Pantheon Resources PLC (AIM: PANR, OTCQX: PTHRF) has announced plans to begin flow testing at its Megrez-1 well on Alaska’s North Slope later this month.
The testing will assess six of the seven identified pay zones in the well, with analysis suggesting potential flow rates ranging from 200 to 2,000 barrels of oil equivalent per day per zone.
“These flow tests could be transformative for the company, both in terms of our overall resource base and commercial production potential,” said Chair David Hobbs in a statement.
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
Chief executive Max Easley added: “Successful flow tests in the deeper zones would confirm their potential for future 10,000ft lateral completions from the Megrez Pad, integrating them into the broader Ahpun development plan. This approach would leverage existing processing infrastructure to enhance economic returns.
“Meanwhile, positive results from the shallower horizons could support a fully conventional development, similar to the Pikka and Willow fields, utilizing secondary and tertiary recovery techniques.”
Pantheon emphasized that the primary objective of the testing is to gather high-quality data rather than maximize initial flow rates. The results will be used to refine resource estimates and optimize future appraisal and development strategies.
