REG - Pantheon Resources - AGDC Support Towards Funding on LNG Pipeline

Pantheon ResourcesAnnouncement

05/12/2024 07:45

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RNS Number : 9503O  Pantheon Resources PLC  05 December 2024

5 December, 2024

 

 

 

 

Pantheon Resources plc

("Pantheon")

AGDC Receives Support Towards Backstop to Funding of FEED on Alaska LNG Phase
1 Pipeline

Pantheon Resources plc (AIM:PANR, OTCQX: PTHRF) ("Pantheon" or the "Company"),
an oil and gas company developing the Kodiak and Ahpun oil fields in close
proximity to pipeline and transportation infrastructure on Alaska's North
Slope, notes the announcement made by Alaska Gasline Development Corporation
("AGDC").

AGDC announced that the Alaska Industrial Development and Export Authority
("AIDEA") has approved a resolution to negotiate a letter of credit with the
AGDC to backstop the costs of Front End Engineering and Design ("FEED") on
Alaska LNG Phase 1, the in-state pipeline portion of Alaska LNG.

Key Points for Pantheon

·    AGDC is the owner of the Alaska LNG Project and the resolution is a
key step to securing private investment in the project and moving to a Final
Investment Decision ("FID").

Pantheon and AGDC signed a Gas Sales Precedent Agreement in June 2024 (the
"GSPA") which includes, among other conditions, a requirement for the Alaska
LNG project to reach FID (see RNS dated 05 June 2024).

·    The value of a take or pay contract under a Gas Sales Agreement based
on the terms of the GSPA, if finalised, could potentially allow Pantheon to
secure funds required to cover capital costs from the  point of Ahpun FID to
cash-flow self-sufficiency.

The full text of the AGDC announcement is available at
https://agdc.us/wp-content/uploads/2024/12/2024-12-04-AGDC-Statement-on-AIDEA-Resolution.pdf
(https://url.avanan.click/v2/___https:/agdc.us/wp-content/uploads/2024/12/2024-12-04-AGDC-Statement-on-AIDEA-Resolution.pdf___.YXAzOnBhbnRoZW9uOmE6bzpkOGY5ZDEzNjhmZWY1NjczYWQyNmI0ODMxMWVjNGUzZTo2OjQ2Mzk6NDcwZGU5NTZjM2QzNzAwZGQ3ODA0ZTA2ZjhiNDc1ZDk3ZDMzMGQyMmVlY2I0NzQxNDRlMzEwMDA1NWY1ZjZiNjpwOlQ6Tg)

David Hobbs, Executive Chairman of Pantheon Resources, said: "We continue to
work closely with AGDC and the key decision makers in the State of Alaska to
ensure that Alaskans get the maximum benefit from gas resources on the North
Slope and to secure an infrastructure project essential to the long term
energy security of the State and with positive impacts on US national
security."

 

 

For further information, please contact:

 

UK Corporate and Investor Relations Contact
Pantheon Resources plc

Justin Hondris

+44 20 7484 5361
contact@pantheonresources.com (about%3Ablank)

 

Nominated Adviser and Broker

Canaccord Genuity Limited

Henry Fitzgerald-O'Connor, James Asensio, Charlie Hammond

+44 20 7523 8000

 

Public Relations Contact
BlytheRay

Tim Blythe, Megan Ray, Matthew Bowld

+44 20 7138 3204

 

USA Investor Relations Contact

MZ Group

Lucas Zimmerman, Ian Scargill

+1 949 259 4987
PTHRF@mzgroup.us (about%3Ablank)

About Pantheon Resources

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 6.6 Tcf (trillion cubic feet) of
associated natural gas. The Company owns 100% working interest in c. 259,000
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 (Alaska Gasline Development Corporation) provides the
potential for Pantheon's natural gas to be produced into the proposed 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 shorter development timeframes, 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 (million barrels) of ANS
crude and 5,396 bcf (billion cubic feet) 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 natural gas.

For more information visit www.pantheonresources.com
(http://www.pantheonresources.com) .

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