LONDON – Pantheon Resources plc (AIM:PANR, OTCQX: PTHRF), an oil and gas exploration company, announced preliminary findings from the Megrez-1 well on the North Slope of Alaska that suggest a significant increase in hydrocarbon resources. The company, which is developing the Kodiak and Ahpun oil fields, detailed the results during today’s Sequire Investor Summit.
Analysis of logs, cores and cuttings from the Megrez-1 borehole, performed with AHS Baker Hughes (NASDAQ:)’ VAS service, discovered a total hydrocarbon column of 2,310 feet of vertical thickness (TVT), surpassing the original estimate. This discovery could lead to a 15% to 50% increase in resource estimates for the Upper Schrader Bluff and Prince Creek formations. Before drilling, these formations were estimated to contain 609 million barrels of oil.
Initial flow tests, scheduled to begin in the first quarter of 2025 and lasting 10 days each, are planned for the four originally identified oil horizons. Success in these tests is expected to reclassify the resource from prospective (2U (OTC:)) 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 finds add approximately 1,620 feet of measured depth, equivalent to a TVT of 1,040 feet, and may represent a significant additional resource source. If confirmed by further analyses, these zones will undergo flow testing before the well is potentially suspended as a future production or injection well.
All potential reservoirs are interpreted to contain oil with associated , with liquid hydrocarbons present throughout the estimated TVT gross column of 2,310 feet, which contains a TVT of 1,340 feet interpreted as net pay.
Bob Rosenthal, CTO of Pantheon Resources, expressed excitement about the potential of the Megrez-1 well, especially given its location near the Transaljasky pipeline. David Hobbs, executive chairman, indicated that, although it is too early to estimate, the eastern conventional accumulations of the Ahpun field 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. This development is based on a press release from Pantheon Resources. Further updates on the analysis and any flow test results will be posted as they become available.
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