PFE Signs Rig Agreement For First Well Test

Our micro cap lithium brine exploration Investment Pantera Minerals (ASX: PFE) has signed a rig agreement to re-enter and test the first well at its Smackover lithium brine project in Arkansas, USA.

This marks a significant step forward as PFE aims to establish a maiden JORC resource and advance towards potential production amid surging interest in the region's lithium-rich brines.

PFE has contracted Production Services Inc to provide a workover rig for re-entering an existing well at its Smackover project.

Here is what it may look like:

(Source)

Initial well work is expected to begin in mid-October, with the re-entry and brine sampling commencing late October.

Just one month to go.

Meanwhile, Exxon Mobil has finished up 8 wells on its Arkansas Smackover Lithium Brine project including one on the east border of PFE’s acreage position.

We take that as a good sign of the quality of brine in PFE’s area.

The Smackover is a hub of activity and everyone knows everyone (we’ve been there to see it ourselves too)

Pantera to re-enter wells for lithium brine as oil major neighbour Exxon starts pre-sales of lithium.

Key Findings:

• The sampled lithium grades will provide the most accurate data to date on PFE's project
• This will allow PFE to update its current 436,000 to 2,966,000 tonne lithium carbonate equivalent (LCE) exploration target
• Brine assays are crucial for resource modelling and selecting the optimal location for a second well
• The well location has potential for both production and disposal, enabling a pilot plant in 2025

Why does this matter?

PFE’s project is in the Smackover and is in close proximity to major players like ExxonMobil, Standard Lithium, and Albemarle.

Establishing a JORC resource and de-risking the project through brine sampling and pilot testing we think would help further establish PFE’s place in the region.

Here is a map of where our Investment Pantera Minerals is located in the region:

(Source)

With ExxonMobil targeting 75,000-100,000 tonnes per annum of lithium carbonate production by 2027 - and a well on the border of PFE’s acreage we hope this well re-entry program delivers a high concentration of lithium in a brine sample.

What’s Next?

Below is a list of the key catalysts PFE is working toward, from a recent investor presentation the company put out.

(Source)

In the short-term we want to see PFE deliver the following two catalysts:

• Re-enter a well 🔲
• The first step toward converting its exploration target into a maiden JORC resource will be to re-enter historic oil & gas wells that sit on its acreage.
• The goal for the re-entry programs will be to see how much lithium sits in the ground, the concentrations and how easy it is to extract (permeability/porosity).

DLE test 🔲

• The re-entry will bring up samples which PFE can then send off to DLE (Direct Lithium Extraction) tech partners.
• If PFE continues making progress along these milestones, we think it should move closer to achieving our ultimate upside case for our PFE Investment.