REG - Pantheon Resources - Preliminary Results from Flow Testing at Megrez 1

Pantheon ResourcesAnnouncement

14/04/2025 07:15

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RNS Number : 8638E  Pantheon Resources PLC  14 April 2025

 

14 April 2025

 

Pantheon Resources plc

Preliminary Results from the Flow Testing of the First of Six Intervals at
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 preliminary results from the flow testing of the first
of six intervals in the planned Megrez-1 well testing programme.

Key Highlights

·    The well was fracture stimulated in the Topset 1 ("TS1") reservoir
interval over some 290 feet ("ft") from 7165 ft to 7453 ft MD.

·    The well was produced for 12 days delivering sustained strong liquid
rates, exceeding 1,000 barrels per day at the end of the flow back period, no
appreciable hydrocarbons were produced from the well.

·    Preliminary analysis indicates that although the reservoir is oil
bearing, it appears to be in a transition zone with limited to no mobile oil
and gas.

·    The technical data gathered increases confidence in the productivity
and hydrocarbon potential of the intervals higher in the wellbore and
indicates mobile oil will be found in the shallower stratigraphic sequences.

·    TS1 will be abandoned and well operations to test the next interval
(Lower Prince Creek) will commence as soon as high-pressure pumping equipment
is mobilised to the Megrez pad.

 

Results of Flow Test Programme

The TS1 interval was fracture stimulated in two stages to maximise the
productivity potential of the well. These stimulations were successfully
executed, and the well was brought on production on 3 April 2025. The well
initially produced strongly against a 30/64 inch choke and the well was
gradually increased to a final rate of over 1,000 barrels per day.  During
the 12 day testing programme, the well sustained high fluid rates with no
indications of decline. However, no appreciable oil or gas was recorded at
surface. Preliminary analysis, incorporating the salinity of the produced
water, indicates that the logged and cored hydrocarbon saturations in this
interval are consistent with a transition zone where residual oil saturations
were insufficient to sustain flow to surface. However, the data gathered
increases the robustness of the log analyses that indicate higher saturations
and mobile oil will be found in the shallower stratigraphic sequences.

The plan remains to progress systematically up the well to the shallowest
interpreted pay zone, the Lower Sagavanirktok zone 3. The objective remains to
prioritise data quality rather than seeking to maximise initial flow rates to
increase the understanding of the reservoirs and thus optimise future
appraisal and development. Operations on the next interval, the Lower Prince
Creek formation, will commence shortly with results reported once flow testing
is complete.

 

Max Easley, Chief Executive Officer of Pantheon Resources, added: "Whilst at
face value it appears disappointing that the first and deepest interval did
not produce material hydrocarbons, when you take a closer look, the data we
gathered leaves us with increased confidence in the five shallower and more
productive horizons that remain to be tested. We are confident that these
further five zones will, in aggregate, add high quality inventory to our
already significant 1.6 billion barrels of certified resources in Ahpun and
Kodiak.  We look forward to sharing the next set of results as they become
available."

 

Further information:

 

UK Corporate and Investor Relations Contact
Pantheon Resources plc

Justin Hondris
contact@pantheonresources.com (about:blank)

 

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:blank)

 

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 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 provides the potential for Pantheon's natural gas to be
produced into the proposed 807mile 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 of ANS crude and 5,396
bcf 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
(http://www.pantheonresources.com) .

 

 

 

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