03
March, 2025
Pantheon Resources
plc
Multi-zone flow tests planned
for Megrez-1
Pantheon Resources plc (AIM:PANR,
OTCQX: PTHRF) ("Pantheon" or the "Company"), an oil and gas company
developing the Kodiak and Ahpun oil fields in close proximity to
pipeline and transportation infrastructure on Alaska's North Slope,
today announces further details of its planned flow testing
programme for the Megrez-1 well.
Key
Points
· Data from logs,
cores, cuttings and seismic indicate seven discrete interpreted pay
zones, with flow testing of the shallowest six to commence before
the end of March 2025
· Analyses of
analogous offsets indicate potential flow rates ranging from 200
barrels per day ("bpd") to 2,000 bpd for any specific zone,
depending on the encountered reservoir quality and fluid
properties
· Pantheon expects
flow rates from the deepest horizon to be tested (Topset 1) at the
lower-end of the range and flow rates in the shallower horizons at
the top of the range
· Reliable estimates
of in-place and recoverable contingent resources require successful
flow tests to confirm fluid compositions and reservoir properties,
including API oil gravity, gas-oil ratio and in situ saturations
among others. Previous guidance still stands for the Upper Schrader
Bluff and Prince Creek potential
· Flow data will be
released at the conclusion of testing for each horizon
Planned Flow Test Programme
Integration of all the data gathered
from the drilling of the Megrez-1 well is now sufficiently complete
to return to well operations. This has allowed definition of
completion and flow testing programmes over six horizons beginning
with Topset 1 of the Upper Schrader Bluff and working up the well
to the shallowest interpreted pay zone, the Lower Sagavanirktok
zone 3. The Company has designed its flow
test programme to prioritise data quality rather than seeking to
maximise initial flow rates in order to accentuate the
understanding of the reservoirs to optimise future appraisal and
development. Being a test well drilled from the western side of the
Dalton Highway, the Megrez-1 wellbore was directionally drilled on
an approximately 45 degree angle, designed to pierce multiple
horizons to maximise learnings. Future development of the deepest
horizons, where the reservoir is of lesser quality, will most
likely be through long laterals with multi-stage completions - as
is industry standard and as is planned for Ahpun West and Kodiak.
By contrast, successful flows from the shallower horizons where the
reservoir quality is superior, would most likely lead to a
development plan more akin to Willow or Pikka, but benefitting from
the ability to share infrastructure already constructed for the
planned Ahpun West development.
Detailed core analysis indicates
average reservoir qualities in the deepest horizons more aligned
with the Ahpun West topsets (1 milliDarcy or less) while the
permeabilities improve significantly in the shallower Prince Creek
and Lower Sagavanirktok formations, even exceeding a Darcy in the
shallowest horizons.
Topset 3 is both the deepest horizon
and also the smallest of the horizons volumetrically. Full cores
were taken over this horizon and flow testing from a single
stage treatment in this wellbore would provide little additional
data at this location. A multi-stage completion of a long lateral
well in that horizon during future appraisal or development
drilling represents a more cost-effective means of acquiring useful
data. Thus flow testing operations will occur over the shallower
six horizons, commencing with Topset 1.
The full testing programme will take
up to four months. The tests of the deeper horizons will utilise
hydraulic stimulation and precise timing will depend on scheduling
of pumping equipment among various operators on the North Slope.
Tests in the shallower horizons are not expected to require the
same degree of stimulation and are less susceptible to scheduling
constraints. The benefit of operating from a gravel pad builds
flexibility into the testing programme to avoid overpaying for
services.
Aggregate flow from the testing of
all zones is expected to be comparable to reported rates from other
wells targeting the Brookian formations on the North Slope.
Management has tabulated data on analogous offset wells on the
North Slope of Alaska and posted it to the Pantheon website
https://pantheonresources.com/index.php/investors/q-and-a
David Hobbs, Chairman of Pantheon
Resources, said: "These flow tests could be for transformative
for the Company - both in terms of aggregate resources base and
commercial production potential. Discovering such a large resource
in such an ideal geographic location, adjoining existing certified
resources at Aphun West right alongside the TAPS main oil line, and
alongside the planned route of the proposed Alaska LNG gas pipeline
is a great outcome."
Max
Easley, Chief Executive Officer of Pantheon
Resources, added: "Successful flow tests in the deeper zones
would demonstrate their suitability to incorporate additional
future 10,000ft lateral completions of wells from the Megrez Pad
into the overall Ahpun development plan, utilizing the same
processing infrastructure to deliver higher economic returns.
Anticipated results from the shallower horizons would, if
successful, support a truly conventional development, analogous to
the Pikka and Willow fields (i.e. utilising secondary and tertiary
recovery techniques)."
For
further information, please contact:
UK
Corporate and Investor Relations Contact
Pantheon Resources plc
Justin Hondris
contact@pantheonresources.com
Nominated Adviser and Broker
Canaccord Genuity Limited
Henry Fitzgerald-O'Connor, James Asensio, Charlie Hammond
+44 20 7523 8000
Public Relations Contact
BlytheRay
Tim Blythe, Megan Ray, Matthew Bowld
+44 20 7138 3204
USA
Investor Relations Contact
MZ Group
Lucas Zimmerman, Ian Scargill
+1 949 259 4987
PTHRF@mzgroup.us
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 David Hobbs, a qualified Petroleum Engineer and a
member of the Society of Petroleum Engineers, who has 40 years'
relevant experience within the sector.
The information contained within this
Announcement is deemed by Pantheon Resources PLC to constitute
inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of UK law by virtue of the
European Union (Withdrawal) Act 2018 ("MAR").
About Pantheon
Resources
Pantheon Resources plc is an AIM
listed Oil & Gas company focused on developing its 100% owned
Ahpun and Kodiak fields located on State of Alaska land on the
North Slope, onshore USA. Independently certified best estimate
contingent recoverable resources attributable to these projects
currently total c. 1.6 billion barrels of ANS crude and 6.6 Tcf
(trillion cubic feet) of associated natural gas. The Company owns
100% working interest in c. 259,000 acres.
Pantheon's stated objective is to
demonstrate sustainable market recognition of a value of $5-$10/bbl
of recoverable resources by end 2028. This is based on bringing the
Ahpun field forward to FID and producing into the TAPS main oil
line (ANS crude) by the end of 2028. The Gas Sales Precedent
Agreement signed with AGDC (Alaska Gasline Development Corporation)
provides the potential for Pantheon's natural gas to be produced
into the proposed 807 mile pipeline from the North Slope to
Southcentral Alaska during 2029. Once the Company achieves
financial self-sufficiency, it will apply the resultant cashflows
to support the FID on the Kodiak field planned, subject to
regulatory approvals, targeted by the end of 2028 or early
2029.
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 shorter development timeframes, materially lower
infrastructure costs and the ability to support the development
with a significantly lower pre-cashflow funding requirement than is
typical in Alaska. Furthermore, the low CO2 content of the
associated gas allows export into the planned natural gas pipeline
from the North Slope to Southcentral Alaska without significant
pre-treatment.
The Company's project portfolio has
been endorsed by world renowned experts. Netherland, Sewell &
Associates estimate a 2C contingent recoverable resource in the
Kodiak project that total 1,208 mmbbl (million barrels) of ANS
crude and 5,396 bcf (billion cubic feet) of natural gas. Cawley
Gillespie & Associates estimate 2C contingent recoverable
resources for Ahpun's western topset horizons at 282 mmbbl of ANS
crude and 803 bcf of natural gas. Lee Keeling & Associates
estimated possible reserves and 2C contingent recoverable resources
totalling 79 mmbbl of ANS crude and 424 bcf natural gas.
For more information visit
www.pantheonresources.com.
