88E neighbour $1.4BN Pantheon just weeks away from flow test
Just last week UK-listed Pantheon Resources (capped at $1.4BN) put out an operational update on the drilling of its first horizontal production well, which is being drilled next door to ground held by our oil and gas exploration Investment 88 Energy (ASX: 88E).
Pantheon confirmed that it has paused flow testing while it brings in longer term production testing equipment. Pantheon is now going through the clean up process where fracking fluids are recovered and the well is cleaned up for a longer term production test.
Pantheon CEO Jay Cheatham said, “We hope to complete our clean-up programme at Alkaid #2 over the next several weeks and we will announce the results of flow testing once complete”.
This should mean we get to see a flow rate from 88E’s neighbour in the coming weeks.
If the news is positive the market could start to show a lot of interest in 88E’s upcoming drilling program (next door to Pantheon).
For some context on why this news matters to 88E:
- Ground next door to Pantheon - 88E’s Icewine East project sits right next door to the wells Pantheon has been drilling and more importantly the Alkaid #2 well where it is looking to get a commercial flow test from.
- 3D seismic data in place - 88E acquired 3D seismic data over its project with an independent review of the data indicating that the reservoir units Pantheon are flow testing extend into 88E’s ground.
- Prospective resource announced - 88E recently announced 1.03 billion barrels on a gross mean unrisked basis at its project.
- Drilling now planned for 2023 - 88E confirmed it will drill the Hickory-1 well in 2023, looking to test the same reservoir units Pantheon has had success drilling.
We will continue to monitor Pantheon’s news flow to see what comes from its flow testing program.
