(Sharecast News) - Alaska North Slope-focussed oil and gas company Pantheon Resources updated the market on its operations on Monday, announcing that flow testing operations were complete on the Slope Fan System (SFS) - a Brookian-aged horizon - at Talitha A.
The AIM-traded firm perforated two separate five foot intervals at 8160 to 8165 feet and 7855 to 7860 feet, within two distinct 50 foot sand bodies, or 'lobes'.
It said the two intervals were stimulated and flow tested together, producing high quality 35-to-38 degree API oil, and averaging 45 barrels of oil per day over a three-day test period.
On the final day of testing, the well was flowing at a sustained rate of about 32 barrels per day from the combined 10 feet of perforations, which the company said was "highly encouraging" given production wells on the North Slope were drilled horizontally, which would typically result in materially higher flow rates.
"This is the first indication of producible oil in the Slope Fan on Pantheon's acreage, and has significant implications for future resource and recoverable oil estimates," the board said in its statement.
"The two SFS lobes are in two distinct trapping systems, and suggest very good reservoir properties.
"The company's initial analysis suggests that the deeper of the two lobes extends below the Alkaid Deep anomaly and will be assessed in the upcoming Alkaid #2 well, planned for summer 2022."
Pantheon had not previously provided guidance on potential resources for the SFS.
"The company is greatly encouraged by these results, and will provide an estimate of resource and recoverable oil in due course, once analysis is completed and the Talitha test results are fully integrated into resource assessments and future appraisal plans."
At Theta West 1, meanwhile, Pantheon said that after casing was set, an error by a third party service company contractor working on the rig floor had delayed testing operations.
A cement stage tool was improperly configured, placing cement inside the casing, rather than outside the casing as intended.
The company said it would now work to remove cement from within the casing, before performing a remedial cement squeeze job.
Pantheon said it expected that work to be completed this week, before conducting flow testing operations of the Basin Floor Fan.
The issue had cost time and money, but the company said it did not believe it had compromised the reservoir potential in any way.
"Once again we have an excellent result from the Talitha A testing," said chief executive officer Jay Cheatham.
"Similar to the Basin Floor Fan (BFF), we had two goals in testing the SFS - to prove we had moveable oil, and to prove high quality oil.
"We have achieved both of these."
Cheatham said he was on location in the flow-back trailer, and collected the crude personally, describing it as light and sweet.
"We exceeded original expectations with the flow rates achieved from these two sand bodies.
"We now believe the Slope Fan extends east near the Dalton Highway giving us additional potential resources developable from gravel along the highway," Jay Cheatham added.
"The issue encountered at Theta West typifies some of the frustrations in drilling and completions; thankfully we had a contingency built into our planning."
At 0958 GMT, shares in Pantheon Resources were up 3.95% at 134.72p.
Pantheon Resources plc (PANR)