REG - Pantheon Resources - Multi-zone flow tests planned for Megrez-1

Pantheon ResourcesAnnouncement

03/03/2025 07:15

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RNS Number : 0561Z  Pantheon Resources PLC  03 March 2025

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
(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 (mailto: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 (about%3Ablank)

 

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 (about%3Ablank) .

 

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