Last checked at 16 Jul 2021 07:00
16 July 2021
Pantheon Resources plc
Management Resource Upgrade - Shelf Margin Deltaic & Upcoming Webinar Details
Pantheon Resources plc ("Pantheon" or the "Company"), the AIM-quoted oil and gas Company with a 100% working interest in projects spanning c.160,000 acres, covered by 1,000 square miles of 3D seismic, advantageously located adjacent to transportation and pipeline infrastructure on the Alaska North Slope, is pleased to provide the following management resource upgrade on its Shelf Margin Deltaic ("SMD") sequence as well as to provide details of an upcoming investor webinar.
Resource Upgrade - Shelf Margin Deltaic
Pantheon is pleased to report that it has now completed its internal analysis of the SMD-B sequence encountered in the Talitha #A well. The SMD is the shallowest of five discrete oil bearing intervals encountered in that well. The SMD interval itself is comprised of three individual components: the SMD-A, the SMD-B and the SMD-C. The excellent quality data obtained in Talitha #A has allowed Pantheon to integrate well log response and core data with seismic petrophysics to more accurately map this interval.
Pantheon has completed its analysis of the SMD-B zone, one of the three zones within the SMD, and estimates that this zone has the potential to contain 2.6 billion barrels oil in place ("OIP") and a P50 Contingent Resource (recoverable) of 404 million barrels oil ("mmbo"). The Company's previous management estimate for the SMD was an OIP of 1.8 billion barrels and a P50 Prospective Resource of 483 mmbo across all three of its zones combined, of which approximately 265 mmbo were attributable to the SMD-B zone; being the zone subject to today's resource upgrade.
Analysis is not yet complete on the SMD-A and SMD-C zones, although as previously reported it is anticipated that the SMD-A will experience a reduction, whereas the SMD-C is broadly in line with previous analysis. When considered as a whole, management believe the resource potential of the SMD has been upgraded substantially.
Today's resource upgrade is significant in that it is both (a) materially larger in size, and (b) management believe meets the higher resource classification of 'Contingent Resource', than the previous 'Prospective Resource'. This also compares favourably to the previous Independent Experts estimate in September 2020 of 302 mmbo Prospective Recoverable Resource across all three zones of the SMD.
The geographic location of Pantheon's leases has a significant economic advantage because they can be developed from the Dalton Highway, materially reducing development costs and accelerating the time to first production and revenues. This offers Pantheon a major competitive advantage in expediting development and production compared to other operators on the North Slope of Alaska.
Farmout Discussions
Pantheon confirms that discussions have commenced with a number of groups for the purpose of seeking the farmout of a working interest percentage in one or more of the Company's Alaskan projects. Pantheon's objective is to complete a farmout or funding in Q4 in order to provide sufficient capital for future drilling, testing and working capital. The Company's objective for winter 2021/22 is for an active work programme to test all zones of the Talitha #A well and to drill at least one other well at either Alkaid or Theta West. An Alkaid development well has the benefit of being able to be hooked up to production to generate revenues shortly after completion, and a Theta West well has the attraction of testing a globally significant play which offers tremendous potential for value creation.
Investor Webinar
Pantheon management is pleased to announce that it will be hosting an investor presentation over the next few weeks, open to all shareholders and interested parties. The webinar will discuss the significance of the Talitha #A well result and the resultant management resource upgrades at both Theta West and the SMD. Details for the webinar will be provided in due course.
Pantheon management will be joined by a special guest, Mr Mike Smith, President and founder of AHS (Advanced Hydrocarbon Stratigraphy), to discuss the significance to Pantheon of the Baker Hughes AHS Volatiles Analysis Service ("VAS"), invented and supplied by AHS, which was used successfully on the Talitha #A well.
Pantheon is also pleased to announce that Mr Roger Young, Chief Technology Officer for eSeis, and Dr Edward Duncan, Senior Geoscience Consultant and Founder of Great Bear, and Michael Duncan, Vice President of Engineering and operations will also make part of the technical presentation.
Bob Rosenthal, Technical Director, said:
"Our technical team is very excited about what we have discovered and our intended operational activities for this upcoming winter season. The discovered oil in the SMD, which we can now identify across five separate wellbore penetrations in the area, increases our confidence in the potential size and quality of this resource. All the data and technical analysis to date point to a consistent result in terms of the size of the discovery. The geographic location adjoining the highway and export infrastructure also allows for numerous low cost development options with reduced environmental considerations and shorter timeframes."
Jay Cheatham, CEO, said:
"As mentioned previously, the Talitha #A well delivered excellent exploration results that have given us an opportunity to prove up a multi billion barrel oil accumulation with the potential to be one of the largest conventional onshore oil discoveries made in North America. Today's news is another important step, with the SMD resource upgrade following the 1.4 billion barrel resource estimate on the Theta West/Basin Floor Fan earlier this year. It is also worth remembering that the resource potential of the Kuparuk and the Slope Fan System is yet to be reported. The analysis to date is very encouraging, as is the strong oil price outlook which has resulted in greater interest in the sector from corporates, investors and industry players alike."
-Ends-
Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.
Further information:
Pantheon Resources plc | +44 20 7484 5361 |
Jay Cheatham, CEO |
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Justin Hondris, Director, Finance and Corporate Development |
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Canaccord Genuity plc (Nominated Adviser and broker) |
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Henry Fitzgerald-O'Connor, James Asensio | +44 20 7523 8000 |
Blytheweigh |
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Tim Blythe, Megan Ray, Alice Mclaren, Madeleine Gordon-Foxwell | +44 20 7138 3204 |
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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 Jay Cheatham, a qualified Chemical & Petroleum Engineer, who has over 40 years' relevant experience within the sector.
The Resource estimates has been reported in accordance with SPE standards.
Glossary
P50
| There should be at least a 50% probability (P50) that the quantities actually recovered will equal or exceed the best estimate |
Contingent Recoverable Resource
| Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, by the application of development project(s) not currently considered to be commercial owing to one or more contingencies. Contingent Resources have an associated chance of development. Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality. Contingent Resources are further categorized in accordance with the range of uncertainty associated with the estimates and should be sub- classified based on project maturity and/or economic status
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Prospective Recoverable Resource
| Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by applying future development projects. Prospective Resources have both an associated Chance of Discovery and a Chance of Development
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MMBO
| Millon Barrels of Oil |
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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 over 160,000 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.
The Company has received Independent Expert Reports certifying a Contingent Resource of 76.5MMBO (million barrels of oil) recoverable on its Greater Alkaid project and management have estimated Contingent Resources of 1.4 billion barrels of oil at Theta West and 404 million barrels of oil in the Shelf Margin Deltaic horizon.
Information contained within this RNS is considered to be inside information prior to its announcement. For further information on Pantheon Resources plc, see the website at: www.pantheonresources.com. The information contained within this RNS is considered to be inside information prior to its release. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) incorporated into, or forms part of, this announcement.