TIDMPANR
RNS Number : 8505T
Pantheon Resources PLC
25 March 2019
25 March, 2019
Pantheon Resources plc
Alkaid Well - successful flow test
Pantheon Resources plc ("Pantheon" or "the Company"), the
AIM-quoted oil and gas exploration company with working interests
in several conventional project areas in Tyler and Polk Counties,
onshore East Texas, as well as onshore North Slope of Alaska
following its January 2019 acquisition of the assets of Great Bear
Petroleum, is pleased to advise the following update in relation to
the testing of the Alkaid well located on the Alaska North
Slope:
Highlights: Alkaid Well, Alaska North Slope, Pantheon 100%
working interest
-- The first of the 3 targeted horizons, the Brookian ZOI,
confirmed as an oil discovery, following a successful flow test
where results exceeded expectations.
-- A 6 foot interval (from a c.240 foot interval of net pay) was
perforated and flow tested at 80-100 BOPD light oil (40 degree
API).
-- Such flow rates are considered to be an excellent result and
indicate the potential for materially higher flow rates when wells
are drilled in the typical manner for Brookian wells in Alaska -
horizontally, stimulated, and with larger intervals perforated.
-- The Alkaid well was drilled as a vertical test well with the
primary objective to obtain sufficient data to make an assessment
as to the potential commerciality of the targeted horizons.
-- The plan is to now isolate the Brookian ZOI zone, and to flow
test the shallower West Sak and Ugnu horizons prior to shutting
down operations later in April.
As previously reported, Pantheon is currently undertaking a
production testing operation of its Alkaid well which was drilled
in 2015 but immediately suspended as a result of regional flooding.
Electric logging and other analysis identified three potentially
productive zones for flow testing, commencing with the deepest
zone, the Brookian ZOI. This will be followed by the two shallower
zones, the West Sak and Ugnu, both of which are substantial
producers on the North Slope. Pantheon has a 100% working interest
in this testing operation.
The Brookian ZOI has an estimated gross 400 feet and net 240
feet of pay. A six foot interval was perforated and stimulated and
the well flowed naturally until 30% of the frac fluid was
recovered, when a nitrogen gas lift system was initiated. Light oil
(40 degree API) was recovered and c.40% of the frac fluid was
returned within the first 14 hours. The well was shut in for 72
hours due to equipment problems and severe weather conditions
(stage 3 Blizzard). The well was then turned back on and the oil
cut increased steadily to +40%, producing about 80-100BOPD with
occasional slugs of oil producing at much higher rate.
The production and pressure data collected through testing,
along with pressures and log data acquired when the well was
drilled in 2015 gives us increased confidence in the 240 feet of
net oil pay in the Brookian ZOI. The acquired data will now be used
to determine reservoir parameters and improve development plans.
Like the rest of the regional discoveries in the Brookian, the
forward development plan envisages horizontal wells with
multi-stage fracs.
Jay Cheatham, CEO, said:
"This is an excellent result which exceeded our expectations.
This result is significant not only for its potential economic
impact, but also because it validates the outstanding quality of
the geological and high-tech geophysical work undertaken by the
Great Bear team. I am very optimistic that this quality of work
will benefit our entire prospect inventory in both Alaska and in
East Texas."
"There are always risks associated with re-entering and testing
wells suspended from previous operations and I am very pleased that
our operations and results to date have been very good. We only
tested a 6 foot section of the oil reservoir after a small
stimulation, which was sufficient to generate rapid flow back with
increasing oil cut. We now have high quality 40 deg API oil
confirmed as productive at the Alkaid location. The forward plan is
to collect some more pressure data and move up hole to test the the
West Sak and Ugnu horizons."
"Given the remoteness of Alaska, per barrel NPV's are greatly
influenced by proximity to infrastructure and we are very fortunate
that the Alkaid reservoir is directly adjacent to both the Trans
Alaskan Pipeline and to the Dalton Highway. It is on track to
become our first oil development in Alaska. The exploratory
significance of this result is also important as it upgrades
adjoining structures."
"We will continue to update the market as more information is
acquired over the coming weeks"
-ENDS-
Further information:
Pantheon Resources plc +44 20 7484 5361
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate
Development
Arden Partners plc (Nominated Adviser and broker) +44 20 7614 5900
Paul Shackleton
Daniel Gee-Summons
Notes to Editors
Pantheon Resources plc is an AIM listed Oil & Gas
exploration and production company with assets in East Texas and on
the North Slope of Alaska, onshore USA.
The Group's stated objective is to create material value for its
stakeholders through oil exploration, appraisal and development
activities in high impact, highly prospective assets, in the USA; a
highly established region for energy production with
infrastructure, skilled personnel and low sovereign risk. All
operations are onshore USA, with drilling costs an order of
magnitude below that of offshore wells.
In East Texas, Pantheon holds a 50% to 75% working interest (and
in present discussions to increase this to 100% working interest
for non-cash consideration) in several conventional prospects in
Tyler & Polk Counties, in an area of abundant regional
infrastructure, and in proximity to the prized Double A Wells
Field. P50 Technically Recoverable Resources are estimated at 157
million barrels of oil equivalent.
In Alaska, following its acquisition of the assets of Great Bear
Petroleum in January 2019, Pantheon holds working interests ranging
between 10% and 90% of prospects covered by over 1,000 square miles
of 3D seismic with P50 Technically Recoverable Resources estimated
at 1.7 billion barrels of oil. An additional 0.4 billion barrels of
P50 Technically Recoverable Resources was estimated to apply the
Winx-1 Western Acreage acreage blocks, however this number is
subject to downward revision following the disappointing Winx
result in March 2019.
For further information on Pantheon Resources plc, see the
website at: www.pantheonresources.com
The information contained within this RNS is considered to be
inside information prior to its release. Neither the contents of
the Company's website nor the contents of any website accessible
from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
In accordance with the AIM Rules - Note for Mining and Oil &
Gas Companies - June 2009, the information contained in this
announcement has been reviewed and signed off by Jay Cheatham, a
qualified Chemical & Petroleum Engineer, who has over 40 years'
relevant experience within the sector.
Cautionary Statement: The estimated quantities of petroleum that
may be potentially recovered by the application of a future
development project relate to undiscovered accumulations. These
estimates have both an associated risk of discovery and a risk of
development. Further exploration, appraisal and evaluation are
required to determine the existence of a significant quantity of
potentially movable hydrocarbons.
GLOSSARY
BOPD Barrels of Oil per day
API The American Petroleum Institute gravity, or API gravity, is
a measure of how heavy or light a petroleum liquid is compared to
water: if its API gravity is greater than 10, it is lighter and
floats on water; if less than 10, it is heavier and sinks.
NPV Net Present Value
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END
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