REG - Pantheon Resources - Spudding of Megrez-1 well

Pantheon ResourcesAnnouncement

11/11/2024 07:00

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RNS Number : 6502L  Pantheon Resources PLC  11 November 2024

11 November 2024

 

 

 

Pantheon Resources plc

Spudding of Megrez-1 well

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, today announces the spudding of the Megrez-1 well to explore the
eastern topsets in the Ahpun field, immediately adjacent to pipeline and road
infrastructure.

The reservoir sections to be targeted are both younger and shallower than in
any of Pantheon's previous Alaskan wells, with superior reservoir
characteristics predicted. The Megrez-1 well will target three topset
horizons, which the Company estimates to contain an aggregate 2U Prospective
Resource of 609 million barrels of ANS Crude (oil, condensate & NGLs) and
3.3 trillion cubic feet ("Tcf") of natural gas. Initial results from the well
will be announced when drilling operations are complete.

Pantheon contracted the Nabors 105AC rig, which the Company is familiar with
having used it in previous drilling campaigns, to drill the Megrez-1 well.
Construction of the gravel pad next to the Dalton Highway was completed in
October, and the pad can be used year-round to support future drilling and
development activities.

President-elect Trump address to Alaska

Pantheon was greatly encouraged by the supportive words made by the
President-elect and the Governor of Alaska last week with respect to their
intentions for progressing the proposed Alaska natural gas pipeline (Phase 1
of the Alaska LNG project). A copy of Mr Trump's speech can be found at:
https://www.facebook.com/GovDunleavy/videos/president-trump-addresses-alaska/514641971572044/
(https://www.facebook.com/GovDunleavy/videos/president-trump-addresses-alaska/514641971572044/)

 

David Hobbs, Executive Chairman of Pantheon Resources, said: "A success at
Megrez-1 will expand the understanding of Ahpun oil and gas accumulations and
dramatically impact the economics of the Ahpun full field development. There
are few, if any, onshore wells targeting what we estimate to be more than 1
billion boe (barrels of oil equivalent) of 2U Prospective Resource anywhere in
the world during this year. We believe the target reservoir sections should
exhibit at least an order of magnitude better permeability than Ahpun's
western topsets which were logged and cored in the Pipeline State-1 well on
Pantheon's acreage. In a success case, the 609 million barrels of ANS crude
immediately adjacent to the Trans-Alaska Pipeline would yield a very high
NPV/barrel and the 3.3 Tcf would significantly enhance Pantheon's gas resource
base into its proposed gas project with Alaska Gasline Development
Corporation.

"While the outcome of the Megrez-1 well will not impact our already certified
1.6 billion barrels of contingent resources, success here would be material to
our Ahpun development plans for both ANS crude and gas. I look forward to
reporting on progress once drilling is complete."

 

 

For further information, please contact:

 

UK Corporate and Investor Relations Contact
Pantheon Resources plc

Justin Hondris

+44 20 7484 5361
contact@pantheonresources.com (mailto:contact@pantheonresources.com)

 

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

 

U.S. Investor Relations Contact

MZ Group

Lucas Zimmerman, Ian Scargill

+1 949 259 4987
PTHRF@mzgroup.us (mailto:PTHRF@mzgroup.us)

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) .

Glossary

Boe        Barrel of oil equivalent,  is a term used to summarize the
amount of energy that is equivalent to the amount of energy found in a barrel
of crude oil (https://www.investopedia.com/terms/c/crude-oil.asp) . One
barrel of oil is generally deemed to have the same amount of energy content as
6,000 cubic feet of natural gas. So this quantity of natural gas is
"equivalent" to one barrel of oil

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