12th Jul 2019 10:59
(Alliance News) - Pantheon Resources PLC said on Friday that production from its Alkaid discovery in Alaska could begin by the summer of 2020, subject to a farmout agreement.
The discovery was flow tested in March, and the oil and gas exploration company estimates that Alkaid and the nearby Talitha appraisal could contain 900 million barrels of oil each.
Pantheon said that it has already begun talks with industry and financial groups about the possibility of a farmout agreement. Jay Cheatham, the chief executive, said the scale of the Alaskan projects, will likely generate "great interest" in an agreement.
Cheatham said: "It is gratifying that our Alaskan operations are progressing at a rapid pace. Our favourable location immediately adjacent to the Trans-Alaska Pipeline System pipeline and Dalton Highway has allowed our Alaskan team to plan an extremely rapid pilot production test timeline at our Alkaid discovery and Talitha appraisal program.
"Given a successful farmout, Pantheon could be in production yielding critical reservoir data and cash flow next summer, initially trucking oil north on the main highway to Deadhorse Alaska, only 20 miles north of Alkaid."
Pantheon aims to drill at least two wells in late 2019 and early 2020, with one expected from Talitha and another from Alkaid.
Meetings with regulators for the pilot production testing of Alkaid were successful, with no permitting issues identified, Pantheon said.
Shares in the company rose 3.2% at 19.55 pence each in London on Friday morning.
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