Pantheon Resources intersected two reservoirs near the bottom of its Talitha-A exploration well that, combined, likely hold roughly 1.4 billion barrels of recoverable light oil and more than 12 billion barrels of oil in place, according to Technical Director Bob Rosenthal.
The promising results from the Talitha well drilled and tested last winter transforms the prospect called “Theta West” within the company into an oil project, Rosenthal said.
Pantheon did the drilling approximately 10 miles from what would normally be the best location for a well targeting the Brookian Upper and Lower Basin Floor Fan formations that contain the discovery because the primary target for Talitha-A was a shallower zone known as the Shelf Margin Deltaic that the company was unable to test before spring put an end to the North Slope exploration season.
“We actually drilled this well 1,500 feet down-dip from the crest and we are actually 10 miles down-dip from its location, so this trap is huge,” Rosenthal described in an interview.
Advertisement “We’ve drilled a huge step-out appraisal well before we drilled the crest location.”
Pantheon merged with Anchorage independent explorer Great Bear Petroleum in early 2019 and the blended operating company Great Bear Pantheon is conducting the fieldwork.
Rosenthal was a founding member of Great Bear, which previously explored the area about 20 miles south of Prudhoe Bay along the Dalton for years, first focusing on shale oil prospects and then shifting its focus to conventional plays after the oil market reset of 2015-16.
Pantheon leaders are particularly confident in their assertions about the first test results from Talitha-A because the company is also working off of data from the nearby Pipeline State-1 well drilled in 1988 by Arco that — combined with modern 3-D seismic data — has helped give them a better sense of what the rocks in the area hold.
In that sense, Talitha-A is not a true wildcat exploration well.
The Basin Floor Fan complex was also identified in data from the Pipeline State well, according to Rosenthal. He said previously that even though the 10,000-foot vertical Pipeline State-1 well has a roughly 2,200-foot oil-bearing column over four reservoirs, with the technology and oil prices of the late 1980s it did not add up to a viable prospect at the time.
Rosenthal said before the initial well tests that Talitha A was similarly expected to have an oil-bearing zone of roughly 2,000 feet in the wellbore of about 10,200 feet but that has since grown to approximately 3,700 feet of oil-bearing rocks, according to a company statement.
CEO Jay Cheatham also said prior to drilling that he thought Theta W
"Using the same read across we are a couple of penny stock bloggers away from a $7.5B rerating lol."
It is very interesting isn't it? Rational expectations theory dictates that a market is in permanent equilibrium and that deviations are in the nature of a random walk. Rational expectations treats markets as a passive reflection of the so-called 'fundamentals'.
Yet the SP performance of both PANR & 88e are in such blatant conflict with rational expectations that one is tempted to dismiss fundamental analysis out of hand.
Markets reflect the biased judgements of the participants and are manifestly open to manipulation. Biased judgments are not merely passive, but reflexive. They affect the course of events and, ultimately, the so-called fundamentals.
That is the process at work and that is the way I approach my AIM holdings. The PR effort is of some importance.
"... yes there will be a sweet spot but if there really is that much oil there they should be seeing it." Have you even watched the presentation? Hundreds of rock samples were taken and EVERY sample was oil bearing! If that's not 'seeing', I don't know what is.
" The press release certainly did not accentuate the good news - I am not sure anyone reading it was able to get past the disappointment of the Kuparuk headline flow rate number. I was expecting nearer 500 bopd but truly believe that flowing any oil was a good result with the benefit of hindsight."
My investment was never predicated upon the Kuparuk. It was based upon the Talitha SMD. It was sustained upon an appreciation of the scale of what we might have in Theta West. That play is now my major focus. I was disappointed not to get a flow test, but will be interested in the data that the company has actually obtained. The webinar is going to be fascinating and, in my view, the most significant yet.
In my experience, yes. As you know, I trade in relatively modest amounts. L2 likewise assists in the nimbleness of any purchase/sale, and in gauging direction/inflection 'on the day'. In my opinion, those using it have a significant advantage over those wedded solely to the fundamentals. Used in concert with charting, one has a set of very powerful tools. We are dealing, at all times, with trend following behaviour. Social phenomena are of much greater significance than any so-called fundamentals. L2 is a more detailed reflection of social phenomena than the nominal price alone. We can see who is really out there!
"Doesn't matter which way you paint it, this RNS has not met expectations"
I don't think that's right. We have a delay, blizzards aren't exactly uncommon. I take comfort from the fact that testing operations are finally underway and that the company believes that it has a number of pay zones. It'll do for now.