Pantheon Resources plc Regulatory News (PANR)

23 January, 2020

Pantheon Resources plc

Resource Update

Pantheon Resources plc ("Pantheon" or "the Company"), the AIM-quoted oil and gas exploration company with several conventional projects onshore North Slope of Alaska and onshore East Texas is pleased to provide shareholders with the following update:

Alaskan Update - Contingent Resource Confirmation

Pantheon confirms receipt of an Independent Expert Report and Resource Statement from the International Petroleum Consultants Lee Keeling & Associates, Inc. ("LKA"), on its 100% owned 'Greater Alkaid' Project (formerly referred to as 'Alkaid/Phecda'). LKA has great expertise in horizontal multistage reservoir development.

The report confirms a Contingent Resource of 76.5 Million Barrels of Recoverable Oil.

Definitions referred to in this announcement for Contingent Resource and Prospective Resource have been prepared under the Society of Petroleum Engineers ("SPE") standards.

Highlights:

⇨ 76.5 Million Barrels of Oil ("MMBO") Contingent Resource (recoverable)

⇨ $595 million NPV10 based on modelled 44 wells, and c.70 MMBO (1) Phase 1 field development over a 20 year term at an oil price of $55 held flat

⇨ $8.50 NPV10 per barrel of oil

⇨ Field peak flow rate 30,000 Barrels of oil per day ("BOPD")

⇨ Individual well EUR (estimated ultimate recovery) of 2.25 MMBO per well for 24 wells

⇨ The LKA report supports the Company view that Alkaid and Phecda is one continuous accumulation. Now called "Greater Alkaid"

⇨ Located underneath and adjacent to the Dalton Highway & Trans-Alaska Pipeline (TAPS)

⇨ This estimate comprises Contingent Resource only - does not include Prospective Resource

In addition to providing a Contingent Resource estimate of 76.5 million barrels of oil, LKA modelled a Phase 1 field development, based upon 24 wells at 2.25 MMBO per well, and a further 20 wells with the EUR risked at 50%, equating to 1.125 MMBO per well. Their 20-year model estimates an NPV10 of $595 million after production of 70 MMBO, with an estimated NPV10 of $8.50 per barrel of oil. Modelled peak field flow rates are 30,000 BOPD.  Greater Alkaid's beneficial location immediately underneath and adjacent to road and pipeline infrastructure offers significant time and cost advantages over other projects on the North Slope of Alaska. Having a large onshore oilfield in this location will allow a phased development approach minimising upfront capex and producing early cashflow to fund future development.

Talitha Project - update

In September 2019 the Company advised that it had made material advancements in its understanding of the Talitha Appraisal (Brookian) and Talitha exploration (Kuparuk) projects following detailed analysis undertaken in conjunction with the experts at eSeis. This work has continued to advance the understanding of the geology which the Directors believe has the potential to lead to an increase in estimates for oil in place and recoverable resource at Talitha in due course. Once the Company has completed its internal analysis, it will likely engage LKA to complete a Resource Assessment of Talitha. As analysis is not yet complete, there can be no certainty of an increase.

Farmout update

The farmout process remains underway with a number of groups having entered the data room and with a number of others having expressed interest in entering the data room in the future.

Investor presentation and Q&A session

The board is also pleased to confirm that it will be hosting a presentation and Q&A session which will be open to all investors from 9.30am - 11.00am GMT on Thursday, 30th January, 2020 at the offices of Bryan Cave Leighton Paisner (BCLP), Adelaide House, London Bridge, London, EC4R 9HA. The Company presentation will be made by Bob Rosenthal, Technical Director & Chief Geologist, Jay Cheatham, CEO, and Justin Hondris, Director, Finance and Corporate Development.

The presentation will cover, amongst other topics, the results of the independent experts report and Contingent Resource statement announced today; an overview of the important strategic acreage acquisitions (hereafter referred to as the 'Theta West' and 'Leonis' projects) announced in December 2019; the continued progress at Talitha; and a discussion of the high level strategic overview of the Company's Alaskan projects presently underway.

A copy of the presentation will be made available on the Company website following the event.

Publication of Audited Financial Results for the year ended 30 June 2019

Following receipt overnight of the Contingent Resource Statement, the directors are targeting publication of the financial results for the year ended 30 June 2019 and a resumption of trading in the Companies Ordinary Shares on AIM by mid-February, 2020.

Bob Rosenthal, Technical Director, commented:

"Today's announcement is an important milestone for the Company in that it has endorsed our long-held belief that Greater Alkaid is a material and valuable asset of the company. Since the successful production test in 2019, our team has progressed the evaluation of Alkaid to its current level of certified resources in what should be a highly profitable project. Its unique location virtually under the pipeline, and better than expected reservoir properties, provide increasing confidence of its development as another Alaska oilfield in this prolific province. I look forward to meeting shareholders in person next week to showcase the great progress that we have made."

Jay Cheatham, CEO, commented:

"The report by LKA is a fantastic result for Pantheon and underpins management's belief that we have a major discovery in Alaska along the Dalton Highway and Trans Alaska Pipeline. Greater Alkaid has the potential to offer tremendous economic returns, estimated in the report at NPV10 of $595 million for Phase 1 and an NPV10 of $8.50 per barrel of oil. I remind shareholders that a Contingent Resource (recoverable) is a higher classification of resource compared to the Prospective or 'Technically Recoverable Resource' previously provided by the Company, so 76.5 million barrels of Contingent Resource is something we are very proud of.

"I am confident that with additional drilling our Contingent Resources could increase. I am reminded of Prudhoe Bay where the ultimate recovery (EUR) has over time greatly exceeded original estimates of oil in place (OOIP) for the field. Good oil fields get bigger and better over time.

"The Independent Experts Report will enhance our farmout efforts and bodes well for our other projects where we also intend to undertake an in depth and independent assessment. This is the first time Pantheon has undertaken an independent expert report and is planning to provide other such reports in the future."

-ENDS-

 Further information:

Blytheweigh +44 20 7138 3204

Tim Blythe

Megan Ray

Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas exploration and production company with assets in East Texas and on the North Slope of Alaska, onshore USA.

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 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 an order of magnitude below that of offshore wells.

In East Texas, Pantheon has working interests in several conventional prospects in Tyler & Polk Counties, in an area of abundant regional infrastructure, and in proximity to the prized Double A Wells Field. Pantheon has the ability for this working interest position to increase to 100% should the minority partner not be in a position to meet its pro rata share of future drilling and operating costs.

In Alaska, following its acquisition of the assets of Great Bear Petroleum in January 2019, Pantheon holds working interests ranging between 90% and 100% of projects covering c.200,000 gross acres and covered by c.1,000 square miles of 3D seismic.

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) is incorporated into, or forms part of, this announcement.

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.

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. The announcement contains estimates of possible valuations based on certain assumptions based upon information available at the time of writing and relating to a future period and, accordingly, they are not guaranteed and are subject to change. Estimates and assumptions underlying any such valuations are inherently uncertain, are based on events that have not taken place and are subject to economic, competitive and other uncertainties and contingencies beyond the Company's control.