RE: New Leases (Aphun)4 Jan 2024 14:28
Dec 14
Pantheon has been awarded 66,240 acres on the North Slope covering:
Β· substantially all of the anticipated remaining conventional reservoir potential in the Kodiak Field - pay zone quality is expected to improve as the reservoir become shallower to the north and west of the existing leases. The ultimate resource classification of the 43,200 new acres will be determined following reviews with Netherland, Sewell & Associates, Inc. ("NSAI") and SLB.
Β· the potential eastern extent of the Ahpun Field (including what is prognosed to be higher quality, shallower reservoirs) covered by the 23,040 acres that could be accessed from the West side of the Sag River using current technologies. The Company believes these volumes would initially meet the definition of Prospective Resources and only be recognisable as Contingent Resources (and eventually Reserves) once well penetrations have confirmed producible hydrocarbons in the identified Shelf Margin horizons.
Pantheon's winning bids averaged $31.83 per acre including fees. When the leases are officially awarded by the State of Alaska, estimated to be in 4 to 6 months' time, they will come with a 10-year initial term, an annual rental of $10 per acre, and royalty rates of 16.67% (20 leases, 28,800 acres) and 12.5% (26 leases, 37,440 acres). The Company has paid an initial deposit to the State of Alaska equivalent to 20% of the bid costs with the remainder payable on official award along with the first year rentals.