Pantheon Resources said it was delighted with the progress of its Alkaid-2 well in Alaska with target depth now reached including 5,300ft of horizontal drilling.
Alkaid-2 is Pantheon’s first horizontal well on the Alaska North Slope and one of the most keenly anticipated development holes in the region for years.
Pantheon said it was ‘extremely pleased’ that drilling of the lateral section was accomplished smoothly and without incident with preparations now underway for stimulation and flow testing.
Future production wells will have a targeted lateral length of around 8,000 ft but as this is the first, Pantheon said it had adopted a conservative approach and utilized a shorter lateral.
Analysis of the logging while drilling (LWD) and gas chromatograph readings indicated that the improved reservoir parameters encountered in the vertical pilot hole have continued or improved in the horizontal wellbore, Pantheon added.
“This data further confirms the accuracy of Pantheon's geological models and provides the company with greater confidence to predict reservoir tops and bottoms,” while also pointing to significant improvements in reservoir quality and possible resource estimates for all targeted horizons.
The quality of data received from the well has been extremely high, Pantheon said.
It added that the next steps involve demobilising the Nabors Rig 105 and moving in a smaller completion rig to undertake the extended operations of perforating and stimulating the horizontal section approximately every 16 ft.
Pantheon reiterated it will use unconventional production techniques, applying this technology to the conventional sandstone reservoirs encountered across the entire project area.
Bob Rosenthal, Pantheon’s technical director, said: "I am incredibly proud of the result so far and of the superb work of our team.
“The first development well in any new area can sometimes yield unexpected surprises as we never really know what wellbore conditions to expect over such a long distance, and hence I am delighted we reached 5,300 ft without incident.
“This latest operation appears to reinforce the accuracy of our geological modelling, giving me great confidence in our modelling of the other, even larger, projects in our 100% owned portfolio."
Jay Cheatham, CEO, added: "We have achieved another important milestone in demonstrating our ability to successfully drill a long lateral well.
"Globally, conditions for drilling oil and gas wells are challenging at present, with strong oil prices driving record demand for drilling and support services, resulting in higher costs and supply chain issues across the industry; so today's news is extra special for us.
"Each milestone that Pantheon achieves translates into a reduction in risk and increased confidence in the potential of the large resource discovered to date.
Cheatham added Pantheon is applying for its shares to be traded on the OTC Market's OTCQX trading platform in the US.
Pantheon’s Alaskan projects - Theta West, Talitha and Greater Alkaid- are estimated by management to contain over 23bn barrels of Oil in Place and over 2.3bn barrels of recoverable resource.