Pantheon Resources shares sank on Tuesday after providing an update on its Dubhe-1 well in Alaska, reporting ongoing well clean-up operations amid spluttering production that remains largely dependent on stimulation fluids.
Pantheon Resources shares were down 20% at the time of writing.
Intermittent oil production commenced on 3 November, with consistent volumes beginning around 19 November. Perhaps the most disappointing aspect of the announcement is that the firm still hasn’t managed to measure the well’s oil flow rate.
Approximately 40% of injected water has been produced alongside steady gas and modest light oil output. The company expects oil flow rates to improve as clean-up continues, noting that its comparable Alkaid-2 well achieved measurable oil production after 50% of injected water was recovered.
“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,” said Max Easley, Chief Executive Officer.
Drilling and completion costs totaled approximately $33 million, exceeding the initial $25 million estimate.
The increase reflects the decision to drill a pilot hole for core sampling and to evaluate both the Slope Fan System and SMD-C reservoir targets. The company characterised the outcome as “solid operating performance” given the expanded appraisal scope and inflationary pressures.
The new Dubhe pad, available for future drilling operations, costs an additional $2.5 million.