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‘ Spudding of Alkaid #2 Well
Operations have commenced on the Alkaid oil accumulation with the spudding of Alkaid #2, the Company's first horizontal well on the ANS, using the Nabors 105AC drill rig. The rig is larger than those previously used, with increased capacity, and can undertake multiple functions. As of 8 PM BST on 6 July, Pantheon was drilling ahead at a depth of approximately 300 feet.
The Alkaid #2 well will assess three impactful objectives over multiple formations:
(i) Production testing a proven oil formation encountered in Alkaid #1
(ii) Exploring the deeper potential for oil in that zone
(iii) Appraising an extension of oil discovered in the Shelf Margin Deltaic at Alkaid #1 and Talitha #1. ’
Alkaid #1 tested an average of over 100 BOPD via a small "through-tubing single frac", which perforated six feet of the 240 feet net pay interval. Alkaid #2 will test this same zone through a long horizontal section accessing several thousand feet of oil bearing section.
Deeper Exploration Potential
Alkaid #2 also has significant exploratory potential immediately below the total depth at Alkaid #1. As part of the current drilling programme, the Company intends to evaluate the extent of this deeper oil column.
Alkaid #1 was terminated within the oil zone at a time when regional flooding of the Dalton Highway occurred. Based on seismic and other analytical analysis, the Company believes the Alkaid horizon's oil zone is substantially thicker than drilled to date, offering the potential for additional resource growth to that outlined above and which will be assessed in the Alkaid #2 well. This increased resource potential combined with current oil price forecasts, as opposed to the $55/bbl used by the Independent Expert in 2020, could have a material impact on any new resource valuation.
Appraisal of Shelf Margin Deltaic ("SMD").
Panr rns dated 7/7/22
‘ Spudding of Alkaid #2 Well
Operations have commenced on the Alkaid oil accumulation with the spudding of Alkaid #2, the Company's first horizontal well on the ANS, using the Nabors 105AC drill rig. The rig is larger than those previously used, with increased capacity, and can undertake multiple functions. As of 8 PM BST on 6 July, Pantheon was drilling ahead at a depth of approximately 300 feet.
The Alkaid #2 well will assess three impactful objectives over multiple formations:
(i) Production testing a proven oil formation encountered in Alkaid #1
(ii) Exploring the deeper potential for oil in that zone
(iii) Appraising an extension of oil discovered in the Shelf Margin Deltaic at Alkaid #1 and Talitha #1. ’
Alkaid #1 tested an average of over 100 BOPD via a small "through-tubing single frac", which perforated six feet of the 240 feet net pay interval. Alkaid #2 will test this same zone through a long horizontal section accessing several thousand feet of oil bearing section.
Deeper Exploration Potential
Alkaid #2 also has significant exploratory potential immediately below the total depth at Alkaid #1. As part of the current drilling programme, the Company intends to evaluate the extent of this deeper oil column.
Alkaid #1 was terminated within the oil zone at a time when regional flooding of the Dalton Highway occurred. Based on seismic and other analytical analysis, the Company believes the Alkaid horizon's oil zone is substantially thicker than drilled to date, offering the potential for additional resource growth to that outlined above and which will be assessed in the Alkaid #2 well. This increased resource potential combined with current oil price forecasts, as opposed to the $55/bbl used by the Independent Expert in 2020, could have a material impact on any new resource valuation.
Appraisal of Shelf Margin Deltaic ("SMD").
Panr rns dated 7/7/22