Pantera Minerals Prepares for First Well Test at Smackover Lithium Brine Project
PANTERA MINERALS LIMITED (PFE) Share Update September 2024 Monday 9th
Pantera Minerals Signs Rig Agreement for Smackover Lithium Brine Project
Pantera Minerals Limited (ASX: PFE) has announced a significant milestone in its Smackover Lithium Brine Project in Arkansas, USA. The company has signed a Master Services Agreement with Production Services Inc. to commence testing of its first well.
Instant Summary:
- Pantera signs rig agreement with Production Services Inc. for first well re-entry.
- Initial well work to begin mid-October, re-entry starting late October.
- SLB to design and advise on Smackover testing procedure.
- Brine samples to be collected to determine lithium grade.
- Results to update exploration target and guide future well locations.
- Potential for production and disposal to operate a pilot plant in 2025.
Project Overview
Pantera Minerals Limited has taken a significant step forward in its Smackover Lithium Brine Project by signing a Master Services Agreement with Production Services Inc. This agreement will facilitate the re-entry and testing of the first well at the project site in Arkansas, USA.
The initial well work is expected to commence in mid-October, with re-entry operations starting in late October. The testing procedure has been designed and will be advised by SLB, ensuring a thorough and accurate assessment of the lithium brine potential.
Testing and Sampling
The primary objective of this well re-entry is to collect brine samples from the upper Smackover Formation. These samples will be analyzed to determine the lithium grade, providing the most accurate information to date. This data will be crucial for updating the project's exploration target and for modeling resource definitions. Additionally, it will help identify the optimal location for a second well.
Strategic Importance
The well's location is strategically chosen to allow for both production and disposal, which is essential for the planned pilot plant operations in 2025. The project covers over 26,000 net leased acres of lithium brine prospective ground in the Smackover Formation, a region known for its high-grade lithium brine deposits.
Industry Context
Pantera's project is surrounded by significant industry players, including Exxon Mobil and Equinor. Exxon Mobil has completed its first round of drilling with eight wells, one of which is on the east border of Pantera's acreage. Their strategic plan includes constructing a sizable lithium brine processing facility. Equinor has also entered the Smackover Formation with a substantial investment in Standard Lithium's brine projects.
Forward Focus
Looking ahead, Pantera plans to continue growing its Smackover Project through additional acreage acquisitions and discussions with Direct Lithium Extraction (DLE) technology providers. The company aims to conduct a pilot plant test on-site in early 2025, further advancing its project towards full-scale production.
This announcement marks a significant milestone for Pantera Minerals, potentially boosting investor confidence and attracting attention from major industry players. The successful testing and sampling of the first well could lead to a substantial increase in the project's valuation and future resource estimates.
Investor Reaction:
Analysts are likely to react positively to this announcement, given the strategic importance of the Smackover Formation and the involvement of reputable companies like SLB and Production Services Inc. The potential for high-grade lithium brine samples could significantly enhance the project's attractiveness to investors.
Conclusion:
Investors should closely monitor the progress of the well re-entry and testing operations. The results will provide crucial data for future resource estimates and project development plans. Pantera Minerals' strategic positioning and partnerships indicate a promising future for the Smackover Lithium Brine Project.