14th Apr 2025 10:14
(Alliance News) - Pantheon Resources PLC on Monday said the first interval tested at its Megrez-1 well in Alaska did not yield hydrocarbons, but it said the data collected supports optimism for the five shallower intervals yet to be tested.
Shares in Pantheon Resources were down 45% to 28.50 pence in London on Monday morning. The stock is down 19% over the past 12 months.
The oil and gas explorer in the North Slope of Alaska said it fracture stimulated the Topset 1, or TS1, reservoir zone across a 290-foot section, which produced strong liquid flow rates exceeding 1,000 barrels per day over 12 days of testing. However, no significant oil or gas was recovered.
Pantheon said preliminary analysis suggests the zone is a "transition zone" with residual oil present but insufficient to sustain flow to the surface. The water produced had high salinity, supporting the conclusion.
"Whilst at face value it appears disappointing...the data we gathered leaves us with increased confidence in the five shallower and more productive horizons," said Chief Executive Officer Max Easley.
The company plans to proceed with testing the Lower Prince Creek formation next, once high-pressure pumping equipment is mobilised. The full programme includes six intervals.
Pantheon is developing the Kodiak and Ahpun oil fields on Alaska's North Slope and holds certified resources of 1.6 billion barrels.
By Eva Castanedo, Alliance News reporter
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