12
August 2024
Pantheon Resources
plc
Pantheon Secures Rig for
Megrez-1 Well and Award of New Leases
Pantheon Resources plc (AIM: PANR)
("Pantheon" or "the Company"), owner of 100% working interest in
the Kodiak and Ahpun oil fields, containing independently evaluated
recoverable contingent resources of c. 1.6 billion barrels
("Bbbl") of ANS crude and 6.7 trillion cubic feet ("Tcf") of
natural gas in close proximity to pipeline and transportation
infrastructure on Alaska's North Slope, is pleased to announce that
it has executed a rig contract to secure the use of the Nabors
105AC rig to drill the Megrez-1 well in Q4 2024.
Pantheon also announces that the
leases which it successfully bid for in December 2023 have been
awarded and are expected to be issued within the coming
weeks.
Execution of Drill Rig Contract
Pantheon has formally contracted to
use the Nabors 105AC drill rig, a rig the Company is familiar with
having used it in previous drilling campaigns, to drill the
Megrez-1 exploration well which will target the Ahpun East topset
play. Siteworks for construction of a gravel pad along the west
side of the Dalton Highway are expected to commence in September
and upon completion of these siteworks the drill rig will be
mobilised.
The Megrez-1 well is estimated to
have a 69% geological chance of success and will target the topset
sands in Ahpun East project area which the Company estimates to
contain a 2U Prospective Resources of 609 million barrels of
marketable liquids and 3.3 Tcf of natural gas. The Ahpun East
topsets are significantly shallower than the Ahpun western topsets
drilled previously.
Formal Award of Leases
The Company has also paid the
remaining portion of the fees for the 46 new oil and gas leases
acquired in the State of Alaska's 2023W Areawide oil and gas lease
sale held in December 2023 as announced on
14 December 2023. Based on the
official title work done by the State prior to awarding the leases,
the 46 new leases consist of an aggregate of 65,691.5 acres, 30 of
which are located on the western boundary of the Kodiak Field and
16 of which cover the Ahpun East topset play. The State of Alaska
will execute and issue the leases in the next few weeks.
Jay
Cheatham, Pantheon's Chief Executive, commented:
"With a
management best estimate for the eastern topsets in Ahpun at over 1
billion barrels of oil equivalent 2U Prospective Resource to be
tested by the Megrez-1 well, located immediately adjacent to
pipeline and road infrastructure and in reservoirs expected to be
orders of magnitudes better than western topsets, we believe this
to be one of the most impactful onshore exploration well being
drilled anywhere in the world during 2024. Success here would
further advance our Ahpun development models and
plans."
Further information, please
contact:
Pantheon Resources
plc
+44 20 7484 5361
David Hobbs, Executive
Chairman
Jay Cheatham, Chief Executive
Officer
Justin Hondris, Director, Finance
and Corporate Development
Canaccord Genuity plc (Nominated Adviser and
broker)
+44 20 7523 8000
Henry Fitzgerald-O'Connor
James Asensio
Charlie Hammond
BlytheRay
+44 20 7138
3204
Tim Blythe
Megan Ray
Matthew Bowld
Notes to Editors
Pantheon Resources plc is an AIM
listed Oil & Gas company focused on developing its 100% owned
Ahpun and Kodiak fields located on State of Alaska land on the
North Slope, onshore USA. Independently certified best estimate
contingent recoverable resources attributable to these projects
currently total c. 1.6 billion barrels of ANS crude and 6.7 Tcf of
associated natural gas. The Company owns 100% working interest in
c. 259,000 acres with the award of the additional 66,240
acres.
Pantheon's stated objective is to
demonstrate sustainable market recognition of a value of $5-$10/bbl
of recoverable resources by end 2028. This is based on bringing the
Ahpun field forward to FID and producing into the TAPS main oil
line (ANS crude) by the end of 2028. The Gas Sales Precedent
Agreement signed with AGDC provides the potential for Pantheon's
natural gas to be produced into the planned 807 mile pipeline from
the North Slope to Southcentral Alaska during 2029. Once the
Company achieves financial self-sufficiency, it will apply the
resultant cashflows to support the FID on the Kodiak field planned,
subject to regulatory approvals, targeted by the end of 2028 or
early 2029.
A major differentiator to other ANS
projects is the close proximity to existing roads and pipelines
which offers a significant competitive advantage to Pantheon,
allowing for materially lower infrastructure costs and the ability
to support the development with a significantly lower pre-cashflow
funding requirement than is typical in Alaska. Furthermore, the low
CO2 content of the associated gas allows export into the planned
natural gas pipeline from the North Slope to Southcentral Alaska
without significant pre-treatment.
The Company's project portfolio has
been endorsed by world renowned experts. Netherland, Sewell &
Associates estimate a 2C contingent recoverable resource in the
Kodiak project that total 1,208 mmbbl of ANS crude and 5,396 bcf of
natural gas. Cawley Gillespie & Associates estimate 2C
contingent recoverable resources for Ahpun's western topset
horizons at 282 mmbbl of ANS crude and 803 bcf of natural gas. Lee
Keeling & Associates estimated possible reserves and 2C
contingent recoverable resources totalling 79 mmbbl of ANS crude
and 424 bcf.
Glossary
2U: The
unrisked best estimate qualifying as Prospective
Resources
ANS: Alaska
North Slope
Bbls: Barrels
Bbbl: Billion
barrels
Bcf: Billion cubic
feet
Mmbbl: Million barrels
NGLs: Natural
gas liquids (NGL) are components of natural gas that are separated
from the gas state in the form of liquids.
Overriding Royalty Interest
(ORRI): A royalty granted to a third party
other than the royalty payable to the State of Alaska.
Prospective Resources:
Prospective Resources are those quantities of
petroleum which are estimated, on a given date, to be potentially
recoverable from undiscovered accumulations.
Tcf: Trillion cubic feet
Working Interest: The legal ownership of the leases awarded by
the State of
Alaska. Pantheon's Net Revenue Interest (NRI) in the leases is less
than 100% by virtue of royalties payable to the State and any ORRI.
In the case of the Kodiak project, the State royalties
vary between 12.5% and 16.67%. Management estimates that the
average NRI is approximately 85%.