(Alliance News) - Pantheon Resources PLC on Thursday said the first phase of its subsurface geological projects - a reservoir model - has been completed.
The Alaska-focused oil and gas company based in London said that oil service company Schlumberger Ltd had produced the static and dynamic reservoir model, covering Pantheon's four oil reservoirs within its acreage footprint: Alkaid, the Slope Fan System, the Shelf Margin Deltaic and the Basin Floor Fan System.
The model, which is made up of 13 million individual three-dimensional cells within Pantheon's 153,000 acreage, is used to evaluate Pantheon's oil resource and its productive potential.
Pantheon said the reservoir modelling had estimated that a total of 17.80 billion barrels of oil was contained in the company's reservoirs, including 1.67 billion at the Alkaid unit. A previous company estimate suggested that there were 23 billion barrels of oil in place at its four reservoirs.
Schlumberger also forecast an initial production rate of 775 barrels of oil per day for 30 days at Alkaid, which Pantheon says is in line with its prediction of 150 bopd per 10,000 feet. Schlumberger forecast a rate of 1,060 bopd for 30 days at Theta West BFF and 791 bopd for 30 days at Talitha SMD.
"The results further bolster our own confidence. Applying management's estimate of recovery factor of 10% to [oil in place] calculates over 1 billion barrels of recoverable oil onshore USA adjoining major underutilized export infrastructure in a stable tax and royalty environment," Chief Executive Officer John Cheatham said.
Pantheon also said that it is in a production testing operation at Alkaid #2 - 4.5 miles from the Alakid #1 well, but that commerciality cannot be determined until flow testing has concluded. "Alkaid #2 is a case of so far, so good," Cheatham said.
Pantheon shares were 13% lower, trading at 84.70 pence per share on Thursday morning in London.
By Harvey Dorset, Alliance News reporter
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Pantheon Resources plc (PANR)