now “on the path to unlocking an enormous basin play”, whilst noting that Theta West was already estimated to in excess of a billon barrel resource.
"All these flow tests were designed to prove oil quality and deliverability in a vertical well,” Rosenthal said.
“Our reservoir engineers will be able to model the potential flow rates from specifically designed horizontal production wells, which is now industry standard practice on the North Slope.”
The technical director added: “Pantheon has an opportunity to develop a number of large, discreet oil accumulations in an established oil province adjoining export infrastructure, which we believe is unique.”
Pantheon said the test is presently suspended due to extreme weather but may resume if conditions improve before the end of the Arctic operating season.
"As was the case with our testing operation on the Shelf Margin Deltaic at Talitha, extreme weather conditions have interrupted testing Theta West. Crucially however, we have collected enough data to confirm our expectations that we have discovered, and now appraised, an extensive resource which we believe meets or exceeds our pre-drill estimates," said chief executive Jay Cheatham.
"We are very excited by this result at Theta West.”
Cheatham noted that Theta West is a successful 10.5 mile ‘step-out’ from Pantheon’s other successful wells, confirming a “vast resource” and confirming the company’s geological model.
"After confirming the oil resource over this large area, our focus will now shift to proving the deliverability of production wells which will commence with the spudding of Alkaid 2 horizontal well, estimated for July 2022,” he added.
“By utilizing a gravel pad immediately adjacent to the Dalton Highway, Pantheon will operate without being limited to winter operations.
“This allows for a horizontal well with appropriate stimulation, long-term flow testing and, if successful, oil sales. We are confident of deliverability and excited for the next step in our drilling programme."