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Dividend history 2022 :
25/05/2022 Special Cash Dividend 19.54p
30/03/2022 Final Dividend 9.57p
30/03/2022 Interim Dividend 23.78p
24/01/2022 Interim Dividend 17.20p
https://oilnow.gy/featured/100m-barrel-jethro-well-could-be-guyanas-first-oil-production-project-outside-stabroek-block/
100M-barrel Jethro well could be Guyana’s first oil production project outside Stabroek Block
By OilNOW
August 2, 2022
The fallout from Russia’s invasion of Ukraine has resulted in a spike in oil prices. Now, the Orinduik Block partners – Eco Atlantic, Tullow Oil, TotalEnergies and Qatar Energy – plan to revisit the commercialisation potential of the Jethro discovery.
Two tertiary discoveries were made at the Orinduik Block in 2019 at the Jethro and Joe wells, both heavy oil finds. Jethro, in particular, had encountered 55 metres of net oil pay. Tullow’s Chief Executive, Paul McDade had told S&P Global Platts that the Joint Venture (JV) is “confident of the commercial value” of the project, even as a standalone development, but a development decision did not come to fruition. The consortium had decided to move on with plans to target lighter crude in the future.
This is not the first time the Orinduik partners decided to revisit the potential commerciality of the Jethro discovery. But now that the price of crude is high, the Jethro well is much more valuable. However, partners will have to contend with the fact that government intends to renegotiate fiscal terms for any find outside of the Stabroek Block that contractors intend to produce.
If the partners do decide to tap this well, it could be the first Guyana development outside of the prolific Stabroek Block. Another contender could have been CGX Energy with the Kawa-1 discovery, but the company dubbed it a “finder well” and is moving on to another prospect at Wei-1.
Orinduik Block operator, Tullow Oil, is also preparing to submit drilling commitments to the Government of Guyana for the Orinduik Block.
“Eco and its JV partners are committed to further drilling on the Orinduik Block and, with its JV partners, are assessing all opportunities available to drill at least two exploration wells into the light oil cretaceous targets as soon as practical,” Eco said. “The company is fully aligned with its JV partners on careful target selection based on the reprocessed 3D and the block and nearby oil discoveries for the next drilling campaign and Eco expects to be able to update the market on further drilling plans in due course,” the company said on Monday.
A recently updated report showed that the best gross prospective resource estimate for the Orinduik Block is 8.1 billion barrels of oil equivalent, with 681 million barrels of oil owed to Eco Atlantic and 544 billion cubic feet of gas.
The Orinduik Block lies 170 kilometers (km) offshore and covers 1,800 square kilometers (km²). Tullow has 60% operating interest while Eco-Atlantic has 15% working interest and the TotalEnergies/Qatar Energy JV has 25%.
Lets have a Serenity recap.
As we stand now.........Serenity is commercial with expected recoverable oil of between 8.5 to 20 million barrels. HOWEVER appraisal drilling might push this up to 100 million recoverable barrels or more. Serenity appraisal well next month is the start of this process of firming up much more recoverable oil..........
EOG have farmed into only Serenity........not into the Minos High or Liberator. After the farm out to EOG, i3 retains a 75% WI in Block 13/23c North (Licence P2358) which has Serenity and a 100% WI in Block 13/23c South (Licence P2358), which contains the Minos High Prospect and Liberator discovery.
......."i3 is delighted to announce this potential farm-out which on completion will facilitate the drilling of an appraisal well on the Serenity oil field later this year,” said Majid Shafiq, i3 chief executive.
“This well will provide critical information which will help us to delineate the size of this potentially very large discovery and move it towards development.”........
Serenity migration video :
https://wp-i3energy-2021.s3.eu-west-2.amazonaws.com/media/2021/12/i3-Serenity-Migration.mp4
Serenity
The Serenity field was discovered by well 13/23c-10, drilled by i3 (100% WI) in late 2019. The well encountered a 20ft thick oil-bearing sand (11ft true vertical thickeness, TVT) unit at the top of the Lower Cretaceous Captain sequence. The reservoir quality was high, with porosities averaging 24.5% and oil samples, recovered by wireline, having an API of 31.5°, suggesting that they are very similar to the oil in the neighbouring Tain and Blake fields. The Serenity reservoir is a pinch-out of the Captain sands against the southern margin of the Halibut Horst, analogous to the Tain and Blake Flank. The sand has 11ft TVT at the 13/23c-10 well and thickens toward the west reaching 115ft TVT in the 13/23a-7z well immediately adjacent to Serenity’s western closure.
The maximum expected oil column in the Serenity field is 1124ft true vertical depth (TVD), from the highest known oil in Tain to the Blake-Liberator-Serenity common oil water contact (OWC). This matches i3’s pre-drill predictions and is supported by well 13/23c-10 pressure measurements.
The Blake, Tain and Serenity fields share a common reservoir and OWC. Their depositional history and reservoir charge have been modelled by i3. The model has been confirmed by the pressure and fluid composition data from the Serenity well.
Hence the re-development of the Blake field, development of the Tain field and appraisal / development of Serenity share common attributes and may be linked, depending on optimal use of infrastructure and commercial agreement between the parties.
The reserves already discovered at Serenity represent the opportunity for a commercially attractive tie-back to the planned development at Tain (operated by RSRUK and subject to development approval) with recoveries of approximately 8.5 to 20 MMbbls. If further appraisal confirms the sand deposition and connectivity model, then oil in place would be circa 197MMbbls and a stand alone full field development would generate recoveries of 100 MMbbls or more. With successful additional appraisal, alternate development options for Serenity could include re-deployment of an existing North Sea FPSO or tie-back to alternate existing infrastructure. Planning and permitting for the well is ongoing with the well Operator appointed.
Link below to the MDA for the latest results.
https://docs.publicnow.com/viewDoc?hash_primary=891753D000B1EDA379DB4D4C18BF55B8312CFDAF
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https://www.thetimes.co.uk/article/north-sea-oil-duo-move-serenely-onwards-with-partnership-deal-qxdz0973g
North Sea oil duo move serenely onwards with partnership deal
Drilling on a North Sea oil and gas project is set to start shortly after a partnership deal was completed.
Europa Oil & Gas is taking a 25 per cent share of the Serenity prospect from i3 Energy. In return, Europa is paying for 46.25 per cent of the cost of the appraisal well, assuming that the cost does not top £15 million. Anything beyond that would be shared, based on the respective stakes held by the companies.
The drilling on Serenity is scheduled to begin next month and should give a greater understanding of the resources available in the area. Oil was discovered there in 2019 and it was estimated that up to 197 million barrels could be in place.
It is thought that.......................
https://www.offshore-mag.com/drilling-completion/article/14280563/exxon-mobil-planning-drilling-spree-on-canje-block-offshore-guyana
Exxon Mobil planning drilling spree on Canje Block offshore Guyana
Aug. 1, 2022
Exxon Mobil has applied for an environmental permit to drill up to 12 further exploration wells on the Canje Block off Guyana during 2023-2024, according to Eco (Atlantic) Oil and Gas.
Offshore staff
TORONTO, Canada — Exxon Mobil has applied for an environmental permit to drill up to 12 further exploration wells on the Canje Block offshore Guyana during 2023-2024, according to Eco (Atlantic) Oil and Gas.
Eco has an indirect share of the block via its 7.3% interest in one of the partners, JHI Associates.
Earlier this year, Exxon Mobil plugged and abandoned the Jabillo-1 well on the block as a dry hole.
Elsewhere, the semisubmersible Island Innovator should mobilize early next week to drill the Gazania-1 well in Block 2B offshore South Africa at a location 25 km offshore in 150 m water dept.
The well, likely to spud in September, will be drilled to a depth of about 2,800 m to target a stacked pay section updip of the AJ-1 discovery and in the proven oil horizon. Eco plans to seal and plug the well after the test with no remaining equipment left on the sea floor.
In Block 3B/4B, 120 km to 250 km offshore in South Africa’s Orange Basin, and south of this year’s Graff-1 and Venus-1 oil discoveries, reprocessing is nearing completion of a 3D seismic survey. The results will be used to high-grade leads toward identifying drilling targets and preparing for potential drilling next year, Eco said.
Eco Atlantic Oil & Gas says portfolio has several "company maker" wells
Solid day and good volume in the UK. Q2 results will be out soon.
https://www.malcysblog.com/2022/08/oil-price-scirocco-eco-atlantic-sdx-longboat-prospex-gulfsands-and-finally/
..........This is a detailed and highly positive report from Eco Atlantic who have had a very busy time in the period but are also scheduled to be even more busy in the next few months. The Azinan acquisition has opened up the imminent drilling of the Gazania well on Block 2/B offshore South Africa whilst adding to the stake at Block 3B/4B in the Orange Basin looks very exciting to me.
Following quitting the JHI deal after unsatisfactory lock-up provisions were proposed, Eco still have two potential prospects in Guyana where Exxon announced further discoveries last week but Africa seems to be the area of most focus in the south as well as in Namibia.
Eco is another stock where the upside potential dwarfs the current share price, not least near Venus and Graff where I have already talked about further wells from Total and Shell are tight but would propel the post codes into a different stratosphere should the be more big discoveries. A must have for the beta end of the portfolio and the good news is that the action is not very far away...............
Will have to keep an eye out in case Gil does an interview.
https://ca.investing.com/news/stock-market-news/eco-atlantic-oil--gas-holzman-very-positive-about-future-2732402
Eco Atlantic Oil & Gas’ Holzman 'very positive' about future
Stock Markets 4 hours ago (Aug 01, 2022 04:45)
Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG) chief executive Gil Holzman told investors the company remains “very positive about what the future holds” as the explorer released its financial results statement for the 12 months ended 31 March 2022.
It comes as the company has broadened and diversified its portfolio, picking up assets offshore South Africa whilst its acreage offshore Guyana benefits from the advancement of third-party owned and operated projects nearby.
"The past 12 months have seen us make considerable progress as a business, increasing our geographic footprint and overall acreage considerably, growing the company in some of the most active and exciting oil and gas exploration regions on the globe,” Holzman said.
“This, combined with the improved commodity price conditions, means that interest in exploration activity in the areas where Eco has strategically important acreage has increased significantly.”
Holzman added: "Our acquisition of Azinam has paved the way for our exciting near-term drilling campaign at Block 2B, offshore South Africa.
“The Gazania-1 well, in which we hold a 50% WI, is targeting a 300 million barrel light oil resource, which, if successful, would be transformational for Eco and the partners on the Block. We remain on track to spud the well in September with the rig mobilising from Norway in the next two weeks and we will provide updates as appropriate.”
Eco highlighted that it is now focussing exclusively on high impact oil and gas exploration projects, and specifically on progressing its near-term drilling opportunities offshore South Africa, Namibia and Guyana.
"Given the significant corporate activity over the last 12-18 months, as a company we remain very positive about what the future holds and our ability to generate returns for all our stakeholders,” the Eco chief executive said.
“The company possesses highly strategic acreage in exploration hot spots, a robust balance sheet with over US$37m in cash, an entrepreneurial and ambitious management team, and the potential for considerable operational catalysts that can create material and sustainable value for shareholders.
“As ever, we are excited about what the coming months will bring and look forward to updating the market on our progress over the coming months."
News release today.
https://www.investegate.co.uk/eco--atlantic--o--38-g--eco-/rns/full-year-results-and-operational-update/202208010700113603U/
Looking forward to Gazania-1 well spud in September :)
Should be Q2 results soon, and they should be excellent. Maybe this week or next for release.
Cash flow should be superb, and then we are only a few weeks away from Serenity well spud.
Hoping the results might also see a special dividend to go with the monthly dividend we get........fingers crossed.
News today :
https://www.investegate.co.uk/i3-energy-plc--i3e-/rns/completion-of-serenity-farmout/202208010755254035U/
i3 Energy plc
("i3" or the "Company")
Completion of Serenity Farmout
i3 Energy plc (AIM:I3E) (TSX:ITE), an independent oil and gas company with assets and operations in the UK and Canada, is pleased to announce, following the fulfilment of all conditions precedent in the Farm-in Agreement ("FIA"), the completion of the farmout of a 25% working interest ("WI") in Block 13/23c North (Licence P2358) which contains the Serenity discovery, to Europa Oil and Gas Limited ("Europa"). Under the terms of the FIA, Europa will fund 46.25% of the cost of the upcoming Serenity appraisal well up to a gross capped well cost of £15 million. Any well costs exceeding £15 million will be funded by the companies in proportion to their respective working interests.
Following this farm-out, i3 retains a 75% WI in Block 13/23c North (Licence P2358) and a 100% WI in Block 13/23c South (Licence P2358), which contains the Minos High Prospect and Liberator discovery.
Majid Shafiq, CEO of i3 Energy plc, commented:
"We are delighted to have successfully completed the farm-out agreement for Serenity and to welcome Europa as our joint venture partner in the discovery. The next significant step is to drill the appraisal well, which is on track for spud in September. The well will help us delineate the size of the field and provide the critical information required to formulate an effective development plan for a potentially very large oil field. We look forward to updating the market on our progress at what is an exciting time for i3's North Sea acreage."
Looking forward to a good week, and good share price rise.
UK ADVFN chat board for PANR (PTHRF)
https://uk.advfn.com/cmn/fbb/thread.php3?id=50280827
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With reference to the Clearwater play.........very much i3E and I have brought this to the attention of the author that I3E (London) / ITE (Canada) is very much involved with the Clearwater play.
https://seekingalpha.com/article/4527383-shale-oil-play-definitely-want-miss-out-no-not-permian
The Unconventional Oil Play You Definitely Don't Want To Miss Out: No, It Is Not Permian
J...
i3 pays a monthly dividend which is currently 0.1425 pence per share.
Next monthly dividend :
Dividend: 0.1425 pence/share
Ex-Dividend Date: 14 Jul 2022
Record Date: 15 Jul 2022
Payment date: 5 Aug 2022
Partner websites for i3E
https://cardinalenergy.ca are operating the Wapiti wells.
https://rubelliteenergy.com are operating the Clearwater wells.
https://www.broadviewenergy.ca is not a partner but might be at some point.
At 95$ a barrel minimum size for a commercial discovery at Gazania-1 would be just 30 million barrels recoverable.
If we go to best case discovery of say 300 million barrels recoverable then at 95$ a barrel the NPV is around 3.2 Billion dollars of which 50% is ECO.
Even at a conservative oil price estimate of $65/bbl a discovery in the region of 300 MMbbls is expected to have an NPV of 1.6 billion.
Its easy to see why Gil refers to Gazania-1 as a potential "ten bagger" for ECO if it comes in good in this recent interview ( https://www.alignresearch.co.uk/eco-atlantic-oil-gas/dr-michael-green-interviews-gil-holzman-ceo-of-eco-atlantic-oil-gas/ )
Cape Town's Astron refinery is due to restart in Q4 2022, and this would be where any produced oil would be sent - so all is perfect timing for a discovery then quick development.
Gazania-1 well appears to consist of 2 seperate targets :
Lower Gazania target - estimated around 122 million barrels recoverable.
Upper Namaqualand target - estimated around 228 million barrels recoverable.
Total being potential 350 million recoverable and either would be commercial in the absence of the other.
Realisiticaly here you would want around 70 million barrels to be assured it would be commercially developed, so if the lower target comes in and the upper not, still commercial.
With ECO having a current market cap below 100 million US$, there really is one massive potential upside ahead, just for Gazania-1. And then on top of that you have Guyana and Namibia, with Guyana drilling expected to be H1 2023 (news on targets soon) and potentially deals to be done in the Orange Basin......with ECO potentially getting a free carry from a Major for 2 exploration wells to be drilled in 2023 in a farm out deal is a rumour that floated around.
All imo, DYOR !
Video interview PANR today :
Video interview PANR today :
PANR BOOM.......its early.
ITS GOOD.......DAMN GOOD
https://www.londonstockexchange.com/news-article/PANR/operational-update-alkaid-2-well/15561819
29 July 2022
Pantheon Resources plc
Operational Update, Alkaid #2 Well
Pantheon Resources plc ("Pantheon" or the "Company"), the AIM listed oil and gas company with a 100% working interest in all of its oil projects spanning c. 153,000 acres adjacent and near to transportation and pipeline infrastructure on the Alaska North Slope ("ANS"), is pleased to provide an update on the Alkaid #2 well.
Alkaid #2 Well - Target Vertical Depth Reached
· The Alkaid #2 pilot hole has now reached a total vertical depth of 8,584 feet ('ft'), with a measured depth of 8,950 ft, having encountered multiple oil bearing reservoirs in all three targeted formations in the well: (i) the Shelf Margin Deltaic, (ii) the Alkaid Anomaly, and (iii) the deeper, untested extension of the Alkaid Anomaly ("Alkaid Deep").
· Initial analysis indicates significant improvements in reservoir quality which could potentially lead to a material upgrade of the current resource for all targeted horizons.
· Analysis of data received to date confirms the Company's ability to accurately predict the presence of light oil bearing reservoirs using 3D seismic data, geological and geophysical capabilities, further enhancing confidence in development planning and expected outcomes.
· All reservoirs were encountered on prognosis at predicted depths with reservoir quality exceeding pre-drill expectations.
· Alkaid #2 confirms more than 1,400 ft of gross continuous oil bearing strata throughout the section drilled below the regional top seal at 7,165 ft down to at least the 8,584 ft total vertical depth. Under instruction from the Alaska Oil and Gas Conservation Commission (AOGCC), drilling was stopped at 8,584 ft, despite not having reached the bottom of the Alkaid Deep section, to allow a sufficient margin to avoid contact with the high pressure HRZ zone and possible fault.
BOOM.......its early.
ITS GOOD.......DAMN GOOD
https://www.londonstockexchange.com/news-article/PANR/operational-update-alkaid-2-well/15561819
29 July 2022
Pantheon Resources plc
Operational Update, Alkaid #2 Well
Pantheon Resources plc ("Pantheon" or the "Company"), the AIM listed oil and gas company with a 100% working interest in all of its oil projects spanning c. 153,000 acres adjacent and near to transportation and pipeline infrastructure on the Alaska North Slope ("ANS"), is pleased to provide an update on the Alkaid #2 well.
Alkaid #2 Well - Target Vertical Depth Reached
· The Alkaid #2 pilot hole has now reached a total vertical depth of 8,584 feet ('ft'), with a measured depth of 8,950 ft, having encountered multiple oil bearing reservoirs in all three targeted formations in the well: (i) the Shelf Margin Deltaic, (ii) the Alkaid Anomaly, and (iii) the deeper, untested extension of the Alkaid Anomaly ("Alkaid Deep").
· Initial analysis indicates significant improvements in reservoir quality which could potentially lead to a material upgrade of the current resource for all targeted horizons.
· Analysis of data received to date confirms the Company's ability to accurately predict the presence of light oil bearing reservoirs using 3D seismic data, geological and geophysical capabilities, further enhancing confidence in development planning and expected outcomes.
· All reservoirs were encountered on prognosis at predicted depths with reservoir quality exceeding pre-drill expectations.
· Alkaid #2 confirms more than 1,400 ft of gross continuous oil bearing strata throughout the section drilled below the regional top seal at 7,165 ft down to at least the 8,584 ft total vertical depth. Under instruction from the Alaska Oil and Gas Conservation Commission (AOGCC), drilling was stopped at 8,584 ft, despite not having reached the bottom of the Alkaid Deep section, to allow a sufficient margin to avoid contact with the high pressure HRZ zone and possible fault.
https://total-market-solutions.com/2022/07/eco-atlantic-oil-and-gas-ltd/
Date 28.07.22
Time for Eco Atlantic to ignite?
“…Prospective investors in ECO, then, have quite a bit to consider. Right now though, at around 25p, Eco looks quite cheap. With several campaigns underway in highly prospective fields, Eco Atlantic may be a tinderbox waiting to spark…”
Eco (Atlantic) Oil & Gas (AIM:ECO), an oil and gas exploration company focused on Atlantic margin basins offshore Guyana, Namibia, and South Afric.......
https://www.alignresearch.co.uk/eco-atlantic-oil-gas/eco-atlantic-oil-gas-tremendous-read-across-for-eco-from-offshore-guyana-discoveries/
..........There is no doubt that Eco is exploring for oil and gas in some global hotspots of todays’ hydrocarbon world – offshore Namibia and offshore South Africa, along with offshore Guyana. In January 2022 we updated our research coverage on Eco with a Conviction Buy stance and a target price of 114.65p, when the stock was trading at 23.75p. To put it mildly, there looks as though there is potentially a lot of excitement to be generated in this stock over the coming months and we are more than happy to conform our stance at the current price of 26.70p..........
Interesting article. I am hoping ECO will soon pull off a deal where they get free carried for 2 exploration wells Namibia/South Africa.
https://www.reuters.com/business/energy/ukraine-war-rekindles-europes-demand-african-oil-gas-2022-07-22/
Analysis: Ukraine war rekindles Europe's demand for African oil and gas
July 22, 20224:09 PM GMT+7
Potential for African projects costing up to $100 bln
Namibia oil discoveries could generate 500,000 bpd
Oil majors' steps dovetail with push by European governments
Africa sees golden chance to tap assets amid energy transition
BRUSSELS/LONDON/CAPE TOWN, July 22 (Reuters) - Europe's thirst for oil and gas to replace sanctioned Russian supply is reviving interest in African energy projects that were shunned due to costs and climate change concerns, industry executives and African officials said.
Energy firms are considering projects worth a total of $100 billion on the continent, according to Reuters calculations based on public and private company estimates.
African countries that currently have little or no oil and gas output could see billions in energy investments in the coming years, including Namibia, South Africa, Uganda, Kenya, Mozambique and Tanz..............................
New video update :
Pantheon Resources @PantheonResour1
New Video now live: Alkaid #2 Operations Update - Mid-July
If you like the sound of drilling:
https://mobile.twitter.com/PantheonResour1/status/1550059228009840640/video/1
https://www.share-talk.com/new-alaska-oil-well-boosts-interest-in-pantheon-resources-alkaid-2-well-2/
New Alaska oil well boosts interest in Pantheon Resources Alkaid-2 well
Abm July 13, 2022
This potentially crucial well will stamp American soil as a major multi-billion dollar oil asset.
The Alkaid #2 well is located adjacent to the Dalton Highway and Trans Alaska Pipeline System (TAPS) which are the main transportation highway and export pipelines, respectively, and approximately 4.5 miles from the Alkaid #1 discovery well drilled in 2015.
A key objective of this well is to gain robust production test data to accurately assess the ultimate potential of the reservoir. Whilst the Company believes the optimum well design to exploit the Alkaid anomaly would include +8,000 foot lateral sections, in this first well the Company will adopt a more conservative approach with a shorter lateral simply to minimise operational risk.
The Alkaid #2 well will assess three impactful objectives over multiple formations:
(i) Production testing of a proven oil formation encountered in Alkaid #1
(ii) Exploring the deeper potential for oil in that zone
(iii) Appraising an extension of oil discovered in the Shelf Margin Deltaic at Alkaid #1 and Talitha #1.
Pantheon’s success with several wells in the past has led to a substantial valuation. It peaked at £1bn right before equities fell into a bearish market. Today’s price at 93.75p puts the market cap at almost £700mln.
Pantheon’s share prices performance over the past year is a reminder of the high-stakes nature of Alkaid well.
It is huge
The investment proposal can be boiled down to its essence and it will make the opportunity seem quite straightforward – “there’s probably a lot of oil” or at least that’s what the theory says.
Both company and internal exploration experts believe that there is a large amount of oil in the area known as Alaska’s North Slope.
Pantheon’s project area is located further onshore from previous coastal discoveries like Prudhoe Bay (estimated at having some 33bn barrels) and Kuparuk/West Sak (14.1bn barrels OIP). It is also to the east from Smith Bay, Pikka Horseshoe and Willow discoveries that measure in the hundreds to millions of barrels.
Bob Rosenthal, Pantheon’s technical director, highlighted the fact that the AIM-quoted drill-bit was turning in the Alkaid-2 oil well. He said that “a lot of oil has been discovered” in the project area.
The oil-in-place volume has been estimated at 23 billion barrels. Currently, 2.3 billion are deemed recoverable.
Alkaid-2 could result in an upgrade of those already large numbers depending on the results.
Brendan Long, WH Ireland’s oil analyst, said that successful testing of reservoirs at greater depths in this location is likely to increase the scale of the resource.
The WH Ireland analyst pitches Pantheon’s ‘fair Value’ estimate at around 208p (versus today’s price of 90p), while pointing out the other important aspect to Alkaid.
Going horizontal now
Pantheon’s Alaskan wells have been a success. They were all vertical test wells that were used to confirm the presence and collect valuable data. However, future development will include horizontal production wells.
The idea is quite simple and was the basis of much of the US onshore oil boom over the past 20 years.
Vertical pilots are used to drilling down to the reservoir’s depth (in wells such as those mentioned above, the ‘horizon’ and ‘formation’). At that point, one or more of the lateral holes is drilled across the entire oil-bearing area.
This increases the area where the wellbore is exposed and allows for higher oil production.
Theta West was the most recent vertical well and produced oil at a rate that reached 57 barrels per hour in a short period of testing. Before that, the Talitha A well tested at 32 bopd and its predecessor, Talitha, gave out 73 bopd.
Alkaid was the first vertical discovery well by Pantheon in Alaska. It was drilled in 2015, and it flowed approximately 100 barrels during testing for 2019.
Pantheon’s valuation of £700mln is unlikely to be understood by someone who doesn’t know much about the oil industry.
However, the company’s view has always been clear.
Bob Rosenthal stated in March that Pantheon was on the right track to unlocking a huge basin play.
“Pantheon has the opportunity to develop large, discrete oil accumulations in an existing oil province adjacent to export infrastructure. This is a unique opportunity.”
Jay Cheatham, Chief Executive, stated that “we have enough data to confirm what we expected and have now appraised an extensive resource which meets or exceeds our predrill estimates.”
A horizontal well such as Alkaid-2 will produce higher volume production statistics, which will undoubtedly help to strengthen the commercial case for developing oilfields across Alaska’s Pantheon acreage.
Detail of the Alkaid drill
Pantheon explained to investors that Alkaid-2 would have multiple objectives and will be used in multiple formations.
It will test oil zones previously discovered by the Alkaid-1 well. Additionally, it will drill deeper to assess an oil target that’s expected to be an extension of oil resources seen at Talitha-1.
Alkaid-2 will have a ‘conservative lateral section’, according to the company. This is significantly shorter than the 8,000 feet section that is envisaged for full development scenarios. It will also minimize operational risk.
Similar to other wells on Alaska’s North Slope (ANS), it is expected that the well will use unconventional oil production techniques, which are applied to conventional oil reservoirs in order to maximize the potential reserves and production.
Pantheon observed that such stimulation is now a standard procedure in the entire ANS.
The company could potentially make a lot of money by extending the testing that was done in a successful case.
“The Alkaid-2 well was the first to be produced in this new field of unconventional technology. Jay Cheatham, chief executive of the company, stated that, as is customary in the industry, they will apply what they learn from this well to other wells to optimize future drilling, testing, and production.
Pantheon would see a transformation in its commercial success with any single project. This is in addition to our geographical location onshore and adjacent, as well as export infrastructure in a low sovereign risk jurisdiction.
Analysts’ opinions
Brendan Long, WH Ireland analyst, recently described the previous drill campaign in a note as “unambiguously positive” and called the Lower Basin Floor Fan (seen at the ThetaWest well) a “giant Elephant”.
This is Long’s fair valuation estimate for Pantheon shares at 208p. It suggests that there’s more than 100% upside to the current market price of about 90p.
Alkaid-2 is, however, “a baby elephant”, according to Long. He wrote in cover and caveats before the next well.
The Alkaid-2 well, to our knowledge, is not a make-or-break well.
“We believe there is no chance that any Alkaid result would dampen our enthusiasm for our main prize, The Lower Basin Floor Fan, Theta West structure.
It is important to remember that Alkaid#2 can be used for early-stage appraisals. It can be brought onstream for an along-term production test and generate revenue. This is due to the extremely favourable operating environment that Pantheon Resources enjoys, including its access road and pipeline infrastructure.
“It is wrong, in our opinion, to expect the well to come on like a fully optimised developmental well: That is typically not the intention/expectation for the first-ever horizontal well completed in a large-scale resource play, based on our experience.”
The analyst stated that they are interested in understanding the reservoir’s flow behaviour over time.
“If this behaviour is encouraging, we believe that both the initial production rates as well as expected final recoveries per well may be increased over time through drilling longer wells or fracking more intensively.
“Based on market commentary and investor discussions, we caution against putting the horse before the foe due to the extraordinary ease Pantheon Resources has in monetizing oil production from its wells.
“An appraisal well, in our opinion, is an appraisal well, regardless of whether its production is monetised.”
https://www.dailymail.co.uk/money/investing/article-11002739/SMALL-CAP-IDEA-Pantheon-Resources.html
SMALL CAP IDEA: Pantheon Resources hopes new horizontal well will follow in footsteps of vertical predecessors
By Jamie Ashcroft, Proactive Investors For This Is Money
Published: 16:25, 11 July 2022 | Updated: 16:25, 11 July 2022
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Alkaid-2 Spudded.
https://www.londonstockexchange.com/news-article/PANR/spudding-of-alkaid-2-well/15529473
Pantheon Resources plc
Spudding of Alkaid #2 Well
Pantheon Resources plc ("Pantheon" or "the Company"), the AIM listed oil and gas company with a 100% working interest in all of its oil projects spanning c. 153,000 acres adjacent and near to transportation and pipeline infrastructure on the Alaska North Slope ("ANS"), is pleased to announce the following updates.
Spudding of Alkaid #2 Well
Operations have commenced on the Alkaid oil accumulation with the spudding of Alkaid #2, the Company's first horizontal well on the ANS, using the Nabors 105AC drill rig. The rig is larger than those previously used, with increased capacity, and can undertake multiple functions. As of 8 PM BST on 6 July, Pantheon was drilling ahead at a depth of approximately 300 feet.
The Alkaid #2 well will assess three impactful objectives over multiple formations:
(i) Production testing a proven oil formation encountered in Alkaid #1
(ii) Exploring the deeper potential for oil in that zone
(iii) Appraising an extension of oil discovered in the Shelf Margin Deltaic at Alkaid #1 and Talitha #1.
The Alkaid #2 well is located adjacent to the Dalton Highway and Trans Alaska Pipeline System (TAPS) which are the main transportation highway and export pipeline, respectively, and approximately 4.5 miles from the Alkaid #1 discovery well drilled in 2015. A key objective of this well is to gain robust production test data to accurately assess the ultimate potential of the reservoir. Whilst the Company believes the optimum well design to exploit the Alkaid anomaly would include +8,000 foot lateral sections, in this first well the Company will adopt a more conservative approach with a shorter lateral simply to minimise operational risk.
Alkaid Horizon Resource Summary
Oil in Place (OIP)1
900 mmbo
Recoverable Resource (10-15%)1
90-135 mmbo
Recoverable Resource (2020 IER)
76.5 mmbo
NVP (10) at $55/bbl (2020 IER)2
$595 million
1 Management estimate
2 Prevailing realized oil price of?$55/bbl held flat used in the Independent Expert Report published in January 2020. This estimate discounted certain parts of the field by 50%, and hence is considered by the Company a conservative estimate.
Long Term Production Testing
The primary function of Alkaid #2 is to conduct a long term production test on the oil zone previously tested at Alkaid #1. If successful, Pantheon will truck the produced oil to?Pump Station?#1, located approximately 20 miles north of Alkaid, and sell the produced oil to a nearby North Slope facility.
Alkaid #1 tested an average of over 100 BOPD via a small "through-tubing single frac", which perforated six feet of the 240 feet net pay interval. Alkaid #2 will test this same zone through a long horizontal section accessing several thousand feet of oil bearing section.
Deeper Exploration Potential
Alkaid #2 also has significant exploratory potential immediately below the total depth at Alkaid #1. As part of the current drilling programme, the Company intends to evaluate the extent of this deeper oil column.
Alkaid #1 was terminated within the oil zone at a time when regional flooding of the Dalton Highway occurred. Based on seismic and other analytical analysis, the Company believes the Alkaid horizon's oil zone is substantially thicker than drilled to date, offering the potential for additional resource growth to that outlined above and which will be assessed in the Alkaid #2 well. This increased resource potential combined with current oil price forecasts, as opposed to the $55/bbl used by the Independent Expert in 2020, could have a material impact on any new resource valuation.
Appraisal of Shelf Margin Deltaic ("SMD")
The recent oil discovery at Talitha #A in the Shelf Margin Deltaic formation has upgraded the potential for the SMD to produce oil at the Greater Alkaid location, as well as at the Talitha project. Pantheon estimates the SMD contains 2.6 billion barrels OIP and a Contingent Resource of 404 mmbo. In a success case, the Company believes a large portion of this resource could be developed from the Dalton Highway which would represent a considerable near term development opportunity, especially if combined with the deeper oil zone utilising the same production infrastructure.
A successful programme at Alkaid #2 would yield early cashflow which is of significant value at current oil prices. The Alkaid #2 horizontal well will be Pantheon's first long term production test well in Alaska and will utilize unconventional oil production technologies applied to conventional oil reservoirs to maximize potential reserves and production, which has now become standard operating procedure across the entire ANS. The industry has transferred these technologies from the Lower 48 states into Alaska to develop this higher quality oil in the stratigraphic Brookian sections containing billions of barrels of recently discovered oil. Additionally, the Greater Alkaid oil accumulation sits underneath and adjacent to the TAPS pipeline and the Dalton Highway which is a material advantage as it is ideal for year-round "Phased Development". This would minimize upfront capital expenditure and allow for future capital needs to be partly funded through production revenues, yielding higher Internal Rates of Return.
Jay Cheatham, CEO of Pantheon Resources, commented, "As our first horizontal well, Alkaid #2 is an important operation for Pantheon. The long-term production test through the horizontal section will define the resource and aid the understanding and future development potential of Alkaid. But most importantly, if successful, it will begin generating revenue for the Company. The Alkaid #2 well is the first production well in this new oil field using unconventional technology. As is typical in the industry, we will apply what we learn from this well to subsequent wells in order to optimise future drilling, testing and production.
"The appraisal of the Shelf Margin Deltaic and the deeper portion of the Alkaid horizon has the potential to provide significant upside combined with our other discoveries. Commercial success at any standalone project, along with our geographic location, onshore and adjacent to export infrastructure in a low sovereign risk jurisdiction, would be transformational for Pantheon."
Bob Rosenthal, Technical Director, commented, "Alkaid #2 marks Pantheon's transitioning process from explorer to producer, where we now begin to focus on optimising the development of these large resources. As for any new field, being the first horizontal well, we will be conservative in our drilling to minimise the chances of operational issues and assist in future well design.
"We have discovered a lot of oil on the ANS across our Theta West, Talitha and Greater Alkaid projects which are estimated by management to contain over 23 billion barrels of Oil in Place and over 2.3 billion barrels of recoverable resource in those horizons that have flowed oil, and Alkaid #2 could add to these estimates."
A new audio interview with Gil.
https://www.alignresearch.co.uk/eco-atlantic-oil-gas/dr-michael-green-interviews-gil-holzman-ceo-of-eco-atlantic-oil-gas/
Dr. Michael Green, resources analyst at Align Research, interviews Gil Holzman, CEO of Eco Atlantic Oil & Gas
Key questions posed:
1 – Matters have been active at ECO in recent weeks, talk us through the rationale behind the JHI deal cancellation and the new cash raise announced on Monday
2 – You seem to have landed fantastic exposure re the Namibian and SA fields given recent finds by majors – what CoS do you put on the upcoming Gazania drill?
3 – Why do you think despite the plethora of broker notes highlighting the undervaluation of ECO that the shares continue to trade at a derisory level?
4 – What are plans offshore Guyana for 2022/23 given it is near 3 years now since the “heavy oil” announcement? Why is it not profitable to develop and pump given current oil prices?
5 – How do you see the news landscape for shareholders panning out during the balance of 2022?
6 – What is the endgame for ECO shareholders on an 18 month – 2 year view?
https://ihsmarkit.com/research-analysis/the-upcoming-and-highly-anticipated-gazania1-well.html
The upcoming and highly anticipated Gazania-1 well has the potential to create significant value for both investors and South Africa
28 June 2022 Analene Enslin Erik Meyer
The Gazania-1 new-field wildcat is targeting the up-dip extension of the proven 1988 Soeker oil-bearing A-J 1 discovery, located within the Orange Sub-basin. The discovery well encountered lacustrine sandstones with fair reservoir quality, exhibiting porosities between 10-15%. Although deemed sub-commercial, A-J 1 proved the presence of a working oil-prone hydrocarbon system within the A-J graben, significantly de-risking the Gazania prospect and the overlying Namaqualand prospect.
Upside potential to the Gazania prospect is found in an overlying, separate package of fluvial-deltaic sandstones of the Namaqualand prospect. Both prospects rely on an updip trapping geometry where the sandstones pinch-.......................
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New video :
Alkaid Pad - Ready for the Rig
https://www.proactiveinvestors.co.uk/companies/news/986078/pantheon-resources-elephants-have-broker-excited-986078.html
Pantheon Resources "elephants" have broker excited
The lower basin floor fan of the Theta West structure is the "giant elephant" but the broker also has high hopes for the Alkaid#2 appraisal well, aka the "baby elephant"........................................