REG - Pantheon Resources - Webinar and update

Pantheon ResourcesAnnouncement

14/09/2023 15:45

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RNS Number : 5040M  Pantheon Resources PLC  14 September 2023

14 September 2023

Pantheon Resources plc

Webinar and update

 

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. 193,000 acres adjacent and near to transportation and pipeline
infrastructure on the Alaskan North Slope, confirms that as previously
announced, a webinar presentation and Q&A will be held at 5.00pm British
Summer Time today and is open to all shareholders and other interested
parties. Registration details can be accessed at:
https://www.investormeetcompany.com/pantheon-resources-plc/register-investor
(https://www.investormeetcompany.com/pantheon-resources-plc/register-investor)
.

A copy of the PowerPoint presentation to be delivered during the Webinar and a
recording of the webinar will be uploaded to the Company's website
at https://www.pantheonresources.com/ (https://www.pantheonresources.com/)
 once available.

About the Webinar

In this Webinar, the management team will provide further context on the
Independent Expert Report by Netherland, Sewell & Associates ("NSAI"), the
basis of future appraisal opportunities and an update on the Shelf Margin
Deltaic ("SMD") test in Alkaid-2, together with a detailed Q&A
session. The presentation will address the following, including certain
updated information:

1.    NSAI Report Summary and Appraisal Upside

2.    Reservoir and Fluids Characterization

3.    SMD test in Alkaid-2

4.    Future development planning work

5.    Contingencies on Permitting and Offtake

6.    Update on Strategy Implementation

7.    Q&A

 

Kodiak Field Contingent Resource Estimates

As previously announced, NSAI reported on its estimate of Contingent
Recoverable Resources, shown below:

                      Gross (100%) Contingent Resources
 Resource Category    Oil                NGLs               Total              Residual Gas

                      (million bbls)     (million bbls)     (million bbls)     (bcf)
 Low Estimate (1C)    145.4              292.4              437.8              2,151.7
 Best Estimate (2C)   314.6              647.9              962.5              4,465.2
 High Estimate (3C)   647.8              1,366.4            2,014.2            8,822.7

NSAI has begun preparing a similar Independent Experts Report on the Alkaid
horizon at the Ahpun project, with expected completion in Q4 2023 / Q1 2024
and with a report on the Shelf Margin Deltaic horizons to follow thereafter.

Upside Potential from Further Appraisal of Kodiak

Assessing a field as large as Kodiak requires integration of the proprietary
3-D seismic data set with core and logging data. This involves extrapolation
of a limited number of well locations, used to calibrate the seismic
attributes. The data from the Talitha-A well was the most complete and
granular. It will, therefore, heavily influence any analysis of the Kodiak
Field resources. In that well, the Company obtained a full suite of data,
including volatiles analysis (VAS), logging while drilling (LWD) logs, a
standard suite of electric wireline logs, a Formation Microresistivity Imaging
(FMI) log, which provides centimetre scale resolution, sidewall cores and a
flow test.

The figure below shows the resolution of the FMI log, highlighting the
potential to understand the reservoir at centimetre scale:

 

The Theta West-1 well was drilled some 10.5 miles from Talitha-A, encountering
the formation over 1,000 feet updip and the pay section was approximately 50%
thicker at that location, both as predicted. Testing confirmed producible,
high-quality oil from the Lower Basin Floor Fan reservoir. Furthermore, the
geological model had predicted reservoir quality improvement at Theta West-1
compared with Talitha-A, which was confirmed by the LWD logs. However, these
tools do not provide the same resolution - metre vs centimetre scale - as
available from Talitha-A FMI logs or analysis of the whole core gathered in
the Pipeline State 1 well.

Pantheon's analysis of the regional trends in maximum depth of burial of the
reservoir (Dmax) and its impact on porosity and permeability indicates the
potential for significant improvement in reservoir quality some 5 miles
northwest of Theta West-1.  The Company expects, based on petrophysical
analysis, a Kodiak appraisal well in that location to demonstrate even better
reservoir qualities with 37 - 51% of the pay in the reservoir interval
exhibiting porosities at or above 12% and permeabilities of greater than 0.1
milliDarcies - the typical cut-off for conventional reservoirs. This compares
to 5% of conventional pay at Talitha-A and 24% at Theta West-1.

The smoothing effect of the LWD log when compared to the FMI log results in
averaging rock properties over the reservoir interval such that the quality of
the best and worst reservoir properties is averaged. This does not have a
significant impact on the assessment of hydrocarbons in place but has an
impact on likely recovery factors and well production performance. The Company
plans to cut full cores and acquire a full suite of wireline logs and
representative fluid samples/flow tests in future Kodiak appraisal wells to
address the contingencies in NSAI's evaluation and to allow recognition of
larger expected ultimate recoverable resources.

Roger Young at eSeis has created a laminated porosity model and conducted an
evaluation of the potential improvements in reservoir quality across the
Kodiak Field. While porosity impacts in place volumes in a linear fashion, its
correlation with permeability is logarithmic. The eSeis analysis indicates
potential for porosities as high as 15-20% in some of the most advantaged
locations updip. This would be consistent with permeabilities as high as 0.5
mD and would significantly improve recovery factors updip at a Theta West-2
appraisal well location.

Reservoir and Fluids Characterization

GeoMark and SLB completed their analysis of the reservoir fluid composition in
the Alkaid-2 location. This suggested that approximately one third of the
hydrocarbon pore space contains free gas, while two thirds contains liquids
with dissolved gas. Their analysis supports a gas oil ratio (GOR) in the 2,000
- 3,000 scf/stb range, consistent with the Company's development planning and
economic modelling.

SLB has now commenced Ahpun full field planning studies and expects to
complete this exercise during Q2 2024. The full field model will include an
assessment of the economics of the proposed development.

Update on Alkaid-2 SMD Test

The Company expects mobilization of the All-American Oil Rig 111 during the
last week of September. SLB will perform a frac based on the updated design.
The goals for the operation are to demonstrate the anticipated improvement in
frac efficiency from the updated design, to gather the highest quality fluid
data possible and determine original reservoir pressure. This will be a single
stage frac, intended to achieve sufficient flow for the goals rather than
provide a headline rate.

Further information:

 

Pantheon Resources plc

Jay Cheatham, CEO

David Hobbs, Executive
Chairman
+44 20 7484 5361

Justin Hondris, Director, Finance and Corporate Development

 

Canaccord Genuity Limited (Nominated Adviser and broker)

Henry Fitzgerald-O'Connor, Gordon
Hamilton
+44 20 7523 8000

 

BlytheRay

Tim Blythe, Megan Ray, Matthew
Bowld
+44 20 7138 3204

 

 

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 nearly 40 years' relevant
experience within the sector.

The estimates in the Kodiak NSAI IER have been prepared in accordance with
definitions and guidelines set forth in the 2018 Petroleum Resource Management
System (PRMS) approved by the Society of Petroleum Engineers (SPE).

 

 

 

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 has a 100% working interest in
193,000 acres. Management estimates these fields to produce Expected Ultimate
Recovery of contingent resources amounting to some 2 billion barrels of
marketable liquids to be delivered through the 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 preparation of an Independent Expert Report
for the Ahpun Field.

 

Glossary

Bbls: barrels

 

Bcf: Billion cubic feet

 

Contingent Resource: Those quantities of petroleum estimated, as of a given
date, to be potentially recoverable from known accumulations by application of
development projects, but which are not currently considered to be
commercially recoverable owing to one or more contingencies.

 

For Contingent Resources, the general cumulative terms low/best/high estimates
are used to estimate the resulting 1C/2C/3C quantities, respectively. The
terms C1, C2, and C3 are defined for incremental quantities of Contingent
Resources:

A.   C1: Denotes low estimate of Contingent Resources. C1 is equal to 1C.

B.   C2: Denotes Contingent Resources of same technical confidence as
Probable, but not commercially matured to Reserves.

C.    C3: Denotes Contingent Resources of same technical confidence as
Possible, but not commercially matured to Reserves.

 

mD: MilliDarcies

 

NGLs: Natural gas liquids (NGL) are components of natural gas that are
separated from the gas state in the form of liquids.

 

Scf: Standard Cubic Foot

 

Stb: Stock Tank Barrel

 

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