20th May 2019 09:43
LONDON (Alliance News) - Pantheon Resources PLC on Monday said interpretation of data from its Alkaid discovery well on the Alaska North Slope indicates a reservoir quality "greatly superior to pre-drill estimates".
Shares in the oil and gas exploration company were up 3.8% at 18.87 pence each in morning trade.
The wellbore at the discovery well has been suspended and freeze protected and data analysis is ongoing. Interpretation of the data so far suggests the reservoir quality within the primary zone of interest, the Brookian formation, is better than previously estimated.
This result "should have positive implications" in terms of possible reserve and potential production from the Alkaid prospect, Pantheon Resources said.
The Brookian zone of interest has an estimated 400 feet of gross pay and 240 feet of net pay. Of this, a six foot internal was perforated and stimulated to flow more than 100 barrels of light oil per day.
Subsequent development wells are to be drilled horizontally and then multi-stage fracked. This is typical for the area and is likely to improve flow rates compared to a vertical test well.
Patheon has begun the permitting process for the pad adjacent to the haul road and the pipeline for long-term production testing. It has also contracted a "leading expert" consultancy to undertake additional work over the prospect inventory.
The company is awaiting the conclusions of the petrophysical analysis of the prospect. However, once this is received, the company will conduct a chief executive question & answer podcast to give a more comprehensive overview. This is expected to happen next week.
Chief Executive Jay Cheatham said: "Alkaid is a seismic anomaly delineated using high tech geophysics - the same technique used so successfully across the North Slope of Alaska to discover very large oilfields with very high drilling success rates. Of great importance, it has proved to us that our high-tech geophysics model works, which is exactly what we wanted to see."
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