REG - Pantheon Resources - Preliminary Log, Core and Cuttings Analysis

Pantheon ResourcesAnnouncement

22/01/2025 07:00

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RNS Number : 1962U  Pantheon Resources PLC  22 January 2025

22 January, 2025

 

 

 

 

Pantheon Resources plc

Megrez-1 Upgrade After Preliminary Log, Core and Cuttings Analysis

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, will be presenting at the Sequire Investor Summit today. The Company
will be outlining results of log, core and cuttings analysis from the Megrez-1
well and a consequnetal anticipated upgrade of resource for Ahpun's Eastern
Topset. The Company also provides  an update on its flow testing plans.

Key Points

·    Increase in Total Hydrocarbon Column to 2,310ft Vertical Thickness
("TVT"): Further analysis of the logs, cores and cuttings (using AHS Baker
Hughes' VAS service) indicates that Megrez-1 has intersected a larger
hydrocarbon liquid column than originally identified

·    Potential 15% - 50% Resource Upgrade in Four Originally Identified
Oil Horizons: The impact of incorporating the increased net pay thickness to
670 feet ("ft") TVT vs 300ft TVT pre-drill estimate for Upper Schrader Bluff
and Prince Creek formations indicates the potential for a 15% - 50% increase
in resource estimates vs pre-drill estimates of 609 mmbbls based on
preliminary volumetrics

·    Initial Four Flow Tests Planned at 10 Days Each, Beginning in Q1
2025: Resources expected to be reclassified to contingent resources (2C) upon
successful flow testing

·    Three Additional Potential Oil Bearing Zones in the Lower
Sagavanirktok Formation (Above Prince Creek Formation): Log and cuttings
analysis identified 670ft TVT of potential net pay with excellent porosities
and permeabilities adding c. 1,620ft measured depth ("MD"), equivalent to
1,040ft TVT resulting in substantial additional resource upside potential

·    Likely Requirement for Three Further Flow Tests: These additional
Lower Sagavanirktok zones will be tested, if confirmed by further logs and
analysis, prior to suspension of the well as a potential future
producer/injector

·    All Potential Reservoirs Interpreted to Contain Oil with Associated
Natural Gas: Volatiles Analysis Service ("VAS") results, based on the
cuttings, indicate liquid hydrocarbons throughout the entire (now estimated)
c. 2,310ft TVT gross column containing 1,340ft TVT that is interpreted as net
pay.  Gas isotube analysis indicates associated gas with the oil.

Bob Rosenthal, Technical Director of Pantheon Resources, said: "The
preliminary assessment of the Megrez-1 well results already far exceeds
pre-drill estimates. The Megrez structure appears to have trapped a larger
pool than we expected. The additional prospective zones in the Lower
Sagavanirktok Formation, identified above the Prince Creek Formation, provide
further upside that we had not previously considered.

"We will require extensive further work to map their extent and assess the
best flow testing strategy. Megrez-1 is particularly exciting, especially
considering its size and location - being virtually under the Trans Alaska
Pipeline."

David Hobbs, Executive Chairman of Pantheon Resources, said: "It is very early
to put estimates on the Ahpun Field's eastern conventional reservoir
accumulations but preliminary analysis to include the additional five zones
beyond the pre-drill prognosis hints at a best estimate of expected ultimate
recoveries for the entire Ahpun field that may compete with Kodiak field
estimates.

"The commercial significance of the Megrez-1 well will be better understood
once all the zones are tested but the belief shown by Bob Rosenthal and the
Geoscience team in this prospect has been fully vindicated."

Confirmation of Initial Well Results, Resource Upgrade and Testing Program

Further analysis of the logs, cores and cuttings (using AHS Baker Hughes' VAS
service) indicates that Megrez-1 has intersected a total of seven horizons
interpreted as containing liquid hydrocarbons over some 3,680ft MD (2,310ft
TVT). Megrez-1 encountered potential oil pay beginning at 4,680ft MD or
4,514ft true vertical depth ("TVD") all the way to the bottom of the Upper
Schrader Bluff TS3 at 8,365ft MD The integrated analysis indicates the
following hydrocarbon bearing zones:

 Formation                   Pay Interval (MD ft)  Pay Interval (TVD ft)  Test Perforation Interval MD (ft)  Net Pay (TVD ft)
 Lower Sagavanirktok (3)     TBC                   TBC                    4,680 - 5,010                      TBC
 Lower Sagavanirktok (2)     TBC                   TBC                    5,240 - 5,600                      TBC
 Lower Sagavanirktok (1)     TBC                   TBC                    5,760 - 5,985                      TBC
 Upper Prince Creek          6,300 - 6,675         5,435 - 5,670          6,300 - 6,580                      160
 Lower Prince Creek          6,675 - 7,140         5,670 - 5,955          6,700 - 6,950                      140
 Upper Schrader Bluff (TS1)  7,145 - 7,940         5,955 - 6,445          7,140 - 7,650                      210
 Upper Schrader Bluff (TS3)  7,940 - 8,365         6,445 - 6,705          7,940 - 8,360                      160

The first four flow tests, planned for 10 days each, will be conducted in the
Upper Schrader Bluff and Prince Creek formations. In the event of successful
flow tests, the reservoir characteristics estimated from cores, logs and
cuttings analysis, preliminary volumetric analysis points to c. 670ft TVD net
pay (approximately double pre-drill estimates) and would lead to a significant
increase in management best estimates of expected ultimate recoverable
resources. Post-drill estimates point to the potential of a 15% - 50% increase
from pre-drill volumetric estimates.

Prospective (2U) resources would be reclassified as contingent resources (2C)
upon successful flow testing. The Company expects aggregate flow rates from
the initial tests comparable to other Brookian discoveries on the North Slope,
including Willow and Pikka/Horseshoe.

Additional Prospective Horizons

Additional potential thick oil bearing horizons have been identified in the
shallow section above the initial major target zones of the Upper Schrader
Bluff and Prince Creek formations which appear to be high quality oil bearing
sands. These zones could not be reliably identified on Amplitude versus Offset
("AVO") analysis due to their shallower depth and seismic survey parameters
hence the likelihood of a valid trap and potential size of the resource was
difficult to assess pre-drill. These zones have now been analysed as
containing oil saturations sufficient to merit flow testing.

These additional oil bearing zones above the Prince Creek exhibit high
porosities and permeabilities that total c. 1,620ft of measured depth (1,155ft
TVD). Preliminary estimates of net pay in these Lower Sagavanirktok horizons
amount to a further vertical 670 ft TVD and, if confirmed will result in a
further three flow tests prior to suspension of the well as a potential future
producer/injector.

The results of further analyses of the logs cores and cuttings, along with
volumetric estimates for these three additional horizons and any flow testing
results will be shared when available.

In accordance with the AIM Rules - Note for Mining and Oil & Gas Companies
- June 2009, the information contained in this announcement has been reviewed
and signed off by David Hobbs, a qualified Petroleum Engineer and a member of
the Society of Petroleum Engineers, who has 40 years' relevant experience
within the sector.

 

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 (about%3Ablank) .

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