Pantheon Resources: Unveiling the Potential of Ahpun Field

Pantheon Resources PLC (PANR) has recently announced preliminary log, core, and cuttings analysis from the Megrez-1 well, revealing significant potential in the Ahpun field on Alaska's North Slope. The company's shares have surged following this news, reflecting investors' enthusiasm for the project's prospects. This article explores the implications of these findings and their impact on Pantheon Resources' development strategy.

The Megrez-1 well has intersected a larger hydrocarbon liquid column than originally identified, with a total vertical thickness (TVT) of 2,310 feet. This increase in the total hydrocarbon column suggests that the Ahpun field may contain a larger pool of hydrocarbons than previously expected, potentially leading to a substantial upgrade in resource estimates. The preliminary volumetrics based on the increased net pay thickness of 670 feet TVT for the Upper Schrader Bluff and Prince Creek formations indicate a potential 15% to 50% increase in resource estimates compared to the pre-drill estimates of 609 mmbbls.

The discovery of three additional potential oil-bearing zones in the Lower Sagavanirktok Formation above the Prince Creek Formation adds further upside potential to the Ahpun field. These zones, if confirmed by further logs and analysis, could require three additional flow tests before the well is suspended as a potential future producer/injector. All potential reservoirs are interpreted to contain oil with associated natural gas, which could further enhance the commercial potential of the Ahpun field.

Pantheon Resources plans to conduct initial four flow tests, each lasting 10 days, beginning in Q1 2025. These tests are expected to contribute to reclassifying resources to contingent resources (2C) upon successful completion. The company will require extensive further work to map the extent of these zones and assess the best flow testing strategy.

The Ahpun field's proximity to the Dalton Highway and Trans Alaska Pipeline System (TAPS) enhances its commercial potential and offers a major competitive advantage over other companies' operations on the ANS. Pantheon Resources will focus on developing the resources with the lowest development cost and closest to commercial production, allowing it to finance its business more conservatively and minimize expected value dilution over the period up to cashflow breakeven point.

In conclusion, the preliminary log, core, and cuttings analysis from the Megrez-1 well has the potential to significantly impact the overall resource potential of the Ahpun field and strengthen Pantheon Resources' development strategy. The company may now be able to focus on developing the resources with the lowest development cost and closest to commercial production, allowing it to finance its business more conservatively and minimize expected value dilution. Investors should closely monitor Pantheon Resources' progress as the company continues to appraise and develop its high-impact oil projects on the Alaskan North Slope.