Pantheon Resources reports progress on Alaska's North Slope

The AIM-traded company said it successfully executed a contract to use the Nabors 105AC drill rig for the Megrez-1 exploration well, scheduled to start drilling in the fourth quarter.

It said Megrez-1 would target the Ahpun East topset play, an area estimated by the company to contain 609 million barrels of marketable liquids and 3.3 trillion cubic feet of natural gas.

With an estimated 69% geological chance of success, the well was positioned in shallower topset sands compared to previous drilling in the Ahpun western topsets.

Preparatory siteworks for the gravel pad construction along the Dalton Highway were expected to begin in September, with rig mobilisation to follow on completion.

In addition to the drilling preparations, Pantheon said it had finalised the acquisition of 46 new oil and gas leases secured during the State of Alaska's 2023W Areawide oil and gas lease sale last December.

The leases, covering a total of 65,691.5 acres, include 30 leases on the western boundary of the Kodiak Field and 16 covering the Ahpun East topset play.

Pantheon said the official issue of the leases by the State of Alaska was anticipated in the coming weeks.

“With a management best estimate for the eastern topsets in Ahpun at over one billion barrels of oil equivalent 2U prospective resource to be tested by the Megrez-1 well, located immediately adjacent to pipeline and road infrastructure and in reservoirs expected to be orders of magnitudes better than western topsets, we believe this to be one of the most impactful onshore exploration well being drilled anywhere in the world during 2024,” said chief executive officer Jay Cheatham.

“Success here would further advance our Ahpun development models and plans.”

At 1337 BST, shares in Pantheon Resources were up 0.66% at 18.26p.

Reporting by Josh White for Sharecast.com.