REG - Pantheon Resources - Operational Update, Alkaid #2 Well

Pantheon ResourcesAnnouncement

18/08/2022 07:00

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RNS Number : 3944W  Pantheon Resources PLC  18 August 2022

18 August 2022

Pantheon Resources plc

Operational Update, Alkaid #2 Well

Corporate Update

Pantheon Resources plc ("Pantheon" or the "Company"), the AIM listed oil and
gas company with a 100% working interest in all of its oil projects spanning
c. 153,000 acres adjacent and near to transportation and pipeline
infrastructure on the Alaska North Slope ("ANS"), is pleased to announce the
conclusion of drilling operations, and the commencement of preparations for
stimulation and flow testing at the Alkaid #2 well.

Alkaid #2 Well - Horizontal Lateral Target Depth Reached

Drilling operations at the Alkaid #2 horizontal well bore have now concluded,
reaching a total measured depth of 14,300 feet ('ft') which includes a lateral
length of 5,300 ft. A 5 ½ inch liner has been run, set, cemented at the
bottom and tested for integrity. Pantheon, like all companies in the oil and
gas industry, is experiencing significant inflationary cost and supply chain
pressures at present, and hence is extremely pleased that drilling of the
lateral section was accomplished smoothly and without incident.

As previously announced, future production wells will have a targeted lateral
length of +/- 8,000 ft. However, as this is Pantheon's first horizontal well
on the North Slope, and to minimize operational risk and still deliver the
production data needed to optimize development of the resource, the Company
adopted a conservative approach and utilized a shorter lateral.

Analysis of the logging while drilling (LWD) and gas chromatograph readings
indicate that the improved reservoir parameters encountered in the vertical
pilot hole have continued or improved in the horizontal well bore. This data
further confirms the accuracy of Pantheon's geological models and provides the
Company with greater confidence to predict reservoir tops and bottoms. As
previously announced, initial analysis indicates significant improvements in
reservoir quality which has the potential to lead to upgrades of the current
resource estimates for all targeted horizons.

Analysis of data received to date also highlights the progression in the
Company's ability to accurately predict the presence of light oil bearing
reservoirs using 3D seismic data, geological and geophysical capabilities,
further enhancing confidence in future drilling and development planning. The
quality of data received from the well has been extremely high and the Company
will assess the flow test and other well data before making a final decision
on the winter 2022/23 operations program.

Next Steps - Long Term Production Testing

Future operations at Alkaid #2 involve demobilizing the Nabors Rig 105 and
moving in a smaller completion rig to undertake the extended completion
operations of perforating and stimulating the horizontal section approximately
every 165 ft and will necessitate +/- 30 separate perforation and stimulation
stages.

After the completion, long term production testing will utilize a modular
production kit capable of separating any oil, gas or water from the production
stream before trucking this oil to a nearby production unit for sale. As
mentioned previously, Pantheon will use unconventional production techniques,
applying this technology to the conventional sandstone reservoirs encountered
across the entire project area.

Corporate Update

The Company is also pleased to announce that it is in the process of applying
for the Company's ordinary share capital to trade on the OTC Market's OTCQX
trading platform in the Unites States. The OTCQX is the top tier of the three
marketplaces for the OTC trading of stocks and will allow U.S. investors
greater ability to access the Company's Ordinary Shares in U.S. dollars and
during U.S. market hours. The Company is not seeking a fundraising in
conjunction with this process.

 

Bob Rosenthal, Technical Director, said: "I am incredibly proud of the result
so far and of the superb work of our team. The first development well in any
new area can sometimes yield unexpected surprises as we never really know what
wellbore conditions to expect over such a long distance, and hence I am
delighted we reached 5,300 ft without incident, an important milestone for me
because it exceeded my personal goal of one mile. This latest operation
appears to reinforce the accuracy of our geological modelling, giving me great
confidence in our modelling of the other, even larger, projects in our 100%
owned portfolio."

Jay Cheatham, CEO, commented: "We have achieved another important milestone in
demonstrating our ability to successfully drill a long lateral well. Globally,
conditions for drilling oil and gas wells are challenging at present, with
strong oil prices driving record demand for drilling and support services,
resulting in higher costs and supply chain issues across the industry; so
today's news is extra special for us.

"Each milestone that Pantheon achieves translates into a reduction in risk and
increased confidence in the potential of the large resource discovered to
date. As always, we must remind investors that despite the positive results so
far, a definitive assessment of the commerciality of the well cannot be made
until flow testing has occurred.

"Our successes over the past couple of years continues to attract interest
from U.S. based investors. Upgrading to the OTCQX will be an important step in
allowing greater flexibility in trading, particularly for U.S. investors."

-Ends-

 Further information:

 Pantheon Resources plc
 Jay Cheatham, CEO                                            +44 20 7484 5361
 Justin Hondris, Director, Finance and Corporate Development

 Canaccord Genuity plc (Nominated Adviser and broker)
 Henry Fitzgerald-O'Connor, James Asensio                     +44 20 7523 8000

 BlytheRay
 Tim Blythe, Megan Ray, Madeleine Gordon-Foxwell              +44 20 7138 3204

 

Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas company focused on
several large projects located on the North Slope of Alaska ("ANS"),
onshore USA where it has a 100% working interest in 153,000 highly
prospective acres with potential for multi billion barrels of oil recoverable.
A major differentiator to other ANS projects is its close proximity to
transport and pipeline infrastructure which offers a significant competitive
advantage to Pantheon, allowing for materially lower capital costs and much
quicker development times. The Group's stated objective is to create material
value for its stakeholders through oil exploration, appraisal and development
activities in high impact, highly prospective conventional assets, in
the USA; a highly established region for energy production with
infrastructure, skilled personnel and low sovereign risk. All operations are
onshore USA, with drilling costs materially below that of offshore wells.

 

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 Robert Rosenthal, a qualified Petroleum Geologist, who has
over 40 years' relevant experience within the sector.

 

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