REG - Pantheon Resources - Shareholder Letter and Corporate Update on Dubhe-1

Pantheon ResourcesAnnouncement

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RNS Number : 4106M  Pantheon Resources PLC  22 December 2025

Pantheon Resources Issues Shareholder Letter and Provides Corporate Update on
Dubhe-1

LONDON, GB - December 22, 2025 - Pantheon Resources plc (AIM:PANR)
(OTCQX:PTHRF) ("Pantheon" or the "Company"), the oil and gas company
developing the Kodiak and Ahpun oil fields near pipeline and transportation
infrastructure on Alaska's North Slope, today issued a letter to shareholders
from Pantheon Chairman David Hobbs.

Dear Shareholders,

As we move into 2026, I would like to thank our shareholders for their
continued support, provide a recap of the milestones achieved, and discuss
where we are headed in the year to come. Throughout 2025 we continued our work
developing what we believe is America's next great oilfield on the Alaska
North Slope with billions of barrels of resources, including accelerated
appraisal efforts, and new leadership and capital to lead us forward.

During the year, we undertook the Dubhe-1 development demonstration to advance
a capital efficient path toward commercialisation. While Dubhe-1 has not yet
delivered the production outcome sought, the well generated valuable technical
data and confirmed the presence of mobile hydrocarbons. Given the cost profile
of winter operations and our focus on disciplined capital allocation, we have
elected to pause testing at this time, a decision reflecting prudent financial
management rather than diminished confidence in the asset. Supported by the
capital raised during the year, Pantheon enters 2026 in a strong financial
position, with flexibility to resume testing in the spring, assess additional
interventions, and apply the insights gained to future development planning
and farm-out discussions. The learnings from Dubhe-1 directly support our
continued focus on advancing Kodiak, which remains the cornerstone of our
portfolio and the primary driver of long-term shareholder value. As a
reminder, Pantheon is leveraging distinct advantages with assets that are 100%
located on state lands, adjacent to the Trans-Alaskan Pipeline (TAPS) and
Dalton Highway, reducing development timeframe and cost with no expected
environmental concerns. With a portfolio of high-impact oil projects spanning
a 100% working interest across 258,000 acres, we currently hold independently
certified best estimate contingent recoverable resources that currently total
c. 1.6 billion barrels of ANS crude and 6.6 Tcf of associated natural gas
across our properties. We continue to believe we are well positioned to
develop our high impact U.S. oil projects on the Alaska North Slope.

Our commercial strategy established in 2023 was resource led and capital
disciplined, focused on achieving sustainable market recognition exceeding $5
per barrel of independently certified 1P and 1C recoverable liquids. Kodiak
represents a world class asset that anchors the portfolio, while Ahpun and
other discovered resources provide nearer term development optionality due to
their proximity to existing roads and pipelines. This infrastructure advantage
materially reduces development costs and timelines, allowing activity to
progress westward from existing infrastructure in a phased, capital efficient
manner. We intend to prioritise projects capable of generating early free cash
flow to support self-funded growth, minimising shareholder dilution while
advancing Kodiak toward full development.

Evolving Leadership Team

Earlier this year we appointed Max Easley as Chief Executive Officer, bringing
decades of appraisal and development experience in the oil and gas industry
from firms such as BP, Apache and PETRONAS, with specific experience on
Alaska's North Slope.  The mandate from the Board was to assess the quality
of the assets with a view toward acceleration of development to maximise
shareholder value.

We also welcomed Tralisa Maraj as Chief Financial Officer and Erich
Krumanocker as Chief Development Officer. Tralisa has successfully led
Pantheon's Finance team and recent financings with her more than 25 years of
experience, including having previously been the CFO of two publicly listed
companies. Erich has brought with him over 25 years of global experience in
driving development, operations and project execution at scale across multiple
continents.

Finally, Marty Rutherford joined us as a member of the Board of Directors, and
we are benefiting from her more than 40 years of experience in policy roles,
particularly her time in the State of Alaksa Department of Natural Resources
shepherding Alaska's vast resources.

Dubhe-1 Operational Update

During the past 12 months, the Company took steps to re-align the management
team to meet the challenges of more detailed reservoir appraisal and
development planning.  This effort led to the decision to flow test the
Ahpun reservoir in the South via this development demonstration well to
determine the validity of foundational assumptions in the 2023 strategy. This
is important because Ahpun is the key enabler in our 2023 strategy having
successfully tested oil at Alkaid-2 in the North. Furthermore, hydrocarbon pay
has been penetrated and logged at Pipeline State #1 and Talitha-A, all being
located near key infrastructure. Ahpun has the potential for a capital
efficient development and forward financing via free cash flow generation for
Kodiak and other discovered resources.

 

The specific location of Dubhe-1 was chosen to balance the ability to reach it
from a permanent surface location and test the lateral continuity of the
reservoir. The targeted interval (SMD-B) had been penetrated multiple times
and a pilot hole was drilled in advance of the lateral to ensure logged oil
pay was present. The execution of Dubhe-1 represented a significant
improvement in operating quality in a more capital efficient manner than
previous wells.

 

The well has now been cleaning up for nearly two months, during which time
approximately 100,000 barrels of water, 20 million cubic feet of gas and 100
barrels of oil have been produced. ~200,000 barrels of stimulation fluids were
injected into the well during the stimulation procedures, so ~50% has been
recovered to date. The results to date suggest higher and/or more mobile water
saturations than indicated in the historical and recent appraisal efforts. It
is still too early to know whether this may be the result of the water
introduced during the stimulation or be indicative of reservoir conditions. A
longer flowback period, additional interventions and analyses may be required
to better understand the reservoir mechanisms.

 

There are no specific regional analogs for this reservoir fracture stimulated
with a multitude of stages. But based on a number of consultation with
industry peers, there is a wide range of possibilities and there are other
conventional reservoirs of our type being commercially developed around the
world that we believe have produced up to 100% of the injected stimulation
fluids, and even beyond, prior to commercial quantities of oil. Whilst the
SMD-B horizon at Alkaid-2 began to produce oil when approximately 50% of the
injected stimulation fluids had been recovered, this outcome can vary widely
amongst wells even in the same reservoir interval.  What is clear is that we
have mobile hydrocarbons in this reservoir. Dubhe-1 has still recovered only
~50% of the stimulation fluids so far and based on analogs above we believe
further cleanup is required before we can determine the commerciality of the
well.

 

We believe the most financially prudent course of action is to pause testing
in order to complete a planned pressure build-up test and other reservoir
diagnostics on the well. In the meantime, we will reassess our operating cost
base as winter flowback operations currently cost ~$150,000 per day. Given
this, we will continue to evaluate data gathered from Dubhe-1 including
analysis of the core and plan for testing and possible interventions and
production re-start in the spring when we can ensure a more cost-effective way
forward. Parallel analysis of the Kodiak field will be undertaken and an
appraisal programme developed to accelerate progress irrespective of any
outcome on this well.

 

While the results to date are not yet conclusive, ongoing analysis will help
refine our strategy and strengthen our path to commercialisation, as well as
confirm our approach of prioritising capital efficiency and technical rigor to
maximise shareholder returns. This includes optimisation of stimulation,
artificial lift techniques and a multitude of other factors.  We will build
upon this and develop a clear pathway to maximise the value implicit in our
asset base and ensure cost controls are in place, aligned to our activity set.
Given all the factors above, we look forward to resuming production testing
after the winter and will keep shareholders appraised of progress.

 

In coming months, the 2023 strategy will be tested and re-shaped by the new
management team, inclusive of an updated reservoir and development outlook.

Kodiak - A World Class Oil & Gas Field

Our Kodiak project covers approximately 170,000 acres, partially underlying
and immediately to the west of Ahpun. The field consists of a giant basin
floor fan and was described by Wood Mackenzie in March 2023 as "the fourth
biggest discovery well globally in 2022" and largest onshore. They have
subsequently listed it as one of the top 20 oil discoveries of the 21st
century. AHS Baker Hughes labelled it "a world class petroleum system" in
summer of 2022.

 

We have successfully produced liquid hydrocarbons at both Talitha and Theta
West located some 10 miles apart within the Kodiak acreage. There is
significant volume upside to the Northwest of the area already penetrated, and
based on regional trends, the quality of the reservoir is likely to improve in
an updip location as well.  Independent experts Netherland, Sewell and
Associates' best estimate for liquid hydrocarbon contingent resources is 1,208
million barrels, with an additional upside of ~600 million barrels of oil.
Reprocessing of our seismic data will allow us to better define the top and
base of the reservoir and predict internal architecture towards the edge of
our leases and better image this upside potential. As part of this, we will
begin planning for an appraisal well, possibly as early as next winter, and
evaluating potential farm-out opportunities as they may arise.

 

We firmly believe that Kodiak is a world-class asset and is the centerpiece in
our portfolio. It is also in an excellent location that will benefit from the
infrastructure nearby. As we evaluate the most capital efficient and free cash
flow generating path toward Kodiak development, we recognise
that acceleration of its development will potentially add
enormous shareholder value and underpin sustainable cash flow for decades to
come.

Capital Resources Overview

As discussed previously, we had been making preparations for a potential
listing on a U.S. exchange, should it be deemed the best path for shareholders
in raising capital for development. To constrain expenditures, the activities
had been restricted to re-examination of the Company's financial statements,
confirming the optimum structure to avoid tax leakage, and designing internal
controls that would serve investors regardless of whether a U.S. listing was
progressed or not.  Whilst this is an option for the future, this effort
remains paused until market conditions are such that this can be progressed.

As we exit 2025 and prepare for our 2026 activities discussed above, we
believe we have benefitted greatly from our proactive management of our
financial position. At 21 December 2025, unaudited cash, cash equivalents and
term deposits totalled $27.2 million, prior to the settlement of the latest
remaining Dubhe-1 related expenditures. These were anticipated and are fully
incorporated into our capital planning assumptions. Following their
settlement, the Company will continue to manage its liquidity position
prudently, to provide flexibility to support technical work and the
advancement of priority assets.

Moving forward, we intend to prioritise the financing of forward capital
programmes by farming out to investment partner(s) to limit share dilution and
add financial and capability resources to our expansive asset portfolio.

Looking Ahead & Final Thoughts

Looking ahead, we remain confident in the value inherent to our asset base,
representing one of the largest undeveloped oil resources on the Alaskan North
Slope. In our updated 2024 Independent Expert Report by Netherland Sewell
& Associates, Inc., best estimates of Kodiak's contingent recoverable
resources sum to 1.2 billion barrels of marketable liquids and 5.4 trillion
cubic feet of gas. We are renewing focus on our Kodiak field, with a parallel
analysis and appraisal programme developed to accelerate progress - all being
done concurrent with additional testing and analysis of our data from Ahpun.

We thank you, our shareholders, for your support and we thank our employees
for helping advance our development efforts. Our Annual Report and Accounts
will be released this month with our AGM to occur in the first quarter of
2026. We therefore look forward to sharing future updates in the coming year
as we strive to create value for our shareholders, employees, and communities,
and we thank all of you for your dedication to our mission.

Sincerely,

David Hobbs

Chairman

For further information, please contact:

Corporate Contact

Pantheon Resources plc

Justin Hondris
contact@pantheonresources.com (mailto:contact@pantheonresources.com)

 

Nominated Adviser and Joint Broker

Canaccord Genuity Limited

Henry Fitzgerald-O'Connor, James Asensio, Charlie Hammond

+44 20 7523 8000

 

Oak Securities - Joint Broker

Jerry Keen, Nick Pryce

+44 20 39733678

 

Public Relations Contact
BlytheRay

Tim Blythe, Megan Ray, Matthew Bowld

+44 20 7138 3204

 

Investor Relations Contact - USA

MZ Group

Lucas Zimmerman, Ian Scargill

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

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 40 years' relevant experience
within the sector.

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").

 

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 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 approximately $5 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 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 of ANS crude and 5,396
bcf 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) .

 

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