Rig mobilising to drill appraisal well for Pantheon Resources

(Sharecast News) - Pantheon Resources confirmed in an update on Thursday that the Nabors 105AC rig was now mobilising to the Dubhe-1 pad on Alaska's North Slope, where it would drill an appraisal well targeting the Ahpun Topset reservoir, previously referred to as SMD-B. The AIM-traded firm said the well aimed to support the development of the Ahpun project and may lead to further resource upgrades.

Dubhe-1 would assess the key topset horizon and test additional zones, including the Lower Prince Creek, SMD-C, and a slope fan structure.

The company said it was also planning for a potential lateral completion and long-term flow test, which would seek to prove the deliverability of oil and pipeline-quality associated gas.

Pantheon noted that an independent experts report by Cawley Gillespie & Associates, published in June last year, estimated 2C contingent resources at the Ahpun Topsets of 282 million barrels of marketable liquids and 804 billion cubic feet of gas.

The report assigned a $1.7bn NPV10 valuation to the liquids at $80 oil.

Management said it believed the Dubhe-1 well could deliver significant news flow and potential resource upgrades.

"The pre-drill prognosis indicates that the target zone at Dubhe-1 has the potential to be thicker than Pipeline State 1 and Talitha-A," the company said, adding that this could support a more extensive development inventory via techniques such as "wine-racking."

The company also confirmed that 95.8 million new ordinary shares, issued as part of a recent placing and bond conversion, were expected to be admitted to trading on 11 July.

Following admission, Pantheon's total voting rights would be 1,238,794,546 shares.

At 1219 BST, shares in Pantheon Resources were up 1.4% at 21.95p.

Reporting by Josh White for Sharecast.com.