2nd Dec 2025 10:37
(Alliance News) - Pantheon Resources PLC on Tuesday reported a cost overrun of approximately USD8 million for its Dubhe-1 well in Alaska, as it continues well clean-up operations until it can determine a representative oil flow rate.
Shares in Pantheon plummeted 21% to 19.98 pence on Tuesday morning in London.
The oil and gas company focused on developing the Ahpun and Kodiak onshore oil fields in Alaska said the final cost for drilling and completing Dubhe-1 was approximately USD33 million.
In May, Pantheon had expected the cost to be consistent with historical costs of approximately USD25 million, comprising approximately USD10 million for drilling the well and around USD15 million for well completion.
The company said the costs overran due to decisions made to better refine the target zones, as well as contingency measures and price inflation. The costs for clean-up, flow-back and well testing operational costs will be determined at the end of the programme, Pantheon said.
Initial production had been dominated by previously injected stimulation fluids, the company said. In the programme to date, approximately 40% of the injected water volume has been recovered with steady gas production alongside a modest production of light oil.
Pantheon plans to continue the well clean-up until it can determine a representative oil flow rate.
The company added that the cost increase does not "does not detract from a solid operating performance."
Chief Executive Max Easley said: "I continue to be pleased with the ongoing safe and efficient execution of our operations to date and look forward to sharing more about Dubhe-1 results when we have them."
By Roya Shahidi, Alliance News reporter
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