Pantheon Resources plc (LON:PANR, OTCQX: PTHRF), the oil and gas company developing the Kodiak and Ahpun oil fields immediately adjacent to pipeline and transportation infrastructure on Alaska’s North Slope, has provided an operational and cost update on the Dubhe-1 well.
Operational Update
Well clean-up operations at Dubhe-1 are progressing with production dominated by previously injected stimulation fluids. Intermittent oil production from Dubhe-1 commenced on 3rd November, and consistent small oil volumes commenced from around 19th November. Gas production volumes increased throughout this period. Thus far, approximately 40% of the injected water volume has been produced with steady gas production along with the modest production of light oil. The Company’s closest analog to this well is the SMD-B interval in Alkaid-2 which was flow tested in 2023 and first measured oil production when a water volume equivalent to approximately 50% of the injected water volume had been produced. The Company plans to continue the well clean-up until a representative oil flow rate can be determined. Given that Dubhe-1 has multiple fracked stages, the clean-up profile may differ from the previous single zone completion as each stage may clean up at different points in time.
In May 2025, the Company expected that the cost for Dubhe-1 would be consistent with historical costs of approximately c.$10 million for drilling the well with a +/-5000 ft lateral/horizontal and approximately $15 million for the well completion. During final well planning and data gathering decisions, the Company chose to drill a pilot hole to allow core samples to be collected, to better refine the target landing zone and to penetrate the deeper Slope Fan System (SFS) as well as the shallower SMD-C reservoir target. The final cost for drilling and completing was approximately $33 million, including the pilot hole to enable evaluation of shallower and deeper horizons and acquisition of whole and sidewall cores.
Overall, this cost outcome, inclusive of full appraisal scope, contingency measures (e.g. standby drilling rig and coil tubing unit based on the experience at Alkaid-2), and inflationary pressures, does not detract from a solid operating performance. In addition, the construction of the new Dubhe pad, which will also be available for the drilling of future wells, cost $2.5 million. Clean-up, flow-back and well testing operational costs will be determined at the end of the programme.
Max Easley, Pantheon Resources Chief Executive Officer, commented: “I continue to be pleased with the ongoing safe and efficient execution of our operations to date and look forward to sharing more about Dubhe-1 results when we have them.”
