REG - Pantheon Resources - Rig Contract Executed & Investor Presentation

Pantheon ResourcesAnnouncement

16/05/2022 07:00

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RNS Number : 5340L  Pantheon Resources PLC  16 May 2022

16 May 2022

 

Pantheon Resources plc

Rig Contract Executed & Investor Presentation

 

Pantheon Resources plc ("Pantheon" or "the Company"), the AIM listed 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 announce the
following updates.

 

Rig Contracted for Alkaid #2

 

Pantheon has formally executed contracts for the Nabors 105AC drill rig to
drill the Alkaid #2 well, scheduled to spud in July 2022. If successful,
Pantheon will commence a long term production test and truck and sell the
produced oil to a nearby North Slope facility. The Alkaid #2 well has three
objectives (from shallowest to deepest);

 

i.      To appraise the shallower Shelf Margin Deltaic horizon, which
management believes contains a Contingent Resource of 2.6 billion barrels Oil
in Place and 404 million barrels recoverable resource;

ii.     To commence a long-term production test of the primary objective
Alkaid horizon, which the independent expert engineering firm Lee Keeling
& Associates estimates to contain 76.5 million barrels of oil Contingent
Resources (recoverable); and

iii.    To evaluate the extent of the oil column within the Alkaid horizon
immediately below the total depth at Alkaid #1. Alkaid #1 was terminated
within the oil zone due to flooding of the Dalton Highway at the time. Based
on seismic and other analytical analysis, the Company believes the Alkaid
horizon's oil zone is substantially thicker than reported to date, offering
the potential for additional resource growth.

 

 

The Alkaid #2 well is a step out from the Alkaid #1 discovery well, which was
drilled as a vertical test well and flow tested 108 barrels of oil per day
through a six foot perforated interval. Alkaid #2 will be drilled horizontally
to maximise flow rates and is expected to substantially exceed those seen at
Alkaid #1. This will be discussed further in the Company's Investor
Presentation broadcast at 5:00 pm BST (British Summer Time) today, details are
provided below.

 

Approval of Plan of Operations

 

In addition to securing the rig contract, Pantheon has received Plan of
Operations approval from the State of Alaska, Department of Natural Resources
on the Alkaid projects. Along with permits from the Corps of Engineers and the
North Slope Borough, all necessary permits and authorizations to begin
construction of the Alkaid #2 gravel pad and driveway(s) have now been secured
and earthwork operations are expected to commence imminently.

 

Investor Presentation on Modelling Horizontal Well Performance

Monday 16 May at 5:00 pm BST

 

Following Pantheon's recent technical webinar, the Company has decided to give
an Investor Presentation to provide greater detail on the modelling of
production performance scaling from vertical to horizontal wells. The Company
will broadcast a short presentation at 5:00 pm BST today. A recording will
be uploaded to the Pantheon website once available.

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

 

https://www.share-talk.com/pantheon-resources-aim-panr-modelling-performance-from-vertical-to-horizontal-wells-may-2022/
(https://www.share-talk.com/pantheon-resources-aim-panr-modelling-performance-from-vertical-to-horizontal-wells-may-2022/)

 

Joining the management team are Michael Duncan, VP of Operations, and Ed
Duncan, Consultant Geologist. The presentation will provide insight into
Pantheon's reservoir data, including permeability and porosities, and
methodology for modelling horizontal well performance. This analysis follows
the successful drilling and testing operations at Theta West and Talitha #A
which concluded in March 2022.

On the Alaska North Slope, exploration and appraisal wells are typically
drilled vertically given their primary objective is to obtain data to help
analyse, understand and define the resource and future development potential.
Production wells are drilled horizontally, designed to maximise target
reservoir contact and therefore potential production volumes.

 

A copy of the PowerPoint presentation will be uploaded to Pantheon's website
at  www.pantheonresources.com (http://www.pantheonresources.com/)  shortly
beforehand.

 

Jay Cheatham, CEO of Pantheon Resources, commented, "Following our successful
winter season, we are moving ahead by securing the rig and necessary permits
for the construction of the pad at Alkaid #2 planned for this summer. We are
on track to spud in July, allowing Pantheon to commence a long-term production
test and, importantly, begin generating revenue for the Company, as well as
conducting potentially impactful appraisals of the Shelf Margin Deltaic and
the deeper portion of the Alkaid horizon.

 

"I also look forward to speaking virtually with shareholders at today's short
investor presentation. After our 2.5 hour webinar a few weeks ago, we're
pleased to again give shareholders more technical information on this
exceptional project portfolio."

 

Bob Rosenthal, Technical Director, commented, "Following the reported flow
rates in certain horizons tested in the vertical Theta West and Talitha test
wells, we are pleased to share with investors our approach to modelling
possible horizontal outcomes. This analysis is extremely important given our
100% working interest Theta West, Talitha and Greater Alkaid projects are
estimated by management to contain over 23 billion barrels of Oil in Place and
over 2.3 billion barrels of recoverable resource in those horizons that flowed
oil."

 

- ENDS -

 

Further information:

 

 Pantheon Resources plc                                             +44 20 7484 5361
 Jay Cheatham, CEO
 Justin Hondris, Director, Finance and Corporate Development

 Canaccord Genuity plc (Nominated Adviser and broker)
 Henry Fitzgerald-O'Connor, James Asensio, Gordon Hamilton          +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 and gas company focused on
several large projects located on the North Slope of Alaska ("ANS"),
onshore USA where it has a 100% working interest in 153,000 highly
prospective acres with over 23 billion barrels estimated oil in place and over
2 billion barrels of oil recoverable. A major differentiator to other ANS
projects is its close proximity to transport and pipeline infrastructure which
offers a significant competitive advantage to Pantheon, allowing for
materially lower capital costs and far more rapid development times. 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.

 

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

 

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.

 

 

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.

 

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