Pantheon Resources has restarted production at the Alkaid #2 well after cleaning out the sand plug in the last 1,000 feet of the well. The company noted that the IP30 production rate is currently calculated at 505 barrels per day of liquid hydrocarbons.
The amount of liquid and gas production flowing without artificial lift from Alkaid #2 demonstrates the good deliverability of the reservoir, which is a significant de-risking event for the development of Alkaid, Pantheon said in its statement .
“We are pleased that production testing at Alkaid #2 has commenced and demonstrated the productive capacity of the reservoir. Given the high GOR observed, we will locate and design future wells with longer laterals to minimize gas and improve liquid hydrocarbon production .The first well of any new type of game is a learning exercise,” said Jay Cheatham, CEO.
After cleanup, flows were initially slightly higher than before cleanup, suggesting that despite the sand plug, the last 1,000 feet were connected and already contributing to the main bore through the fractures that they communicated with each other, according to Pantheon’s statement. Alkaid #2 also penetrated the platform’s lower margin deltaic reservoir, which Pantheon management estimates contains more than 400 million barrels of recoverable oil resource. Adding these resources to any potential Alkaid development will significantly increase economic returns, according to Pantheon, which said the data collected indicates that the SMD has significantly better reservoir qualities than the Alkaid anomaly.
Pantheon recalls that the Alkaid #2 well is believed to have ruptured a gas cap, resulting in a much higher gas oil ration (GOR) than the Alkaid #1 well. The company has decided to drill future wells deeper to avoid the gas cap and produce an improved GOR.
Both Alkaid #1 and #2 have confirmed the presence of a material hydrocarbon system with very good reservoir deliverability, which the company strongly believes supports the case for commercial development, the statement said.
The Company has also engaged Netherland Sewell & Associates to perform an independent expert report (Competent Persons Report) on the Company’s Theta West and Alkaid projects. In addition, SLB is updating the dynamic deposit models of Pantheon’s portfolio. These reports will run parallel to the farmout process and provide investors and financiers with an independent assessment of resources.
“It’s worth remembering that Alkaid is the smallest project in Pantheon’s portfolio representing less than 4 percent of Pantheon’s estimated discovered resources. Its location on the Dalton Highway, along with the test at Alkaid #1, made it an ideal candidate for testing and production. Pantheon will now increase its focus on the largest oil projects in Pantheon’s portfolio as it begins a farm process for future activities. The large oil accumulation of Theta West with resources of over 17 billion barrels of oil in place is Pantheon’s major asset. A large portion of Theta West’s oil accumulation is in a lower reservoir than anything else in our portfolio and is analogous to giant oil fields in other parts of the world,” Cheatham said.
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