Pantheon Resources outlines plans to bring discoveries to production

Oil and gas exploration company Pantheon Resources updated the market on its Alkaid discovery and Talitha appraisal on Friday, reporting that pre-application meetings with state and federal agencies for the pilot production testing of the Alkaid discovery had now taken place, with “positive and supportive” feedback received.

The AIM-traded firm said no permitting issues were identified, and added that current planning could allow for the project to come on line as early as summer 2020, subject to completion and the timing of a successful farmout.

It said the Alkaid discovery was successfully flow tested in March, and was estimated to contain 900 million barrels of oil in place and between 90 million and 135 million barrels of oil P50 technically recoverable resource.

The nearby Talitha appraisal was estimated to contain an additional 900 million barrels of oil in place, and between 90 million and 135 million barrels of oil P50 technically recoverable resource.

On the farm-out process, the company said it was working closely with the technical experts at eSeis on the preparation of a data room, which was on target to open in July.

It also confirmed that it had already commenced discussions with several industry and financial groups.

Pantheon said it aimed to drill a minimum of two wells in winter and spring - most likely one at Talitha and one at Alkaid/Phecda - with first production possible in 2020.

“It is gratifying that our Alaskan operations are progressing at a rapid pace,” said chief executive officer Jay Cheatham.

“Our favourable location immediately adjacent to the Trans-Alaska Pipeline System pipeline and Dalton Highway has allowed our Alaskan team to plan an extremely rapid pilot production test timeline at our Alkaid discovery and Talitha appraisal program.

“Given a successful farmout, Pantheon could be in production yielding critical reservoir data and cash flow next summer, initially trucking oil north on the main highway to Deadhorse Alaska, only 20 miles north of Alkaid.”

Cheatham said it was “testament” to the firm’s Alaskan team that it was able to get the Alkaid well tested this past winter from a January start.

“I'm also pleased eSeis will have the data room ready in Houston this month.

“We have made a material discovery at Alkaid/Phecda, with genuine potential for this to grow.”

Given the size, scale and the rapid development opportunity compared with other Alaskan projects, the board anticipated “great interest” in the farm-out process, Cheatham explained.

“We've already been approached by several industry and financial groups and our technical staff have begun preparatory discussions.”