Pantheon Resources PLC (AIM:PANR, OTC:PTHRF) told investors that results to date from the Alkaid-2 well in Alaska are exceeding expectations, with the vertical section of the well encountering higher quality reservoirs.
The explorer, in a statement, said the well reached its total vertical depth of 8,950 feet having encountered multiple oil-bearing reservoirs across each of the well’s three target formations – the Shelf Margin Deltaic, the Alkaid and the previously untested Alkaid Deep.
Pantheon said the well has confirmed more than 1,400 feet of "gross continuous oil bearing strata".
All reservoirs were encountered on prognosis at predicted depths with reservoir quality exceeding pre-drill expectations. Specifically, Pantheon said that initial analysis indicates significant improvements in reservoir quality, which could potentially lead to an upgrade to pre-drill resources estimates at each of the targeted horizons.
"I am delighted that the results so far have exceeded our pre-drill expectations,” said Jay Cheatham, Pantheon's chief executive.
“If we achieve a positive flow test on the horizontal section of this well, it will have major positive implications for our company, proving the deliverability and validating our models. I look forward to keeping the market updated with our progress at this exciting time."
Bob Rosenthal, Pantheon technical director, added: "Our analysis to date has been overwhelmingly positive.
“Confirming the presence of the various horizons exactly in the locations we expected gives us great confidence in our subsurface modelling efficacy.”
"The results of logging while drilling demonstrates the clear potential for a material upgrade of both the current Alkaid and SMD resources.
“Though we were unable to assess the maximum depth of Alkaid Deep due to the regulator's requirements, the entire section that we did log was oil saturated giving which is extremely promising.”
Rosenthal meanwhile highlighted that Pantheon now expects to progress its Alaskan discoveries as it looks towards development and in turn production.
"Alkaid #2 marks Pantheon's transitioning process from explorer to producer, where we now begin to focus on optimising the development of these large resources.
“The potential development of two large and separate oil fields sitting on top of each other, the SMD and Alkaid Anomaly respectively, utilising the same production infrastructure on the Dalton Highway with near-term production opportunity, is rare and very exciting.
"We have discovered a huge amount of oil on the ANS across our Theta West, Talitha and Greater Alkaid projects which are estimated by management to contain over 23bn barrels of Oil in Place and over 2.3bn barrels of recoverable resource in those horizons that have flowed oil, and Alkaid #2 could add to these estimates."