Pantheon Resources has been conducting well clean-up operations on the Dubhe-1 well with an aim to determine a representative oil flow rate.
The clean up profile might need alteration to suit the well's multiple fracked stages, each differing from the previous single zone completion and requiring clean up at different points in time.
While the company's budget for well completion was set at approximately US$15mn, well planning and data gathering led to modified final costs. As clean-up continues alongside flow-back and well testing activities, these costs will be determined at the end of the programme.
Production from the Dubhe-1 well is dominated by previously injected stimulation fluids. After intermittent production, consistent small oil volumes have been visible, with boosted gas production throughout the period. Till now, approximately 40% of the injected water volume has been produced with steady gas production along with the modest production of light oil. The company's closest analog to this well is the SMD-B interval in Alkaid-2 which was flow tested in 2023 and first measured oil production when a water volume equivalent to approximately 50% of the injected water volume had been produced.
The company recorded approximately US$33mn in drilling and completion costs, a marked increase over the original budget, as it had to drill a pilot hole to allow core samples to be collected, to better refine the target landing zone and to penetrate the deeper Slope Fan System (SFS) as well as the shallower SMD-C reservoir target.
Overall, this cost outcome, inclusive of full appraisal scope, contingency measures (e.g. standby drilling rig and coil tubing unit based on the experience at Alkaid-2), and inflationary pressures, does not detract from a solid operating performance. In addition, the construction of the new Dubhe pad, which will also be available for the drilling of future wells, cost $2.5 million. Clean-up, flow-back and well testing operational costs will be determined at the end of the programme.
Max Easley, Chief Executive Officer, said, "I continue to be pleased with the ongoing safe and efficient execution of our operations to date and look forward to sharing more about Dubhe-1 results when we have them."
