Pantheon Resources rockets on latest North Slope testing

The AIM-traded firm said three separate 10 foot intervals were perforated over 370 feet, out of 600 feet of gross section, at 9,405 to 9,415 feet, 9,205 to 9,215 feet, and 9,045 to 9,055 feet.

It said those three intervals were individually stimulated and flow tested, producing high quality 35 to 39 degree API oil and averaging 73 barrels of oil per day over a three day test period.

On the final day of testing, the well was flowing at a sustained rate of around 40 barrels per day.

Pantheon said that encouragingly, the bottom hole pressure was near to the reservoir pressure, thus providing an indication of the production potential of that portion of the oil accumulation, which was at the distal limits of the field.

Future development wells would all be drilled horizontally and stimulated with multiple stage fracs, meaning flow rates were expected to be “many times higher”.

The company said it was “greatly encouraged” by the results, given the optimal location for any development of the BFF was in a structurally higher position, currently being drilled and tested at Theta West, 10.5 miles to the north west, where the BFF is the primary objective.

At Theta West 1, Pantheon said drilling was on track and on budget, and was expected to reach total depth either today or tomorrow.

Future drilling and testing results from there would be announced as received.

“This is a great result and better than we had expected at this location, given that the Talitha #A well was positioned to prioritize the Shelf Margin Deltaic horizon,” said chief executive officer Jay Cheatham.

“The BFF horizon in this well is in a downdip distal location with suboptimal reservoir qualities, over 10 miles from the ideal location.

“The objective of this test was not about flow rates; it was about confirmation that we had both movable and high quality light oil.”

Cheatham said the firm achieved both of those objectives, which he described as “extremely encouraging” for the entire BFF system.

“As is typical in Alaska, the future development of oil in BFF would be via horizontal wells which we anticipate being located in a structurally higher position, where superior reservoir parameters are expected compared to those encountered at this location.

“Whilst these flow rates exceeded our expectations, we must caution that, although this is very positive for Theta West, it does not guarantee success.”

The company needed to wait to complete the drilling and for flow test results from the Theta West 1 well, Jay Cheatham explained.

“However, we remain cautiously optimistic.

“The team is now moving up the hole at Talitha A to continue our testing operation in the shallower zones.”

Technical director Bob Rosenthal added that he was “delighted” with the result.

“As I recently stated in our webinar, the objective had never been about the flow rate in this location - it was about proving the movability of the oil and the quality of the oil - and we've succeeded on both objectives.

“The Talitha A location sits at the edge of our conceptual development scenario for the targeted potential of 1.2 billion barrels of oil recoverable resource in the Lower Basin Floor.”

Rosenthal described that as “very promising”, given that the company had mapped the BFF extending updip beyond Theta West.

“This means that, if drilling and testing is positive at Theta West, the implications for Pantheon are very significant indeed.”

At 0854 GMT, shares in Pantheon Resources were up 19.27% at 97.8p.