Pantheon Res Regulatory News (PANR)

14 January, 2021

Pantheon Resources plc

Spudding of Talitha #A Well

Pantheon Resources plc ("Pantheon" or "the Company"), the AIM-quoted oil and gas exploration company with working interests of 89.2% - 100% in certain projects located adjacent to transportation and pipeline infrastructure on the Alaska North Slope, is pleased to provide the following update:

Spudding of the Talitha #A well, North Slope of Alaska, 89.2% working interest

The Talitha #A appraisal well spudded ahead of schedule on 13 January, 2021, with drilling planned to a total vertical depth of approximately 10,000 feet. The well will target the shallowest Shelf Margin Deltaic horizon as the primary objective and will also drill through a number of secondary objectives including: (i) the 'Slope Fan System', (ii) the 'Basin Floor Fan', and (iii) the 'Kuparuk' horizons.

Drilling and testing operations at Talitha #A must be completed prior to the onset of Spring when temperatures warm up and the ice road begins to thaw. Historically, the drilling season has ended near the end of March. Given the number of targeted formations, and subject to positive results, Pantheon intends to make full use of the available drilling window, undertaking drilling and testing operations as long as weather permits. As of 1730 Alaskan time on 13 January the well was drilling ahead at a depth of 225 feet. 

Talitha #A is located approximately eight miles west of the Dalton Highway and Trans Alaska Pipeline System ("TAPS") and four miles from the Pipeline State #1 well, drilled in 1988 by ARCO, and which confirmed the presence of movable hydrocarbons in the objective horizons. The close proximity to pipeline and transportation infrastructure offers Pantheon a number of material advantages over other Alaska North Slope projects, including lower capex costs and shorter project development timelines.

The Company estimates the Talitha #A well will target in the region of a billion barrels of recoverable oil potential across the multiple stacked (primary and secondary) objectives. An independent Expert's Report was completed on the updip section of the Shelf Margin Deltaic, the primary target at Talitha #A, and confirmed a Prospective Resource of 302 million barrels of recoverable oil. Formal delineation of the ultimate potential of the lower, secondary targets requires additional analysis.

Bob Rosenthal, Technical Director of Pantheon, said: 

"The Talitha #A well is geologically significant as the well location will assess four independent targets over three potentially giant oil fields, unique in my over 40+ years' experience. Multiple independent targets increase the statistical likelihood for success for the well, and success in any one of these zones would be material for Pantheon."

"The Talitha #A well has been positioned to intercept our primary and shallowest objective, the Shelf Margin Deltaic ("SMD"), in the optimum location, structurally higher (updip) from the Pipeline State #1 discovery well where oil shows, logged pay and free oil in the mud pits were encountered in this and other zones. Our modelling predicts better reservoir qualities for the SMD in Talitha #A's updip location and our other target zones."

" The wellbore is positioned optimally for the primary SMD target. Achieving an effective test in this horizon is the top priority for the well. Accordingly, the well is not optimally located for all the secondary zones, in particular the Basin Floor Fan, however these horizons are in structurally better locations than in the downdip Pipeline State #1."

Jay Cheatham, CEO of Pantheon, said: 

"We all understand the impact this well has for Pantheon. Most of us have waited our entire careers to drill a well of this significance. To spud early in the drilling season is a bonus. If possible we want to log and test all four independent zones. Drilling season on the North Slope is short and weather dependent, usually ending at the end of March, so each additional operational day is valuable. When we completed our fund raising in late November, our estimated spudding date was late January. We've now accelerated that by about 15 days, which is testament to the great job of our team, our contractors and the State."

-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:

Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas exploration and production focused on several large projects located on the North Slope of Alaska ("ANS"), onshore USA. A major differentiator to other ANS projects is its close proximity to transport and pipeline infrastructure. 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.

On the North Slope of Alaska, Pantheon holds working interests of 89.2% - 100% in projects covered by c.1,000 square miles of proprietary 3D seismic. 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 302MMBO Prospective Resource at its Talitha project.

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.