LONDON (ShareCast) - (Sharecast News) - Pantheon Resources reported a successful outcome at its Dubhe-1 appraisal well on Alaska's North Slope on Monday, with the horizontal lateral exceeding pre-drill expectations and underpinning a sharp increase in estimated resources at its Ahpun area.
The AIM-traded company said the lateral was drilled to a total measured depth of 15,800 feet, with about 5,200 feet located entirely within the target SMD-B reservoir.

That compared with pre-drill plans for 3,000 to 4,000 feet, with logging confirming the reservoir quality remained consistent with pilot hole results.

Agreements were in place with key suppliers for hydraulic stimulation ahead of flow tests, which will provide detailed production data to support development planning.

Pantheon updated its best estimate of marketable liquids resources in Ahpun to 589 million barrels, an increase of 228 million barrels, or 63%, from previously certified estimates.

The revision incorporated Dubhe-1 results and new infill opportunities in the Topset SMD-B horizon, and updated assessments of the SMD-C zone and the Slope Fan System.

Preparations were under way to begin hydraulic stimulation and flow testing, with Pantheon highlighting it had secured service agreements with new suppliers bringing expertise from mature unconventional basins such as the Permian.

The company cautioned that while results so far were "extremely encouraging," the outcome of flow testing would determine the commercial viability of the project.

"We are delighted to announce the Dubhe-1 horizontal lateral as a success, landing the well in the target reservoir and exceeding our expectations for the length," said Erich Krumanocker, chief development officer.

"We are looking forward to progressing with the completion and subsequent flow testing of this well."

At 1043 BST, shares in Pantheon Resources were up 13.19% at 32.71p.

Reporting by Josh White for Sharecast.com.

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