LONDON (ShareCast) - (Sharecast News) - Pantheon Resources announced the suspension of its Megrez-1 well on Alaska's North Slope on Wednesday, after flow testing produced more than 2,000 barrels of liquid per day but no significant oil or gas.
The AIM-traded firm said the well, which targeted the Lower Sagavanirktok 3 formation, was perforated at two depths and lifted using nitrogen before being shut in on 20 May for indefinite suspension pending further evaluation.

It emphasised that the results from Megrez-1 had no impact on its core Kodiak and Ahpun projects, which together hold independently certified resources of 1.57 billion barrels of marketable liquids and 6.6 trillion cubic feet of gas.

Pantheon said it remained focused on advancing development of the Ahpun field and is continuing regulatory and facilities planning as it targeted long-term cash flow self-sufficiency and valuation uplift by 2028.

Preparations were also under way for the Dubhe-1 well, a commercial demonstration planned for summer 2025 in support of Alaska LNG Phase 1.

Pantheon reiterated its strategic goal of developing its resource base while limiting equity dilution for shareholders.

"The production testing of Megrez-1 is now complete," said chief executive officer Max Easley.

"It is disappointing that no mobile oil was discovered in the tested intervals despite observed reservoir properties prior to testing.

"The company will now fully focus on the development of the established Ahpun and Kodiak discovered resources, where we already have independently certified contingent resources of 1.57 billion barrels of marketable liquids, 6.6 trillion cubic feet of natural gas, and to achieve positive cash flow generation."

At 1417 BST, shares in Pantheon Resources were down 20.3% at 21.2p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE