TIDMPANR
RNS Number : 9456D
Pantheon Resources PLC
25 October 2022
25 October 2022
Pantheon Resources plc
Operational Update, Alkaid #2 Well
Pantheon Resources plc ("Pantheon" or "the Company"), the AIM
listed 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 ("ANS") , is pleased to provide the following operational
update:
Alkaid #2 - Operational Update
Production testing operations at Alkaid #2 have commenced with
the well in the clean-up phase and showing positive early
indications of oil production from the reservoir. During this
clean-up phase, in addition to the fluid production, the strong
flow back has yielded frac sand production higher than expected,
which is not uncommon in similar completion procedures.
The Alkaid #2 well is being shut in as part of the planned
procedure to transition from temporary flow back facilities to
larger permanent facilities, and a coiled tubing unit will be used
to clean out the wellbore. Additionally, Pantheon will undertake a
pressure build-up operation by placing a pressure "bomb" in the
production packer and allowing formation pressure to increase for
several days. This will allow for analysis of multiple reservoir
parameters and is a standard reservoir engineering analytical
tool.
The operations to date have recovered approximately 10% of the
frac fluid used, with oil cuts averaging from 8% to 12%. Typically,
a better indication of ultimate production performance can be
ascertained after recovering over 40% of the frac fluid, which the
Company expects to achieve over the coming weeks.
Alkaid #2 has produced initial fluid flow with rates in the
thousands of barrels per day, including a strong sand production
response which the Company will address to ensure sand is not
restricting the wellbore. Pantheon is awaiting delivery of a coiled
tubing unit to clean out the well bore prior to recommencement of
flow test operations.
Jay Cheatham, CEO, said: "We have seen promising indications of
reservoir performance, with oil cuts showing early in the flow back
process. Often, the first real indications of oil occur much later.
Whilst the production of frac sand is inconvenient, as is the
waiting time for obtaining a coiled tubing unit, it is not an
uncommon occurrence in multistage fracture stimulation completions
in conventional reservoirs and will be dealt with once the unit
arrives. We hope to complete our clean-up programme at Alkaid #2
over the next several weeks and we will announce the results of
flow testing once complete.
"It is encouraging that the reservoir response to the
stimulation procedure has been very good, as we have experienced
strong initial fluid flows measured in the thousands of barrels per
day. Remember, these are conventional reservoirs that have superior
reservoir qualities compared to shales, and given it is our first
well completion applying stimulation techniques in these reservoirs
it requires a little patience as we better understand our reservoir
characteristics on the North Slope.
"Whilst the early data is very encouraging, I reiterate my
previous statements that we cannot make a definitive assessment of
the ultimate commerciality of the well until flow testing
operations have concluded. However, we remain optimistic."
Michael Duncan, VP Operations & Engineering, said: "As our
first horizontal well on the North Slope, we are quickly learning
how this formation produces and responds to various flow
parameters. We are very early in flowback and cleanup with only 10%
of frac fluid recovered, yet significantly, we have already seen
oil production which is greatly encouraging.
"Prior to entering initial production, it is common practice to
clean out a wellbore. We are using a planned outage for tie-in of
our permanent facilities to perform a well pressure build up as
well as the wellbore clean out. It has been a good operating season
thus far, and we eagerly anticipate having a fully operational
system soon. The production of frac sand is a nuisance which has
cost us some time during the early stages of flowback, however is
not believed to change the potential of the well."
Glossary
Pressure bomb A thick-walled container, usually steel, used to
hold devices that determine and record pressure
or temperature in a wellbore
-Ends-
Further information:
Pantheon Resources plc +44 20 7484 5361
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate
Development
Canaccord Genuity plc (Nominated Adviser
and broker)
Henry Fitzgerald-O'Connor, James Asensio,
Gordon Hamilton +44 20 7523 8000
BlytheRay
Tim Blythe, Megan Ray, Madeleine Gordon-Foxwell +44 20 7138 3204
In accordance with the AIM Rules - Note for Mining and Oil &
Gas Companies - June 2009, the information contained in this
announcement has been reviewed and signed off by Jay Cheatham, a
qualified Chemical & Petroleum Engineer, who has over 40 years'
relevant experience within the sector.
Notes to Editors
Pantheon Resources plc is an AIM listed Oil & Gas company
focused on several large projects located on the North Slope of
Alaska ("ANS"), onshore USA where it has a 100% working interest in
153,000 highly prospective acres with potential for multi billion
barrels of oil recoverable. A major differentiator to other ANS
projects is its close proximity to transport and pipeline
infrastructure which offers a significant competitive advantage to
Pantheon, allowing for materially lower capital costs and much
quicker development times. The Group's stated objective is to
create material value for its stakeholders through oil exploration,
appraisal and development activities in high impact, highly
prospective conventional assets, in the USA; a highly established
region for energy production with infrastructure, skilled personnel
and low sovereign risk. All operations are onshore USA, with
drilling costs materially below that of offshore wells.
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) incorporated into, or forms part of, this
announcement. The information contained within this announcement is
considered to be inside information prior to its release.
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END
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