6th Mar 2023 12:09
(Alliance News) - Pantheon Resources PLC on Monday reported that its Alkaid #2 well returned to production on February 21, after weeks of sand blockage in the wellbore.
The Alaska, US-focused oil and gas company said the quantum of liquid and gas production flowing without artificial lift demonstrates good deliverability of the reservoir.
"It is believed that this is Alkaid #2 specific, and accordingly, future wells, should be drilled deeper to avoid the gas cap and thus should produce a much improved GOR. Alkaid #2 has now produced for over 50 days and production has resumed in line with the pre cleanout decline profile," Pantheon Resources said.
The company said the production rate was about 505 barrels of liquid hydrocarbons per day, with 180 being oil and 325 bpd being condensate and natural gas liquids. It added that the 180 bopd are "Alkaid #2 specific" and not reflective of the Alkaid reservoir which produced flow test results of 108 bopd.
Technical Director Bob Rosenthal said the company believes its projects will be profitable in the future. He added: "We simply need to position future wells in better locations after having discovered and now successfully tested the reservoir. Our job now is to optimize drilling and completions to maximise the potential commerciality of Alkaid as well as continue to assess the potential of our other major discoveries which include our large discovery at Theta West."
Pantheon Resources shares fell 40% to 31.71 pence each in London on Monday morning.
Analysts at SP Angel said: "Today's announcement made clear that flow rates from the Alkaid #2 horizontal well, which represents the company's first long term production test in Alaska, were not compromised by a sand blockage across about 1,000 feet of the 5,000ft lateral, thereby calling into question management's understanding of the reservoir."
By Tom Budszus, Alliance News reporter
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