11
November 2024
Pantheon Resources
plc
Spudding of Megrez-1
well
Pantheon Resources plc (AIM:PANR, OTCQX: PTHRF)
("Pantheon" or the "Company"), an oil and gas
company developing the Kodiak and Ahpun oil fields in close
proximity to pipeline and transportation infrastructure on Alaska's
North Slope, today announces the spudding of the Megrez-1 well to
explore the eastern topsets in the Ahpun field, immediately
adjacent to pipeline and road infrastructure.
The reservoir sections to be
targeted are both younger and shallower than in any of Pantheon's
previous Alaskan wells, with superior reservoir characteristics
predicted. The Megrez-1 well will target three topset horizons,
which the Company estimates to contain an aggregate 2U Prospective
Resource of 609 million barrels of ANS Crude (oil, condensate &
NGLs) and 3.3 trillion cubic feet ("Tcf") of natural gas. Initial
results from the well will be announced when drilling operations
are complete.
Pantheon contracted the Nabors 105AC
rig, which the Company is familiar with having used it in previous
drilling campaigns, to drill the Megrez-1 well. Construction of the
gravel pad next to the Dalton Highway was completed in October, and
the pad can be used year-round to support future drilling and
development activities.
President-elect Trump address to Alaska
Pantheon was greatly encouraged by
the supportive words made by the President-elect and the Governor
of Alaska last week with respect to their intentions for
progressing the proposed Alaska natural gas pipeline (Phase 1 of
the Alaska LNG project). A copy of Mr Trump's speech can be found
at:
https://www.facebook.com/GovDunleavy/videos/president-trump-addresses-alaska/514641971572044/
David Hobbs, Executive Chairman of Pantheon Resources,
said: "A success at Megrez-1 will expand the
understanding of Ahpun oil and gas accumulations and dramatically
impact the economics of the Ahpun full field development.
There are few, if any, onshore
wells targeting what we estimate to be more than 1 billion boe
(barrels of oil equivalent) of 2U Prospective Resource anywhere in
the world during this year. We believe the target reservoir
sections should exhibit at least an order of magnitude better
permeability than Ahpun's western topsets which were logged and
cored in the Pipeline State-1 well on Pantheon's
acreage. In a success case, the 609
million barrels of ANS crude immediately adjacent to the
Trans-Alaska Pipeline would yield a very high NPV/barrel and the
3.3 Tcf would significantly enhance Pantheon's gas resource base
into its proposed gas project with Alaska Gasline Development
Corporation.
"While the outcome of the Megrez-1 well will not impact our
already certified 1.6 billion barrels of contingent resources,
success here would be material to our Ahpun development plans for
both ANS crude and gas. I look forward to reporting on progress
once drilling is complete."
For further information, please
contact:
UK
Corporate and Investor Relations Contact
Pantheon Resources plc
Justin Hondris
+44 20 7484 5361
contact@pantheonresources.com
Nominated Adviser and Broker
Canaccord Genuity Limited
Henry Fitzgerald-O'Connor, James Asensio, Charlie Hammond
+44 20 7523 8000
Public Relations Contact
BlytheRay
Tim Blythe, Megan Ray, Matthew Bowld
+44 20 7138 3204
U.S. Investor Relations Contact
MZ Group
Lucas Zimmerman, Ian Scargill
+1 949 259 4987
PTHRF@mzgroup.us
About Pantheon
Resources
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 6.6 Tcf
(trillion cubic feet) of associated natural gas. The Company owns
100% working interest in c. 259,000 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 (Alaska Gasline Development Corporation)
provides the potential for Pantheon's natural gas to be produced
into the proposed 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 shorter development timeframes, 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 (million barrels) of ANS
crude and 5,396 bcf (billion cubic feet) 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 natural gas.
For more information visit
www.pantheonresources.com.
Glossary
Boe
Barrel of oil equivalent, is a term used to summarize
the amount of energy that is equivalent to the amount of energy
found in a barrel of crude
oil. One barrel of oil is
generally deemed to have the same amount of energy content as 6,000
cubic feet of natural gas. So this quantity of natural gas is
"equivalent" to one barrel of oil