REG - Pantheon Resources - Result of AGM & Investor Presentation Details

Pantheon ResourcesAnnouncement

24/01/2024 15:15

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RNS Number : 8107A  Pantheon Resources PLC  24 January 2024

24 January 2024

Pantheon Resources plc

Result of Annual General Meeting & Investor Presentation Details

 

Pantheon Resources plc (AIM: PANR) ("Pantheon" or "the Company"), the oil and
gas company with a 100% working interest in the Kodiak and Ahpun projects,
currently spanning 193,000 contiguous acres in close proximity to pipeline and
transportation infrastructure on Alaska's North Slope, is pleased to announce
that at the Annual General Meeting ("AGM"), held today, all resolutions were
duly passed. A breakdown of the votes will be available shortly on the
Company's website.

 

Updated Presentation

 

Pantheon has uploaded an updated investor presentation to its website, to be
presented at 3.30pm GMT. The presentation includes new information on a
revised Ahpun shelf margin horizon ("topset") well production type curve. This
is based on analysis of the Alkaid-2 re-completion and flow test, conducted in
October 2023, and subsequent analysis of fluid sample data by GeoMark.

 

GeoMark's pressure-volume-temperature ("PVT") analysis of the fluid samples
gathered during the test resulted in a calculated gas oil ratio ("GOR") for
the Ahpun topset of 1,012 standard cubic feet per barrel of oil ("scf/bbl"),
materially less than the calculated 2,000-3,000 scf/bbl which was previously
reported for the Alkaid ZOI. As well as the reduced GOR, GeoMark reported oil
gravity at the outlet of the separator of 35(o) API for the Ahpun topset, with
a liquids(1) yield of 162 barrels of per million cubic feet ("bbls/mmcf").
This is a much richer stream than the 42(o) API oil with 98 bbls(1)/mmcf
produced from the Alkaid ZOI and allows the total liquids flow rate from the
topset to be recalculated to incorporate the yield of marketable liquids from
the associated gas production.

 

Pantheon reports that following incorporation of results of GeoMark analysis,
the flow rate during the Alkaid-2 recompletion in the Ahpun topset was
calculated to be 50-140 barrels per day ("bpd") of marketable liquids, 20-40
bpd higher than the originally announced flow rate.

 

The pressure transient analysis performed following retrieval of the downhole
pressure gauge indicates greatly improved reservoir quality compared to the
Alkaid ZOI. The calculated effective permeability of the Ahpun topset is
estimated to be at least two orders of magnitude (i.e. 100x) better.

 

Pantheon has provided an illustrative model based on Company estimates of the
Ahpun topset type well performance. This results in an IP30 of 4,000 bpd of
marketable liquids, with a first year average production rate of 2,000 bpd,
and estimated ultimate recovery of 2 million barrels ("mmbl") of marketable
liquids per well. This is based on the development well design of 10,000 feet
lateral length, improved frac design, and recognising the improved reservoir
and fluid characteristics. Projections for cumulative cashflows and funding
requirements based on these estimates reinforce the robustness of the Ahpun
development strategy and the ability to deploy cashflows from the initial
wells to fund the expansion to a multi-rig programme and to fund the Kodiak
Field development after its FID (expected by the end of 2028).

 

The presentation is available at:

 

https://www.pantheonresources.com/index.php/investors/presentations
(https://www.pantheonresources.com/index.php/investors/presentations)

 

 

(1) C5+ liquids

 

-ENDS-

 

Further information, please contact:

 

 Pantheon Resources plc                                       +44 20 7484 5361
 David Hobbs, Executive Chairman

 Jay Cheatham, CEO
 Justin Hondris, Director, Finance and Corporate Development

 Canaccord Genuity plc (Nominated Adviser and broker)         +44 20 7523 8000
 Henry Fitzgerald-O'Connor

 James Asensio

 Ana Ercegovic

 BlytheRay                                                    +44 20 7138 3204
 Tim Blythe

 Megan Ray

 Matthew Bowld

 

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, who has nearly
40 years' relevant experience within the sector and is a member of the Society
of Petroleum Engineers.

 

Glossary

 

Alkaid ZOI                             Alkaid Zone of Interest

C5+
Hydrocarbons containing 5 or more carbon atoms (Pentane, Hexane etc)

GOR
The amount of natural gas dissolved in a barrel of produced liquids

IP30
Average Production Rate over first 30 days of production

PVT Analysis                         Measurement of the fluid
characteristics of samples gathered during a test

 

Notes to Editors

 

Pantheon Resources plc is an AIM listed Oil & Gas company focused on
developing the Ahpun and Kodiak fields located on state land on the Alaska
North Slope ("ANS"), onshore USA, where it currently has a 100% working
interest in c. 193,000 acres. In December 2023, Pantheon was the successful
bidder for an additional 66,240 acres with very significant resource
potential, extending the Ahpun and Kodiak project areas. Following the issue
of the new leases, which are expected to be formally awarded in summer 2024
upon payment of the balance of the application monies, the Company will have
a 100% working interest in c. 259,000 acres. Certified contingent resources
attributable to these projects exceeds 1 billion barrels of marketable
liquids, located adjacent to Alaska's Trans Alaska Pipeline System ("TAPS").

 

Pantheon's stated objective is to demonstrate sustainable market recognition
of a value of $5-$10/bbl of recoverable resources by end 2028. This will
require targeting Final Investment Decision ("FID") on the Ahpun field by the
end of 2025, building production to 20,000 barrels per day of marketable
liquids into the TAPS main oil line, and applying the resultant cashflows to
support the FID on the Kodiak field by the end of 2028.

 

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.

 

The Company's project portfolio has been endorsed by world renowned
experts. Netherland, Sewell & Associates ("NSAI") estimate a 2C
contingent recoverable resource in the Kodiak project that total 962.5
million barrels of marketable liquids and 4,465 billion cubic feet of natural
gas. NSAI is currently working on estimates for the Ahpun Field.

 

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