REG - Pantheon Resources - Resource Upgrade

Pantheon ResourcesAnnouncement

25/04/2022 07:00

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RNS Number : 1302J  Pantheon Resources PLC  25 April 2022

25(th) April 2022

Pantheon Resources

Resource Upgrade

 

Pantheon Resources plc ("Pantheon" or  the "Company"), the AIM-quoted oil
and gas company with a 100% working interest in all of its oil projects
spanning c. 153,000 acres adjacent and near to transportation and pipeline
infrastructure on the Alaska North Slope, is pleased to provide a management
resource upgrade on the Lower Basin Floor Fan ("LBFF") at Theta West and an
Oil in Place estimate on the Slope Fan System ("SFS") at Talitha, in advance
of the Shareholder Presentation and Q&A session ("Webinar") to be held at
5:30pm BST on Tuesday 26 April 2022.

 

Highlights

·    A significant management resource upgrade in the LBFF at Theta West
to 17.8 billion barrels of oil in place ("OIP"), a 61% increase on previous
estimates, and a recoverable resource of 1.78 billion barrels as a most likely
case, a 48% increase on previous estimates.

o  Given the discoveries of oil confirmed by testing in the LBFF at Theta
West, and previously at Talitha #A, as well as the oil encountered at Pipeline
State #1, the Company believes the above estimate could be categorized as a
Contingent Resource.

o  The new discovery of oil in the SFS at Talitha which management believes
has the potential to contain 2.2 billion barrels of OIP, opening up another
significant development opportunity in and around the current resource base.
Additional analysis is required before Pantheon can estimate the recoverable
resource in the SFS.

·    These resource upgrades will be discussed in the upcoming webinar,
along with the expectations for the Alkaid #2 well, planned for July 2022.

 

Resource Upgrades

 

Lower Basin Floor Fan at Theta West #1

 

Pantheon is pleased to report that it has now completed its internal analysis
of the LBFF system encountered in the Theta West #1 well. Management estimates
the LBFF contains 17.8 billion barrels of OIP and a Contingent Resource
(recoverable) of 1.78 billion barrels as a most likely case, both significant
increases on previous estimates. There are now three well penetrations into
the LBFF all confirming oil, which combined with the high quality 3D seismic
provides confidence of the large resource potential of this accumulation. The
resource upgrade is mostly derived using new reservoir parameters encountered
in the Theta West well and greater confidence about the reservoir in general
over this large area.

 

Theta West confirmed the Company's prognosis of greatly improved reservoir
quality, and thus a deterministic model was constructed of the reservoir using
the reservoir parameters of Talitha #A in the down dip portion of the oil
accumulation and reservoir parameters from Theta West #1 in the updip portion
of the oil accumulation. The Theta West reservoir is some 1,500 feet shallower
and some 10.5 miles in distance from the Talitha location. At tomorrow's
Webinar the Company will show a histogram of the reservoir characteristics at
both locations, which will pictorially illustrate the improvements.

 

 

 Lower Basin Floor Fan Estimates
                                  2021 Programme  2022 Winter Programme
 Oil in Place (mmbo)              11,200          17,800
 Recoverable Resource (mmbo)      1,200           1,780

 

Prior to shutting in the Theta West #1 well due to the onset of extreme
weather, the data obtained during testing had indicated reservoir quality
superior to Talitha #A with high quality light oil encountered across the
entire section. Samples analysed to date by AHS/BakerHughes, independently
contracted to undertake Volatiles Analyses, has also confirmed the presence of
light oil within each and every sample taken across the LBFF.  As for all new
oilfield discoveries, ultimate commerciality will require long term production
testing such as that planned to spud in July at Alkaid #2 and be the first
commercial production test of the Brookian sequence in the Pantheon acreage.

 

Slope Fan System at Talitha #A

 

The Company has also completed its initial analysis of the SFS, a secondary
target at the Talitha #A well which management estimates to contain 2.2
billion barrels of OIP. Additional analysis still needs to be undertaken
before Pantheon can advise on a recoverable resource estimate for the SFS.
Further details will be provided in due course.

 

During the 2022 winter testing programme, Pantheon successfully stimulated and
flow tested the two lobes of the SFS in the Talitha #1 well, producing high
quality c.35 to 38 degree API oil and averaging 45 barrels of oil per day
("BOPD") over a three day test period.

 

The two SFS lobes are in two distinct trapping systems and suggest very good
reservoir properties. The Company's initial analysis suggests that the deeper
of the two lobes extends below the Alkaid Deep anomaly and will be assessed in
the upcoming Alkaid #2 well, planned for July 2022.

 

Upcoming Webinar

 

During the upcoming Webinar to be held at 5:30pm BST on Tuesday 26 April 2022,
management will discuss these latest resource upgrades from the successful
Theta West and Talitha drilling and testing operations this season,
implications for future project definition and development, as well as next
steps in the operational programme including an insight into the Alkaid #2
well which has both important commercial implications via the extended
production test but also via the appraisal/exploration potential.

 

The presentation is open to all shareholders and interested parties. Those
wishing to participate can register for the Webinar via the link below:

 

https://www.bigmarker.com/share-talk/Pantheon-Resources-Plc-Shareholder-Presentation-and-Q-A-April-2022
(https://www.bigmarker.com/share-talk/Pantheon-Resources-Plc-Shareholder-Presentation-and-Q-A-April-2022)
 

 

Full joining details are available in the previous Webinar announcement,
published on 20 April 2022.

 

Bob Rosenthal, Technical Director, commented, "This season has been a great
one for Pantheon resulting in material resource upgrades. Most importantly,
our pre drill predictions were well founded and proved in Theta West #1,
demonstrating our ability to identify the oil from our high quality 3D seismic
and other analytical tools. Jerry Nichols, one of our consulting
geophysicists, will explain the upgraded resource numbers tomorrow using a
histogram developed by Roger Young from eSeis. What you won't see however, are
the 22 maps required to model the reservoir correctly and derive the new 17.8
billion barrels of OIP."

 

Jay Cheatham, CEO of Pantheon Resources, commented, "The Theta West project
continues to improve as we do further technical work, proving itself as a
significant discovery with an estimated 1.78 billion barrels of recoverable
resource. Coupled with our initial estimate of 2.2 billion barrels of oil in
place in the Slope Fan System, this recent analysis further validates the
potential impact of our 100% owned projects on the North Slope. We met our
expectations of improved reservoir at the updip Theta West #1 location for the
LBFF. Tomorrow's Webinar will showcase these results.  In addition to Bob's
geologic team discussing the results, Michael Duncan, our VP of Operations
& Engineering, will present our analysis of the winter results
operationally and plans for continued exploitation beginning with production
testing this summer at Alkaid #2. I would like thank shareholders for their
continued support and for sharing our belief in the potential of our
projects."

 

Glossary

 Contingent Resource  Contingent Resources are those quantities of petroleum which are estimated, on
                      a given date, to be potentially recoverable from known accumulations, but
                      which are not currently considered to be commercially recoverable

 mmbo                 Million barrels of crude oil

 Oil in Place         is a specialist term in petroleum geology
                      (https://en.wikipedia.org/wiki/Petroleum_geology)  that refers to the
                      total oil (https://en.wikipedia.org/wiki/Petroleum)  content of an oil
                      reservoir (https://en.wikipedia.org/wiki/Oil_reservoir)

 SPE                  Society of Petroleum Engineers

 

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 Robert Rosenthal, a qualified Petroleum Geologist, who has
over 40 years' relevant experience within the sector.

 

The Resource estimates has been reported in accordance with SPE standards.

 

For further information on Pantheon Resources plc, see the website
at: www.pantheonresources.com (http://www.pantheonresources.com)

 

The information contained within this Announcement is deemed by Pantheon
Resources PLC to constitute inside information as stipulated under the Market
Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of
the European Union (Withdrawal) Act 2018 ("MAR").

Cautionary Statement: Certain statements and estimates contained in this
announcement carry an associated risk of accuracy as such statements and
estimates are based upon information available at the time of making such
statements. Actual results could differ materially from expectations set out
in such statements. Among other factors, this could be as a result of changes
in economic, market, geological and political factors, the success of future
drilling and geological success, the risk of future drilling changes in the
regulatory environment and other government actions, fluctuations in the price
of oil and exchange rates, and business and operational risk management.

 

-Ends-

 

 

Further information:

 

 Pantheon Resources plc                                             +44 20 7484 5361
 Jay Cheatham, CEO
 Justin Hondris, Director, Finance and Corporate Development
 Canaccord Genuity Limited (Nominated Adviser and broker)
 Henry Fitzgerald-O'Connor, James Asensio                           +44 20 7523 8000
 BlytheRay
 Tim Blythe, Megan Ray, Alice McLaren, Madeleine Gordon-Foxwell     +44 20 7138 3204

 

 

Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas company with 100%
working interests in several large projects located on the North
Slope of Alaska ("ANS"), onshore USA. A major differentiator to other ANS
projects is its close proximity to transport and pipeline infrastructure. The
Group's stated objective is to create material value for its stakeholders
through oil exploration, appraisal and development activities in high impact,
highly prospective conventional assets, in the USA; a highly established
region for energy production with infrastructure, skilled personnel and low
sovereign risk. All operations are onshore USA, with drilling costs
materially below that of offshore wells.

 

Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website)
incorporated into, or forms part of, this announcement.

 

 

 

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