Pantheon Resources announces Megrez-1 well discovery

Pantheon Resources plc, the oil and gas company developing the Kodiak and Ahpun oilfields in close proximity to pipeline and transportation infrastructure on Alaska’s North Slope, has announced the Megrez-1 well as a discovery in the eastern topsets in the Ahpun field. The well has reached Target Depth (TD) and the Company has run 5.5 in. production casing in anticipation of long-term testing commencing early 2025.

Key Points

Megrez-1 has discovered a large light liquids hydrocarbon column (based on logs and gas chromatography).
Log analysis indicates three hydrocarbon bearing zones over a ~1260 ft vertical section including the two primary objective formations.
Significant portions of the reservoirs encountered exhibited porosities above 20%, as anticipated pre-spud.
More accurate porosities and permeabilities will be determined after detailed analysis of whole cores has been completed.
Operations have been completed in line with time and cost budgets, comprising gathering a full suite of wireline logs including sidewall cores throughout the interpreted reservoir intervals and a whole core in one of them.

Preliminary analysis indicates that Megrez-1 has intersected multiple horizons containing light liquid hydrocarbons over some 2060 ft of measured depth (MD) (1260 ft vertical (TVD)). Multiple reservoirs were contained in this overall section consisting of interbedded sands and shales. All of the penetrated hydrocarbon bearing intervals are of Maastrichtian age. More specifically:

Top Set 1 from 5,950ft – 6,440ft TVD (7140 ft – 7940 ft MD) and Top Set 3 from 6440 ft – 6700 ft TVD (7940 ft – 8360 ft MD) are interpreted as containing light liquid hydrocarbons.
In addition to the topsets prognosed pre-drill, the well encountered the Upper and Lower Prince Creek formations (shallower top sets), interpreted as containing light liquid hydrocarbons over a 510 ft gross vertical interval from 5440 ft – 5950 ft TVD (6300 ft – 7140 ft MD).
The third and deepest top set originally prognosed to be penetrated (TS9) was not well developed in this location.
A 60 ft core was taken from 8298 ft – 9358 ft MD (6665 ft – 6702 ft TVD), within Top Set 3 with 100% recovery.
50 sidewall cores were taken across all three intervals interpreted as containing light liquid hydrocarbons.

Over the coming weeks and months, the Company will be evaluating a large data set gathered from the well, including whole core (which has been sent to independent labs for assaying), VAS analysis (Volatiles Analysis) of cuttings, logs and sidewall cores, with preliminary analysis estimated to be completed during February 2025. These analyses will be used to determine more detailed reservoir characteristics and begin the planned extensive long term production testing programme. This will benefit from the availability of the Nabors-105AC rig which is stacked on the Megrez gravel pad, adjoining the Dalton Highway, until required.

Bob Rosenthal, Technical Director of Pantheon Resources, said: “This is an excellent result, justifying our assessment of both the geological chances of success and the likelihood of encountering commercially viable resources. We are now evaluating the extensive data gathered in the well, which will take some time, but will provide us with maximum information to design well testing . Tony Beilman and the team have done a great job in delivering this well on time and budget, including gathering a full suite of wireline logs and a whole core. “It’s early days in the evaluation of the well results. The full significance of these results will become clearer once the data are analysed and after production testing, expected during 1Q25.”

In accordance with the AIM Rules – Note for Mining and Oil & Gas Companies – June 2009, the information contained in this announcement has been reviewed and signed off by David Hobbs, a qualified Petroleum Engineer and a member of the Society of Petroleum Engineers, who has 40 years’ relevant experience within the sector.