Pantheon Resources PLC (AIM:PANR, OTC:PTHRF) told investors it has formally executed contracts for the Nabors 105AC drill rig which will drill the Alkaid-2 well on Alaska's North Slope later this year.
Alkaid-2 is currently slated for spudding in July and is planned to be a horizontal well that will undergo long-term production testing.
If all goes to plan it will be an important catalyst for Pantheon’s discoveries in Alaska as it will provide key commercial insights for future field development planning. Results from vertical wells have so far exceeded original expectations.
"Following the reported flow rates in certain horizons tested in the vertical Theta West and Talitha test wells, we are pleased to share with investors our approach to modelling possible horizontal outcomes,” said Bob Rosenthal, Pantheon technical director.
“This analysis is extremely important given our 100% working interest Theta West, Talitha and Greater Alkaid projects are estimated by management to contain over 23 billion barrels of Oil in Place and over 2.3 billion barrels of recoverable resource in those horizons that flowed oil."
Chief executive Jay Cheatham, meanwhile, added: “We are on track to spud in July, allowing Pantheon to commence a long-term production test and, importantly, begin generating revenue for the company, as well as conducting potentially impactful appraisals of the Shelf Margin Deltaic and the deeper portion of the Alkaid horizon.”
The new well will be drilled in a ‘step-out’ location which will further test the company’s current models of the project and its estimated resources.