Pantheon Resources Exceeds Expectations at Dubhe-1, Shares Surge

Pantheon Resources (LON:PANR) shares rallied on Monday after the company announced positive results from its Dubhe-1 appraisal well.

The stock is up more than 13%, currently trading around the 30.50p mark. While down almost 1% for the year-to-date, PANR has gained 23% in the last week.

The well's findings surpassed pre-drill expectations, confirming significant resource potential and setting the stage for field development.

The Dubhe-1 pilot hole successfully reached its target depth, providing valuable data through logging and coring.

Analysis of the primary target, the SMD-B topset horizon, revealed a gross hydrocarbon column thickness of 565 ft TVT, exceeding pre-drill estimates by 26%.

Beyond the primary target, Dubhe-1 also encountered hydrocarbon-bearing horizons in two exploration targets: the SMD-C and two Slope Fans.

These additional zones, previously unquantified in resource estimates, are said to represent material upside potential for co-development alongside the established Ahpun SMD-B reservoir.

The company said it plans to integrate data from Dubhe-1 and previous wells to refine its reservoir model and optimize field development plans.

A sidetrack lateral in the SMD-B horizon is planned to be drilled and flow-tested. This will help refine the production well type curve.

The newly discovered prospective resources were not factored into the prior Ahpun contingent resource estimate of 282 million barrels of oil and 804 billion cubic feet of gas, prepared by Cawley Gillespie & Associates. This suggests a potential increase in the overall resource base.

Erich Krumanocker, Chief Development Officer, said: “The well confirms the presence and quality of the oil and gas reservoirs in the Ahpun field, exceeding our pre-drill expectations. We are now transitioning toward field development planning in support of capital efficient commercial production.”