REG - Pantheon Resources - Theta West #1 Testing Update

Pantheon ResourcesAnnouncement

24/03/2022 07:00

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RNS Number : 8387F  Pantheon Resources PLC  24 March 2022

24(th) March 2022

 

Pantheon Resources plc

Theta West #1 Testing Update

 

Pantheon Resources plc ("Pantheon" or "the Company"), the AIM-quoted 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, is pleased to provide the following
update:

Theta West - Testing Update

Testing of the Lower Basin Floor Fan ("LBFF") at the Theta West #1 location
has commenced with the well flowing high quality oil to surface which the
Company believes supports, and likely exceeds, its pre-drill resource
estimates of 1.2 billion barrels of oil (recoverable). As with previous
testing operations on the North Slope, the primary objectives of the LBFF test
was (a) to confirm oil quality, (b) to confirm oil movability, and (c) to
confirm reservoir deliverability. All of these objectives were successfully
achieved in this initial testing operation. The Company has now suspended
testing of the LBFF formation due to the onset of a severe storm in the area.

After the initial encouraging oil flow rates, the Theta West #1 well was shut
in due to the arrival of the storm. The well flowed high quality, light
35.5-38.5 degree API gravity oil at rates that averaged over 57 barrels of oil
per day ("BOPD") with peak rates exceeding 100 BOPD over 2.5 days. Over the
final day prior to shut-in the well was averaging approximately 59 BOPD.
 Significantly, this rate meets the Company's pre-drill expectations,
confirms the presence, quality, and mobility of light sweet crude oil. Testing
operations are now suspended due to the extreme weather, with a possibility
that testing may resume if the conditions improve before the conclusion of the
Arctic operating season.

Theta West #1 encountered 950 feet ("ft") of oil in the LBFF of which only
three small sections of this large zone were tested. The three, 10 ft
perforations were conducted at the following depths: 8,065 - 8,075ft, 7,745 -
7,755 ft and 7,595 -7,605 ft, which were all successfully stimulated and
comingled into one test across these zones. Approximately 40% of the testing
fluid was recovered before testing was suspended. The ultimate flow potential
is better assessed after recovery of a greater portion of the testing fluid,
which was not possible in this case due to bad weather halting operations in
the area. Importantly, the results confirm the extension of the oil
accumulation over a 10.5 mile distance from Talitha #A to Theta West.

The Theta West LBFF has now been proven as an extensive oil reservoir that
Pantheon can image and map with high confidence on its proprietary 3D seismic
data. As for all new oilfield discoveries, ultimate commerciality will require
long term production testing.

Jay Cheatham, CEO, said: "As was the case with our testing operation on the
Shelf Margin Deltaic at Talitha, extreme weather conditions have interrupted
testing Theta West. Crucially however, we have collected enough data to
confirm our expectations that we have discovered, and now appraised, an
extensive resource which we believe meets or exceeds our pre-drill estimates."

"We are very excited by this result at Theta West. This well is a successful
10.5 mile step-out from the LBFF oil bearing interval at Talitha. The test
result confirms a vast oil resource and also confirms our geologic model. Its
proximity to infrastructure gives Pantheon a strategic advantage over other
greenfield projects."

"After confirming the oil resource over this large area, our focus will now
shift to proving the deliverability of production wells which will commence
with the spudding of Alkaid #2 horizontal well, estimated for July 2022. By
utilizing a gravel pad immediately adjacent to the Dalton Highway, Pantheon
will operate without being limited to winter operations. This allows for a
horizontal well with appropriate stimulation, long-term flow testing and, if
successful, oil sales. We are confident of deliverability and excited for the
next step in our drilling programme."

"I want to congratulate the entire team for performing simultaneous operations
in this severe environment. This is a noteworthy accomplishment for any
operator on the North Slope. I remind shareholders that we have a 100% working
interest in all of our projects which are also located onshore USA, in an area
of low geopolitical and sovereign risk; something that is of great importance
in the context of recent global events."

Bob Rosenthal, Technical Director, said: "The Theta West result and testing
operations at Talitha #A have confirmed our geologic model and we are now on
the path to unlocking an enormous basin play. As previously announced, we
estimate the Theta West resource is in excess of a billion barrels of
recoverable oil and after encountering better reservoir parameters in a 950 ft
oil column, we expect this number to potentially increase."

"All these flow tests were designed to prove oil quality and deliverability in
a vertical well. Our reservoir engineers will be able to model the potential
flow rates from specifically designed horizontal production wells, which is
now industry standard practice on the North Slope. With the oil discovered in
the Shelf Margin Deltaic and Slope Fan System at Talitha, the Brookian section
at Alkaid, and the LBFF at Theta West,  Pantheon has an opportunity to
develop a number of large, discreet oil accumulations in an established oil
province adjoining export infrastructure, which we believe is unique. What a
great season this has been. We intend to host a Webinar in the coming weeks to
share our results and will provide details in due course."

 

 

Further information:

 

 Pantheon Resources plc                                             +44 20 7484 5361
 Jay Cheatham, CEO
 Justin Hondris, Director, Finance and Corporate Development
 Canaccord Genuity plc (Nominated Adviser and broker)
 Henry Fitzgerald-O'Connor, James Asensio, Gordon Hamilton          +44 20 7523 8000
 BlytheRay
 Tim Blythe, Megan Ray, Alice McLaren, 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.

 

For further information on Pantheon Resources plc, see the website
at: www.pantheonresources.com (http://www.pantheonresources.com)

 

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").

Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.

 

Cautionary Statement: The estimated quantities of hydrocarbons that may be
potentially recovered by the application of a future development project
relate to discovered and undiscovered accumulations. These estimates have both
an associated risk of discovery and a risk of development. Actual future
results could differ materially from estimates provided due a number of
conditions such as commodity prices, political, environmental or regulatory
developments, reservoir performance, technical and operating factors, future
drilling results and technical analysis and other factors.

 

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 Jay Cheatham, a qualified Chemical & Petroleum
Engineer, who has over 40 years' relevant experience within the sector.

 

Glossary

API - API gravity is a commonly used index of the density of a crude oil or
refined products. API stands for the American Petroleum Institute, which is
the industry organization that created this measure. A crude oil will
typically have an API between 15 and 45 degrees. Higher API indicates a
lighter (lower density) crude.

 

ENDS

 

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