REG - Pantheon Resources - Rig for Megrez-1 Well and Award of New Leases

Pantheon ResourcesAnnouncement

12/08/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240812:nRSL9869Za&default-theme=true

RNS Number : 9869Z  Pantheon Resources PLC  12 August 2024

12 August 2024

 

Pantheon Resources plc

Pantheon Secures Rig for Megrez-1 Well and Award of New Leases

 

Pantheon Resources plc (AIM: PANR) ("Pantheon" or "the Company"), owner of
100% working interest in the Kodiak and Ahpun oil fields, containing
independently evaluated recoverable contingent  resources of c. 1.6 billion
barrels ("Bbbl") of ANS crude and 6.7 trillion cubic feet ("Tcf") of natural
gas in close proximity to pipeline and transportation infrastructure on
Alaska's North Slope, is pleased to announce that it has executed a rig
contract to secure the use of the Nabors 105AC rig to drill the Megrez-1 well
in Q4 2024.

 

Pantheon also announces that the leases which it successfully bid for in
December 2023 have been awarded and are expected to be issued within the
coming weeks.

 

Execution of Drill Rig Contract

 

Pantheon has formally contracted to use the Nabors 105AC drill rig, a rig the
Company is familiar with having used it in previous drilling campaigns, to
drill the Megrez-1 exploration well which will target the Ahpun East topset
play. Siteworks for construction of a gravel pad along the west side of the
Dalton Highway are expected to commence in September and upon completion of
these siteworks the drill rig will be mobilised.

 

The Megrez-1 well is estimated to have a 69% geological chance of success and
will target the topset sands in Ahpun East project area which the Company
estimates to contain a 2U Prospective Resources of 609 million barrels of
marketable liquids and 3.3 Tcf of natural gas. The Ahpun East topsets are
significantly shallower than the Ahpun western topsets drilled previously.

 

Formal Award of Leases

 

The Company has also paid the remaining portion of the fees for the 46 new oil
and gas leases acquired in the State of Alaska's 2023W Areawide oil and gas
lease sale held in December 2023 as announced on 14 December 2023
(https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/x818epw)
. Based on the official title work done by the State prior to awarding the
leases, the 46 new leases consist of an aggregate of 65,691.5 acres, 30 of
which are located on the western boundary of the Kodiak Field and 16 of which
cover the Ahpun East topset play. The State of Alaska will execute and issue
the leases in the next few weeks.

 

Jay Cheatham, Pantheon's Chief Executive, commented: "With a management best
estimate for the eastern topsets in Ahpun at over 1 billion barrels of oil
equivalent 2U Prospective Resource to be tested by the Megrez-1 well, located
immediately adjacent to pipeline and road infrastructure and in reservoirs
expected to be orders of magnitudes better than western topsets, we believe
this to be one of the most impactful onshore exploration well being drilled
anywhere in the world during 2024. Success here would further advance our
Ahpun development models and plans."

 

 

Further information, please contact:

 

Pantheon Resources plc               +44 20 7484 5361

David Hobbs, Executive Chairman

Jay Cheatham, Chief Executive Officer

Justin Hondris, Director, Finance and Corporate Development

 

Canaccord Genuity plc (Nominated Adviser and
broker)               +44 20 7523 8000

Henry Fitzgerald-O'Connor

James Asensio

Charlie Hammond

 

BlytheRay           +44 20 7138 3204

Tim Blythe

Megan Ray

Matthew Bowld

 

 

Notes to Editors

 

Pantheon Resources plc is an AIM listed Oil & Gas company focused on
developing its 100% owned Ahpun and Kodiak fields located on State of Alaska
land on the North Slope, onshore USA. Independently certified best estimate
contingent recoverable resources attributable to these projects currently
total c. 1.6 billion barrels of ANS crude and 6.7 Tcf of associated natural
gas. The Company owns 100% working interest in c. 259,000 acres with the award
of the additional 66,240 acres.

 

Pantheon's stated objective is to demonstrate sustainable market recognition
of a value of $5-$10/bbl of recoverable resources by end 2028. This is based
on bringing the Ahpun field forward to FID and producing into the TAPS main
oil line (ANS crude) by the end of 2028. The Gas Sales Precedent Agreement
signed with AGDC provides the potential for Pantheon's natural gas to be
produced into the planned 807 mile pipeline from the North Slope to
Southcentral Alaska during 2029. Once the Company achieves financial
self-sufficiency, it will apply the resultant cashflows to support the FID on
the Kodiak field planned, subject to regulatory approvals, targeted by the end
of 2028 or early 2029.

 

A major differentiator to other ANS projects is the close proximity to
existing roads and pipelines which offers a significant competitive advantage
to Pantheon, allowing for materially lower infrastructure costs and the
ability to support the development with a significantly lower pre-cashflow
funding requirement than is typical in Alaska. Furthermore, the low CO2
content of the associated gas allows export into the planned natural gas
pipeline from the North Slope to Southcentral Alaska without significant
pre-treatment.

 

The Company's project portfolio has been endorsed by world renowned experts.
Netherland, Sewell & Associates estimate a 2C contingent recoverable
resource in the Kodiak project that total 1,208 mmbbl of ANS crude and 5,396
bcf of natural gas. Cawley Gillespie & Associates estimate 2C contingent
recoverable resources for Ahpun's western topset horizons at 282 mmbbl of ANS
crude and 803 bcf of natural gas. Lee Keeling & Associates estimated
possible reserves and 2C contingent recoverable resources totalling 79 mmbbl
of ANS crude and 424 bcf.

 

 

 

Glossary

 

2U: The unrisked best estimate qualifying as Prospective Resources

ANS: Alaska North Slope

Bbls: Barrels

Bbbl: Billion barrels

Bcf: Billion cubic feet

Mmbbl: Million barrels

NGLs: Natural gas liquids (NGL) are components of natural gas that are
separated from the gas state in the form of liquids.

Overriding Royalty Interest (ORRI): A royalty granted to a third party other
than the royalty payable to the State of Alaska.

Prospective Resources: Prospective Resources are those quantities of petroleum
which are estimated, on a given date, to be potentially recoverable from
undiscovered accumulations.

Tcf: Trillion cubic feet

Working Interest: The legal ownership of the leases awarded by the State of
Alaska. Pantheon's Net Revenue Interest (NRI) in the leases is less than 100%
by virtue of royalties payable to the State and any ORRI. In the case of
the Kodiak project, the State royalties vary between 12.5% and 16.67%.
Management estimates that the average NRI is approximately 85%.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCSFWFUFELSEDA