Pantheon Resources PLC (AIM: PANR, OTCQX: PTHRF) has concluded flow testing at its Megrez-1 exploration well in Alaska. Results from the remaining zones have been equally disappointing.
In a market update, the company reported that two Lower Sagavanirktok 3 Formation intervals were perforated and lifted using nitrogen. Although the well produced more than 2,000 barrels of liquid daily, no significant oil or gas was recovered.
Pantheon sought to reassure investors by stressing that the outcome at Megrez-1 does not affect the independently certified resources at its Ahpun and Kodiak projects, which include 1.57 billion barrels of marketable liquids and 6.6 trillion cubic feet of natural gas.
Forward Work Programme
-
Ahpun Field Development:
Preparations are ongoing for the development of the Ahpun field, focusing on facilities design, well planning, and progressing through the regulatory application process. Pantheon’s goal is to reach cash flow self-sufficiency and secure sustainable market recognition of at least $5 per barrel of recoverable resources by 2028, while aiming to minimise dilution for existing shareholders. -
Dubhe-1 Commercial Demonstration Well:
Planning is progressing for the Dubhe-1 well, a commercial demonstration project located in the western topsets of the Ahpun field. This well is intended to support the development of Alaska LNG Phase 1 (pipeline). Operations are expected to begin in summer 2025.
Max Easley, Chief Executive Officer of Pantheon Resources, commented: “The production testing of Megrez-1 is now complete. It is disappointing that no mobile oil was discovered in the tested intervals despite observed reservoir properties prior to testing. The Company will now fully focus on the development of the established Ahpun and Kodiak discovered resources, where we already have independently certified contingent resources of 1.57 billion barrels of marketable liquids (ANS Crude) 6.6 Trillion Cubic Feet of natural gas, and to achieve positive cash flow generation.”
