Pantheon Resources PLC Lease Award (2591B)
01 June 2023 - 4:00PM
UK Regulatory
TIDMPANR
RNS Number : 2591B
Pantheon Resources PLC
01 June 2023
1 June, 2023
Pantheon Resources plc
Lease Award
Upcoming Webinar
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 Alaska North
Slope ("ANS"), is pleased to announce that it has formally accepted
and paid for the award by the State of Alaska Department of Natural
Resources (DNR) for the 39,540 acres that it was the successful
bidder of in last year's state lease sale. The Company awaits
formal granting of the leases from the DNR, expected in the near
term, subject to standard formalities.
25,460 acres of this award is the northern extension (the
Chimney) and updip portion of our Theta West Basin Floor Fan.
14,080 acres of the award fills in around Pantheon's Alkaid and
Talitha Units along the Dalton Highway and Trans Alaska Pipeline.
The new acreage covers an extension of the existing discoveries
which Pantheon was able to delineate off its existing proprietary
3D seismic. Whilst a full evaluation of this new acreage is
ongoing, Pantheon expects an upgrade in its resource base from this
addition of new acreage in due course. In December 2022, SLB
completed phase 1 of its Static and Dynamic reservoir model where
it ascribed 10.9 billion barrels of oil in place to the portion of
the Basin Floor Fan ("BFF") complex within Pantheon's existing
leases. The extension into this new acreage was not part of the
original SLB estimates.
The BFF resources in this additional acreage are structurally
higher, or 'updip' from the Theta West #1 discovery well. Being
structurally higher in shallower reservoir depths yields an
expected improvement in the reservoir properties because of less
compaction due to a shallower Dmax (Maximum Depth of Burial). The
expected improvement in reservoir qualities should lead to
increased recovery and better reservoir productivity. The Company
intends to test the BFF reservoir in these new leases at a depth of
approximately 6,200 feet, some 750 feet higher than where it was
discovered in Theta West #1, in the next Theta West appraisal well.
Shallower drilling targets reduce drilling costs and, combined with
expected higher productivity, should enhance the economics of any
development in this location. The Theta West #1 well demonstrated
that the Company's pre-drill expectation for the northern extent of
the accumulation was likely too conservative and hence the move to
secure the additional leases in what should prove to be the best
quality resources in this giant discovery.
SLB will incorporate these additional resources into their
models, and Netherland Sewell & Associates will incorporate
these additional resources into their assessment of Contingent
Resources on the Theta West and Alkaid projects, expected over the
summer (Theta West), autumn (Alkaid), which will represent the
first independent assessment of the recoverable resources
identified by Pantheon's appraisal programmes over the past two and
a half years.
Webinar
A webinar is scheduled for late June/early July to present an
overall plan for Pantheon and the following:
1. Discussion on Pantheon's corporate strategy to deliver
greater value out of its significant resources including a
discussion of corporate and operational initiatives.
2. Discussion on scope for potential resource upgrades
associated with this additional (new) acreage.
3. Discussion on findings from further analysis of Alkaid #2 and
the Company's assessment of ultimate recoveries based on Alkaid #2
production and potential for future wells.
4. Discussion on initiatives for improvements to operational
performance and cost control, including an introduction to recent
key hires. The discussion will include an analysis of well cost of
Alkaid #2 and steps to work towards a targeted $13 million cost per
development well.
5. Discussion on Frac design improvements based on Alkaid #2 results.
6. Discussion on data expected from the re-entry completion and
production test at the SMD horizon at Alkaid #2.
The Company will provide an update at a later date regarding the
date for the webinar.
Jay Cheatham, CEO of Pantheon Resources, said: "Pantheon will
soon have c. 193,000 acres under lease with a material resource
base in the billions of barrels. In the past we have limited our
public profile to reduce competition for offset acreage while we
acquired the current acreage position. Pantheon and its predecessor
Great Bear have made significant investments over the past decade
securing this vast acreage position, assisted through the advantage
of having sole use of c. 1,000 square miles of high quality 3D
seismic. Having now secured the desired acreage, Pantheon now
intends to increase the profile of its project geology without fear
of competition and to assist in attracting potential farm-in
partners. This process commenced last week where AHS/Baker Hughes
presented a case study using the Theta West volatiles analysis to
the Society of Petroleum Engineers (SPE) Western Regional Meeting
in Anchorage. We will also begin participating in other relevant
industry meetings to raise the profile of the assets."
-ENDS-
Further information, please contact:
Pantheon Resources plc +44 20 7484 5361
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate
Development
Canaccord Genuity Limited (Nominated Adviser
and broker)
Henry Fitzgerald-O'Connor
James Asensio
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 Robert Rosenthal,
a qualified Petroleum Geologist, who has over 40 years' relevant
experience within the sector.
Notes to Editors
Pantheon Resources plc is an AIM listed Oil & 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
193,000 highly prospective acres with potential for multi 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 much
quicker 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.
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END
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