LONDON - Pantheon Resources plc (AIM:PANR, OTCQX: PTHRF), an oil and gas exploration company, has announced preliminary findings from the Megrez-1 well on Alaska's North Slope that suggest a significant increase in hydrocarbon resources. The company, which is developing the Kodiak and Ahpun oil fields, detailed the results during the Sequire Investor Summit today.
The analysis of logs, cores, and cuttings from the Megrez-1 well, conducted with AHS Baker Hughes (NASDAQ:BKR)' VAS service, revealed a total hydrocarbon column of 2,310 feet vertical thickness (TVT), surpassing the original estimate. This finding could lead to a 15% to 50% increase in resource estimates for the Upper Schrader Bluff and Prince Creek formations. Prior to drilling, these formations were estimated to hold 609 million barrels of oil.
Initial flow tests, scheduled to begin in Q1 2025 and last for 10 days each, are planned for the four originally identified oil horizons. Success in these tests is expected to reclassify the resources from prospective (2U (OTC:TWOUQ)) to contingent (2C).
Moreover, the company has identified three additional potential oil-bearing zones in the Lower Sagavanirktok Formation, which exhibit excellent porosity and permeability. These findings add approximately 1,620 feet of measured depth, equivalent to 1,040 feet TVT, and could represent substantial additional resource upside. If confirmed by further analysis, these zones will undergo flow testing before the well is potentially suspended as a future producer or injector.
All potential reservoirs are interpreted to contain oil with associated natural gas, with liquid hydrocarbons present throughout the entire estimated 2,310ft TVT gross column, which contains 1,340ft TVT interpreted as net pay.
Bob Rosenthal, Technical Director of Pantheon Resources, expressed excitement about the Megrez-1 well's potential, particularly given its location near the Trans Alaska Pipeline. David Hobbs, Executive Chairman, indicated that while it's early to estimate, the Ahpun Field's eastern conventional reservoir accumulations could rival those of the Kodiak field.
The company will continue to work on mapping the extent of these resources and developing a flow testing strategy. These developments are based on a press release statement from Pantheon Resources. Further updates on the analysis and any flow testing results will be shared when available.
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