Pantheon Resources Pauses Megrez-1 Well Programme Following Disappointing Test Results
Pantheon Resources PLC (AIM: PANR, OTCQX: PTHRF) has paused operations at its Megrez-1 well in Alaska, following disappointing results from initial well tests. The company confirmed that it will proceed with a final test on a separate reservoir zone before determining the future of the current well programme.
The first test, conducted on the Lower Prince Creek formation without stimulation, yielded some initial oil and gas but was soon overwhelmed by water production. A subsequent test on the Upper Schrader Bluff Topset 1 zone revealed intense oil saturation, though it failed to produce oil at commercially viable rates.
Pantheon will now complete testing of the Lower Sagavanirktok 3 horizon, which could influence whether the company proceeds with testing the Upper Prince Creek and other Lower Sagavanirktok targets.
Chairman David Hobbs acknowledged the disappointing results so far, but reaffirmed the company’s broader strategic focus. “Following the Megrez programme, our attention will shift to the appraisal and development of our significant resource base on Alaska’s North Slope,” he said, referring to plans for the Ahpun commercial demonstration well, part of Pantheon’s wider initiative to support Alaskan LNG supply.
“This shift enables a clear focus on moving from exploration and appraisal to development and future production of our independently certified resource base,” Hobbs added.
Chief Executive Max Easley provided further technical insight, noting that the Lower Prince Creek zone displayed promising oil saturation and reservoir characteristics that, under typical circumstances, could support commercial output. However, the challenge lies in engineering a solution to unlock that potential.
“Both zones may still hold promise for future development, especially once permanent infrastructure is in place to allow longer-term, cost-effective flowback and processing,” Easley said.
Looking ahead, Pantheon is optimistic about the upcoming test in the Sagavanirktok interval, which features significantly higher porosity and permeability—characteristics that could support stronger flow rates.
