Pantheon Resources, an oil and gas company developing the Kodiak and Ahpun oil fields in close proximity to pipeline and transportation infrastructure on Alaska's North Slope, has announced the spudding of the Megrez-1 well to explore the eastern topsets in the Ahpun field, immediately adjacent to pipeline and road infrastructure.
The reservoir sections to be targeted are both younger and shallower than in any of Pantheon's previous Alaskan wells, with superior reservoir characteristics predicted. The Megrez-1 well will target three topset horizons, which the Company estimates to contain an aggregate 2U Prospective Resource of 609 million barrels of ANS Crude (oil, condensate & NGLs) and 3.3 trillion cubic feet ('Tcf') of natural gas. Initial results from the well will be announced when drilling operations are complete.
Pantheon contracted the Nabors 105AC rig, which the Company is familiar with having used it in previous drilling campaigns, to drill the Megrez-1 well. Construction of the gravel pad next to the Dalton Highway was completed in October, and the pad can be used year-round to support future drilling and development activities.
President-elect Trump address to Alaska
Pantheon was greatly encouraged by the supportive words made by the President-elect and the Governor of Alaska last week with respect to their intentions for progressing the proposed Alaska natural gas pipeline (Phase 1 of the Alaska LNG project). A copy of Mr Trump's speech can be found at: https://www.facebook.com/GovDunleavy/videos/president-trump-addresses-alaska/514641971572044/
David Hobbs, Executive Chairman of Pantheon Resources, said: 'A success at Megrez-1 will expand the understanding of Ahpun oil and gas accumulations and dramatically impact the economics of the Ahpun full field development. There are few, if any, onshore wells targeting what we estimate to be more than 1 billion boe (barrels of oil equivalent) of 2U Prospective Resource anywhere in the world during this year. We believe the target reservoir sections should exhibit at least an order of magnitude better permeability than Ahpun's western topsets which were logged and cored in the Pipeline State-1 well on Pantheon's acreage. In a success case, the 609 million barrels of ANS crude immediately adjacent to the Trans-Alaska Pipeline would yield a very high NPV/barrel and the 3.3 Tcf would significantly enhance Pantheon's gas resource base into its proposed gas project with Alaska Gasline Development Corporation.
'While the outcome of the Megrez-1 well will not impact our already certified 1.6 billion barrels of contingent resources, success here would be material to our Ahpun development plans for both ANS crude and gas. I look forward to reporting on progress once drilling is complete.'
Source: Pantheon Resources
