Pantheon Resources PLC (AIM:PANR, OTC:PTHRF) said it completed stimulation of the Alkaid #2 horizontal well in Alaska with a workover rig now en route ahead of flow testing.
The rig will install production tubing prior to commencing flow testing operations.
Initially, drill fluid will be cleaned out with oil production likely to start later in October, Pantheon said in a statement.
After drilling the well in August, Pantheon said it was moving in a smaller completion rig to undertake the extended operations of perforating and stimulating the horizontal section approximately every 16 feet.
Jay Cheatham, Pantheon’s CEO, said: "This is the second of two very important milestones for Pantheon this year and a significant step toward potential commercialization of our discoveries on the North Slope.
“Pantheon has now drilled a horizontal well exceeding 5,000 feet through our target formation from a gravel pad along the Dalton Highway and successfully executed 30 stimulation treatments over that horizontal length."
The explorer added it has also applied to the Alaska Oil and Gas Conservation Commission (AOGCC) to carry out a long-term pilot production test. This will allow gas flaring at the Alkaid #2 well beyond the initial flow testing and for the period of the pilot.
A hearing date with the AOGCC has been set for 27 October, though Pantheon does not expect this to delay or curtail testing.
A long-term pilot would better allow it to model the scale of the North Slope project for regular production, it said.
Consultant Schlumberger is already working on a detailed dynamic 3D subsurface visualisation of the various Alaska North Slope targets, a project that Pantheon said was advancing well.
"Our intention with the long-term pilot production test is to maximize our data collection which, coupled with the upcoming Schlumberger report, will be invaluable to our understanding of the Alkaid interval as well as our wider portfolio of projects," said Cheatham.
Bob Rosenthal, technical director, added: “Drilling the horizontal and performing the multistage stimulations were the biggest operational risks we faced and we are delighted to have these successfully completed and behind us.
He added several techniques new to Alaska had been employed at the well including a 'monobore' casing design and horizontal, multi-stage completion (30 stage stimulation).