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Pantheon Resources (PANR) announced the validation of its revised frac design and successful fluid sampling. The company reported that testing operations have been successful at demonstrating producible oil from the SMD horizon in the Aphun field and the strategy to move to regulatory approvals for the Ahpun field development and to proceed with a hot tap into the TAPS main oil line is said to have been reinforced. The plan targets final investment decision by the end of 2025 with first production to follow in early 2026. Estimated costs to first production are conservatively estimated at $120 million. The company has a good chance of being able to finance this, since with a current nine figure market capitalisation and a large investor audience, convertible debt would be viable for a lender/financier.
I said last week that 88 Energy (88E) was likely to benefit from Pantheon’s upcoming announcement and so it turned out to be. 88E was up 23% at one stage and PANR down 15%. This upset some people, but markets can be strange things.
Angus Energy (ANGS) announced an updated Saltfleetby CPR and a Balcombe oil field update. The updated CPR was commissioned on the basis of the company’s decision to drill two new wells in 2025-2026, for a total of five wells producing from the Westphalian Main Reservoir along with potential for conversion for gas storage or CO2 injection in the future. The P90 NPV10 valuation is £57.1 million and the P50 NPV10 valuation £64.5 million, post tax and including the full impact of the Energy Profits Levy. Regarding Balcombe, the High Court has upheld its right to test the existing well and testing operations can now be restarted according to normal oilfield practice to determine the commercial viability of the discovery. Angus presently has a 25% interest in the licence and is in discussions with the 75% majority partner regarding that interest and the work programme with regard to the project's various stages. Interestingly, in the 40 years of this site's existence there has never been any hydraulic fracturing employed.
Europa Oil & Gas (EOG) and Union Jack Oil (UJO) announced Wressle updates. Workover operations on the Wressle-1 well to install a downhole jet pump and recomplete the well have successfully concluded and re-instatement of production operations are expected this coming week. EOG holds a 30% economic interest in Wressle, UJO holds 40%.
Zephyr Energy (UK: ZPHR, US: ZPHRF) announced a Paradox project update plus an agreement to further expand the project by farming-in to the Salt Wash field, a previously producing asset with proven oil, gas and helium reserves located directly to the south of the company's White Sands unit in Utah. Preparations for re-drill of the State 36-2 well have commenced; timing is dependent upon securing an appropriate rig. Additionally, Zephyr plans to drill a second well in the Paradox Basin in the first half of 2024 and it is expected that a single rig contract may cover the drilling of both wells, providing efficiencies and reduced costs. The second well is to be drilled on the Salt Wash field, referred to above.
Now, on to the section of companies issuing news last week in which I’m investing.