Pantheon Resources Provides Update on Megrez 1 Well Flow Testing
Why we think this is neutral
The RNS provides an update on the flow testing of the first interval at the Megrez 1 well, which did not produce any appreciable oil or gas despite initial strong liquid rates. While the technical data gathered increases confidence in the productivity and hydrocarbon potential of the shallower intervals, the results from the first interval tested were not as positive as hoped. The company remains focused on systematically testing the remaining intervals, but the news does not warrant a 'Good' or 'Very Good' sentiment score.
Key Points
- The Topset 1 interval was fracture stimulated and produced strong liquid rates, but no appreciable oil or gas was recorded at the surface
- Preliminary analysis indicates the reservoir is oil-bearing but in a transition zone with limited to no mobile oil and gas
- The company remains confident in the productivity and hydrocarbon potential of the shallower intervals and will progress to testing the next interval
Summary
Pantheon Resources (AIM:PANR) has provided an update on the preliminary results from the flow testing of the first of six intervals at the Megrez 1 well. The well was fracture stimulated in the Topset 1 reservoir interval, but while it produced strong liquid rates, no appreciable oil or gas was recorded at the surface. Preliminary analysis indicates the reservoir is oil-bearing but in a transition zone with limited to no mobile oil and gas. The company remains confident in the productivity and hydrocarbon potential of the shallower intervals and will progress to testing the next interval, the Lower Prince Creek formation.