TIDMPANR
Pantheon Resources PLC
27 September 2023
27 September 2023
Pantheon Resources plc
Commencement of Operations - Re-entry of Alkaid-2
Pantheon Resources plc (AIM: PANR) ("Pantheon" or the "Company"
or the "Group"), the oil and gas company with a 100% working
interest in the Kodiak and Ahpun projects, collectively spanning
193,000 contiguous acres in close proximity to pipeline and
transportation infrastructure on Alaska's North Slope, is pleased
to advise that operations for the re-entry at Alkaid-2 have now
commenced.
Objectives
The Alkaid-2 re-entry has three primary objectives:
(i) to gather the best possible reservoir fluid samples for
pressure-volume temperature ("PVT") analysis;
(ii) to determine initial reservoir pressure; and
(iii) test the improvements in the frac design discussed in
recent Company webinars
The objective of the operations at Alkaid-2 is not to target
maximum flow rates. Pantheon will deliberately restrict the flow
rates to minimise gas production into the well bore and allow
optimum data collection.
Re-entry to assess SMD
The Alkaid-2 well was positioned to target the Zone of Interest
("ZOI") in the optimum location and is on the edge of the mapped
SMD reservoir. Notwithstanding the thinner SMD interval at this
location when compared to the core of the Ahpun Field, the well
encountered encouraging hydrocarbon indications en route to the
deeper ZOI.
The programme of operations to achieve the three primary
objectives includes:
1. Make well safe in preparation for operations
2. Run a plug to isolate the Alkaid ZOI below the SMD horizon
3. Perforate a limited section to ensure injection pressures are
high enough to propagate the frac lobes horizontally as desired
4. Pump 11,000 bbls of water and 400,000 lbs of 100 mesh sand
5. Flow back slowly to prevent or limit gas flashing in the
reservoir (i.e. exsolving from solution in an uncontrolled manner)
in order to gather the most representative fluid samples
possible
6. Monitor pressures throughout to assess frac efficiency and original reservoir pressure.
Jay Cheatham, CEO, said: "We are pleased that operations for the
re-entry at Alkaid-2 have now begun. As stated, we are not
targeting maximum flow rates, instead, this programme is designed
to allow for as much data gathering as possible. Whilst the
location of the Alkaid-2 well is not ideal for the shallower SMD
horizon, the Company was pleasantly surprised to have logged oil
pay when drilling through the SMD en route to the primary target,
the ZOI. This has provided a low cost option to assess both the
productivity of the shallower horizon and test our improved frac
design."
Background
The Alkaid-2 well was drilled in 2022 and was positioned to
prioritise testing of the primary target (or 'zone of interest',
"ZOI"), being the oil zone successfully flow tested in the Alkaid-1
well in 2019. Testing of the ZOI was compromised in Alkaid-2 as a
result of wellbore blockages, necessitating a number of cleanout
and other remedial operations. Ultimately, the ZOI produced an IP30
production rate of c.505 barrels per day ("BPD") of marketable
liquid hydrocarbons consisting of oil, condensate and NGLs, as well
as natural gas.
As previously announced, extensive analysis has been undertaken
on the Alkaid-2 ZOI results with the data supporting a commercial
development based upon 10,000ft lateral development wells, a
doubling of the frac efficiency to 40% and assuming no improvement
in reservoir quality. The data indicates that well productivity has
the potential to improve materially based upon better frac design.
Tony Beilman, Pantheon's recently appointed Senior VP of
Engineering, and an expert in fracking in North America, believes
that with iterative optimisation, Pantheon has the potential to
meet typical performance benchmarks, a 4x improvement upon that
achieved in the ZOI. One of the primary objectives of the upcoming
Shelf Margain Deltaic test is to assess the efficacy of an updated
frac design.
-ENDS-
Further information, please contact:
+44 20 7484
Pantheon Resources plc 5361
David Hobbs, Executive Chairman
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate
Development
Canaccord Genuity plc (Nominated Adviser and
broker)
+44 20 7523
Henry Fitzgerald-O'Connor, Gordon Hamilton 8000
BlytheRay
+44 20 7138
Tim Blythe, Megan Ray, Matthew Bowld 3204
Notes to Editors
Pantheon Resources plc is an AIM listed Oil & Gas company
focused on developing the Ahpun and Kodiak fields located on state
land on the Alaska North Slope ("ANS"), onshore USA where it has a
100% working interest in 193,000 acres. Management estimates these
fields to produce Expected Ultimate Recovery of contingent
resources amounting to some 2 billion barrels of marketable liquids
to be delivered through the Trans Alaska Pipeline System
("TAPS").
Pantheon's stated objective is to demonstrate sustainable market
recognition of a value of $5-$10/bbl of recoverable resources by
end 2028. This will require targeting Final Investment Decision
("FID") on the Ahpun field by the end of 2025, building production
to 20,000 barrels per day of marketable liquids into the TAPS main
oil line, and applying the resultant cashflows to support the FID
on the Kodiak field by the end of 2028.
A major differentiator to other ANS projects is the close
proximity to existing roads and pipelines which offers a
significant competitive advantage to Pantheon, allowing for
materially lower infrastructure costs and the ability to support
the development with a significantly lower pre-cashflow funding
requirement than is typical in Alaska.
The Company's project portfolio has been endorsed by world
renowned experts. Netherland, Sewell & Associates ("NSAI")
estimate a 2C contingent recoverable resource in the Kodiak project
that total 962.5 million barrels of marketable liquids and 4,465
billion cubic feet of natural gas. NSAI is currently working on
estimates for the Ahpun Field.
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END
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