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Oil patch insider: Pantheon drilling Dubhe-1;
S&P affirms Chugach credit ratings
Kay Cashman Petroleum News
On July 22 Pantheon Resources started drilling the Dubhe-1 appraisal well at the company's Ahpun oil field on the North Slope of Alaska.
Dubhe-1 will target the topset horizon, SMD-B, as the primary target, appraising an already discovered resource.
An independent expert report completed by Cawley Gillespie & Associates in June 2024 estimates the primary target to contain a 2C Contingent Resource of 282 million barrels of Alaska North Slope crude (oil, condensate and NGLs) and 804 billion cubic feet of natural gas.
The well is also designed to encounter three additional exploration horizons (Prince Creek, SMD-C and the Slope Fan System), none of which have any resource estimate attributed to them at the present time but offer additional upside potential if successful.
Max Easley, CEO of Pantheon, was quoted in a press release as saying: "Assuming initial appraisal success at Dubhe-1, it will then allow us move forward into a test phase with the ultimate goal of accurately demonstrating a production type curve which would in turn underpin the planned Ahpun full field development, whilst at the same time supporting the natural gas volumes required for the proposed long term gas supply contract into the proposed Alaska natural gas pipeline (Alaska LNG -- Phase 1)."
Chugach Electric credit ratings affirmed S&P Global Ratings has affirmed Chugach Electric Association's credit rating of "A" with its short-term commercial paper program affirmed at "A-1", the association said July 16.
The rating agency also provides an outlook of "stable" for Chugach.
In its report dated July 15, S&P cites several reasons for affirming Chugach's rating including its diverse generation resource portfolio, "which exhibits significant capacity, efficiency, and economics, and our view that management is being proactive in terms of power and gas supply strategy."
Additionally, S&P's rating reflects their view of Chugach's positive and supportive relationship with the Regulatory Commission of Alaska.
"Chugach's management is proactive and sophisticated, with prudent policies in place, including robust physical and cybersecurity protocols and excellent disclosure, wildfire mitigation, and strategic planning process," the report states.
"We take our credit worthiness very seriously and are pleased to have our credit ratings affirmed by S&P," said Chugach CEO Arthur Miller. "Consistent strong credit ratings result in lower costs for our members as we can secure more favorable loan terms and borrowing costs."
In its report, S&P cites some offsets to Chugach's strengths, such as the possible rate impacts of transitioning to importing liquified natural gas in the future, continued stagnant energy sales and revenue as the result of energy efficiency over the last few years and mild weather in recent months.
Chugach is the largest electric utility in Alaska, providing power for more than 90,000 members from south Anchorage to the northern Kenai Peninsula, and from Whittier on Prince William Sound to Tyonek on the west side of Cook Inlet.
--Oil Patch Insider is compiled by Kay Cashman
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