LONDON – Pantheon Resources PLC (AIM:PANR, OTCQX: PTHRF) has announced a potential increase in resource estimates on its Megrez-1 well on Alaska’s North Slope, following preliminary analysis of log, core and cuttings data. The oil and gas company, which is developing the region’s Kodiak and Ahpun oil fields, predicts a 15% to 50% increase in resources for the eastern tip of the Ahpun field based on new discoveries.
CTO Bob Rosenthal said the Megrez structure could trap a larger oil pool than originally expected, with the well intersecting seven horizons interpreted to contain liquid hydrocarbons at a measured depth of 3,682 feet (actual vertical thickness 2,425 feet). Analysis, which included the use of AHS Baker Hughes (NASDAQ:)’ Volatile Analysis Service (VAS), detected oil associated throughout the column.
Preliminary volumetric analysis suggests a significant increase in management’s best estimates of expected ultimate recoverable resources, potentially 15% to 50% over pre-drilling estimates. The company expects to reclassify the prospective resources to contingent resources upon successful flow testing, which is scheduled to begin in the first quarter of 2025 with four initial tests of 10 days each, targeting the Upper Schrader Bluff and Prince Creek formations.
In addition to the four oil horizons originally identified, three additional potential oil-bearing zones have been identified in the Lower Sagavanirktok Formation, which could lead to three additional flow tests before the well is suspended as a potential future producer or injector.
CEO David Hobbs said the commercial significance of the Megrez-1 well will be better understood after testing all zones, but preliminary analysis indicates the best recovery estimate for the entire Ahpun field could compete with that of the Kodiak field.
The company has taken a cautious approach while technical interpretation continues and will share further analysis and any flow test results as they become available. This announcement is based on a press release from Pantheon Resources PLC.
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