Pantheon Hits Multiple Oil Reservoirs At Second Alkaid Well

Pantheon Hits Multiple Oil Reservoirs At Second Alkaid Well
Pantheon Resources has reached the total depth at Alkaid #2 well, hitting multiple oil-bearing reservoirs.

Pantheon Resources has reached the target vertical depth at the Alkaid #2 pilot hole in the Alaska North Slope, hitting a total vertical depth of 8,584 feet, with a measured depth of 8,950 ft, having encountered multiple oil-bearing reservoirs in all three targeted formations in the well, the Shelf Margin Deltaic, the Alkaid Anomaly, and the deeper, untested extension of the Alkaid Anomaly (Alkaid Deep).

The Alkaid #2 well is located adjacent to the Dalton Highway and Trans Alaska Pipeline System (TAPS) which are the main transportation highway and export pipeline, respectively, and approximately 4.5 miles from the Alkaid #1 discovery well drilled in 2015.

Initial analysis indicates significant improvements in reservoir quality which could potentially lead to a material upgrade of the current resource for all targeted horizons.

Analysis of data received to date confirms the company's ability to accurately predict the presence of light oil-bearing reservoirs using 3D seismic data, and geological and geophysical capabilities, further enhancing confidence in development planning and expected outcomes.

All reservoirs were encountered on prognosis at predicted depths with reservoir quality exceeding pre-drill expectations.

Alkaid #2 confirms more than 1,400 ft of gross continuous oil-bearing strata throughout the section drilled below the regional top seal at 7,165 ft down to at least the 8,584 ft total vertical depth. Under instruction from the Alaska Oil and Gas Conservation Commission (AOGCC), drilling was stopped at 8,584 ft, despite not having reached the bottom of the Alkaid Deep section, to allow a sufficient margin to avoid contact with the high-pressure HRZ zone and possible fault.

Sidewall coring has been completed throughout the oil-bearing section and analysis is underway.

Comprehensive Volatiles Analysis ("VAS") has commenced following the collection of sealed well samples every 10 ft throughout the entire target interval from 7,100 ft measured depth to a total depth of c.8,950 ft.

The company is now preparing to move up the wellbore for drilling of the horizontal section in the Alkaid Anomaly (primary objective), before casing, stimulating, and ultimately flow testing the well.  Pantheon believes that in a development scenario, future wells will be drilled with +/- 8,000 ft horizontal sections. However, this being the first well in the area, a more conservative approach will be taken with a shorter lateral simply to minimize operational risk. The company expects to provide a further update to shareholders once the horizontal well has been drilled and cased, but before testing.

"I am delighted that the results so far have exceeded our pre-drill expectations. If we achieve a positive flow test on the horizontal section of this well, it will have major positive implications for our Company, proving the deliverability and validating our models. I look forward to keeping the market updated with our progress at this exciting time," said, Jay Cheatham, CEO of Pantheon Resources.

"Our analysis to date has been overwhelmingly positive. Confirming the presence of the various horizons exactly in the locations we expected gives us great confidence in our subsurface modeling efficacy", added Bob Rosenthal, Technical Director. "The results of logging while drilling demonstrate the clear potential for a material upgrade of both the current Alkaid and SMD resources. Though we were unable to assess the maximum depth of Alkaid Deep due to the regulator's requirements, the entire section that we did log was oil saturated giving which is extremely promising".

"Alkaid #2 marks Pantheon's transitioning process from explorer to producer, where we now begin to focus on optimizing the development of these large resources. The potential development of two large and separate oil fields sitting on top of each other, the SMD and Alkaid Anomaly respectively, utilizing the same production infrastructure on the Dalton Highway with near-term production opportunity, is rare and very exciting".

"We have discovered a huge amount of oil on the ANS across our Theta West, Talitha, and Greater Alkaid projects which are estimated by management to contain over 23 billion barrels of Oil in Place and over 2.3 billion barrels of recoverable resource in those horizons that have flowed oil, and Alkaid #2 could add to these estimates," concluded Rosenthal.

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