7th February 2022
Pantheon Resources plc
Pantheon Resources plc ("Pantheon" or "the Company"), the AIM-quoted oil and gas company with a 100% working interest in all of its oil projects spanning c. 153,000 acres adjacent and near to transportation and pipeline infrastructure on the Alaska North Slope, is pleased to provide the following update:
Talitha #A - Flow Testing the Basin Floor Fan
The Company is pleased to announce that testing operations have now been completed on the Lower Basin Floor Fan ("BFF"), a Brookian aged horizon. Three separate 10 feet ("ft") intervals were perforated over 370 ft out of 600 ft of gross section, at 9405 to 9415 ft, 9205 to 9215 ft and 9045 to 9055 ft. These three intervals were individually stimulated and flow tested, producing high quality c. 35 to 39 degree API oil and averaging 73 barrels of oil per day ("BOPD") over a three day test period.
On the final day of testing, the well was flowing at a sustained rate of approximately 40 BOPD. Encouragingly, the bottom hole pressure is near to the reservoir pressure, thus providing an indication of the production potential of this portion of the oil accumulation, which is at the distal limits of the field. Future development wells would all be drilled horizontally and stimulated with multiple stage fracs, meaning that flow rates are expected to be many times higher.
The Company is greatly encouraged by these results given the optimal location for any development of the BFF is in a structurally higher position which is presently being drilled and tested at Theta West, 10.5 miles to the north west, where the BFF is the primary objective.
As a reminder, Talitha #A is a vertical test well drilled in 2021 which was located to target the Shelf Margin Deltaic ("SMD") horizon as the primary target, with other horizons as secondary targets given the well's sub optimal location for those reservoirs. Notwithstanding, the well has encountered several independent oil horizons, all of which were confirmed to be oil bearing; (i) the Shelf Margin Deltaic, (ii) the Slope Fan System, (iii) the Upper Basin Floor Fan, (iv) the Lower Basin Floor Fan, and (v) the Kuparuk. Independent 'Volatiles Analysis' undertaken by Advanced Hydrocarbon Stratigraphy / Baker Hughes during drilling Talitha #A took 416 cuttings over a 3700 ft section spanning these five horizons mentioned above, with every single sample confirming the presence of oil.
Theta West #1 - Operations Update
Theta West drilling is on track and on budget and is expected to reach total depth either today or tomorrow. Future drilling and testing results will be announced as received.
Jay Cheatham, CEO, said: "This is a great result and better than we had expected at this location, given that the Talitha #A well was positioned to prioritize the Shelf Margin Deltaic horizon. The BFF horizon in this well is in a downdip distal location with suboptimal reservoir qualities, over 10 miles from the ideal location. The objective of this test was not about flow rates; it was about confirmation that we had both movable and high quality light oil. We have achieved both of these objectives which is extremely encouraging for the entire BFF system. As is typical in Alaska, the future development of oil in BFF would be via horizontal wells which we anticipate being located in a structurally higher position, where superior reservoir parameters are expected compared to those encountered at this location.
"Whilst these flow rates exceeded our expectations, we must caution that, although this is very positive for Theta West, it does not guarantee success. We must wait to complete the drilling and for flow test results from the Theta West #1 well. However, we remain cautiously optimistic. The team is now moving up the hole at Talitha #A to continue our testing operation in the shallower zones."
Bob Rosenthal, Technical Director, said: "I am delighted with this result. As I recently stated in our webinar, the objective had never been about the flow rate in this location - it was about proving the movability of the oil and the quality of the oil - and we've succeeded on both objectives. The Talitha #A location sits at the edge of our conceptual development scenario for the targeted potential of 1.2 billion barrels of oil recoverable resource in the Lower Basin Floor. This is very promising given that we have mapped the BFF extending updip, all the way beyond Theta West. This means that, if drilling and testing is positive at Theta West, the implications for Pantheon are very significant indeed."
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