LONDON (Alliance News) - Pantheon Resources PLC and 88 Energy Ltd on Wednesday said the Western blocks, located on the onshore North Slope of Alaska, will be assessed for their exploration potential in the coming months.
88 Energy holds 36% in the Winx-1 well and is the operator, Pantheon Resources has a 10% stake, and Red Emperor Resources PLC holds 32%.
The AIM-listed oil & gas exploration companies said data obtained from the drilling of the Winx-1 well will now be integrated into the existing dataset. In addition, 88 Energy will evaluate the remaining resource potential of the acreage.
"Winx-1 was a single wellbore penetration in a large acreage position, and the data gathered will allow a better analysis of the updip potential of the play which remains prospective," said Pantheon Chief Executive Jay Cheatham.
Turning to the Pantheon's Alkaid well, also in the North Slope of Alaska, the vertical test well was drilled in 2015 but was not tested at that time due to extensive flooding to the region. The well was suspended to avoid equipment being stranded at location after logging all zones.
The data obtained confirmed indications of oil in three independent horizons, with a resource estimate of 549 million barrels of oil.
The intention is to flow test each of these horizons independently and sequentially, working from deepest to shallowest, Pantheon explained.
The first and deepest of these horizons, the ZOI, has now been fracked and flow testing of this zone is expected to begin over the next 24 hours.
The company intends to report results of the well at the conclusion of drilling operations, after each of the three prospective zones have been flow tested, it said. It is estimated all operations will need to be concluded mid-to-late April.
"Flow testing at Alkaid is now imminent and should we be successful then there are significant follow-on drilling opportunities in the area," added Cheatham.
Meanwhile, 88 Energy said a fast track farm-out process for the Icewine conventional project, which started in August last year, is still underway. The company explained the delay is due to the potential farm-in partners wanting more time to evaluate the project.
The farm-out process has now progressed to the next stage, 88Energy assured, with a preferred bidder selected and discussions underway. However, the company said there is no guarantee that the parties will agree terms and close out the transaction.
"The progression of the farm-out process to the preferred bidder phase is encouraging but no deal is done until it is done," said 88 Energy Managing Director Dave Wall.
At the Icewine unconventional project, 88 Energy said it continues to receive third party interest in the project and anticipates to begin a formal farm-out process in mid-2019.
88 Energy shares were trading 2.6% higher on Wednesday at 0.79 pence each, while Pantheon shares were up 7.7% at 20.15p each.
