AIM-listed Pantheon Resources, owner of 100% working interest in the Kodiak and Ahpun oil fields, containing independently evaluated recoverable contingent resources of c. 1.6 billion barrels of ANS crude and 6.7 trillion cubic feet of natural gas in close proximity to pipeline and transportation infrastructure on Alaska's North Slope, has executed a rig contract to secure the use of the Nabors 105AC rig to drill the Megrez-1 well in Q4 2024.
Pantheon also announces that the leases which it successfully bid for in December 2023 have been awarded and are expected to be issued within the coming weeks.
Execution of Drill Rig Contract
Pantheon has formally contracted to use the Nabors 105AC drill rig, a rig the Company is familiar with having used it in previous drilling campaigns, to drill the Megrez-1 exploration well which will target the Ahpun East topset play. Siteworks for construction of a gravel pad along the west side of the Dalton Highway are expected to commence in September and upon completion of these siteworks the drill rig will be mobilised.
The Megrez-1 well is estimated to have a 69% geological chance of success and will target the topset sands in Ahpun East project area which the Company estimates to contain a 2U Prospective Resources of 609 million barrels of marketable liquids and 3.3 Tcf of natural gas. The Ahpun East topsets are significantly shallower than the Ahpun western topsets drilled previously.
Formal Award of Leases
The Company has also paid the remaining portion of the fees for the 46 new oil and gas leases acquired in the State of Alaska's 2023W Areawide oil and gas lease sale held in December 2023 as announced on 14 December 2023. Based on the official title work done by the State prior to awarding the leases, the 46 new leases consist of an aggregate of 65,691.5 acres, 30 of which are located on the western boundary of the Kodiak Field and 16 of which cover the Ahpun East topset play. The State of Alaska will execute and issue the leases in the next few weeks.
Jay Cheatham, Pantheon's Chief Executive, commented: 'With a management best estimate for the eastern topsets in Ahpun at over 1 billion barrels of oil equivalent 2U Prospective Resource to be tested by the Megrez-1 well, located immediately adjacent to pipeline and road infrastructure and in reservoirs expected to be orders of magnitudes better than western topsets, we believe this to be one of the most impactful onshore exploration well being drilled anywhere in the world during 2024. Success here would further advance our Ahpun development models and plans.'
Source: Pantheon Energy
