TIDMPANR
RNS Number : 1101D
Pantheon Resources PLC
24 June 2019
24 June, 2019
Pantheon Resources plc
Partnership with leading High-Tech Geophysics specialist
Pantheon Resources plc ("Pantheon" or "the Company"), the
AIM-quoted oil and gas exploration company with working interests
in several conventional project areas in Tyler and Polk Counties,
onshore East Texas, and onshore North Slope of Alaska, is pleased
to provide the following update:
Partnership with eSeis, a leader in seismic petrophysics
Pantheon is pleased to announce that it has entered into a
services agreement with eSeis Inc, a pioneering proponent of 'High
Tech Geophysics' and 'Seismic Petrophysics' to lead Pantheon's
efforts in these areas. eSeis will be involved with processing,
analysis and interpretation of geophysical data. Importantly, eSeis
will partner with Pantheon leveraging their extensive industry
contacts and their technical expertise and experience to manage the
farmout process in Alaska. A key component to exploratory success
on the Alaskan North Slope has been the use of high-tech geophysics
and petrophysics analysis. eSeis' role will involve data room
management, introductions to potential partners and presenting the
technical (geophysical) component in partner discussions. The
company is aiming to formally open the data room in July with the
firm objective of achieving drilling in the Alaskan winter
2019/2020.
eSeis will undertake the work for a heavily discounted rate
(which management estimate to be a saving of $1.5 - $2m to the
company) in exchange for a 1% overriding royalty interest. Such a
performance-based remuneration structure achieves the dual
objective of aligning eSeis' interest with that of Pantheon
shareholders and of preserving cash resources. It is important to
note the Alaskan leases are state government leases which carry a
significantly lower royalty burden than most leases in the Lower 48
States of the USA. This deal would increase the lease royalty rates
to c.17.6% across the project area with e-Seis. By way of
comparison, the royalty burden on Pantheon's East Texas leases
averages 25%.
Roger Young, the CTO and Founder of eSeis, developed his
methodologies and technologies while working the North Slope of
Alaska and other regions. This technology, along with the Union
Texas Petroleum technical asset team, was instrumental in the
discovery of the billion barrel play known as the Alpine field
trend. This is the technology that eSeis and Pantheon will be
working within its Alaska project.
Update on Farmout process - North Slope of Alaska
As stated above, the Company is working with eSeis to prepare
its data room to formerly commence the farm-out process in order to
achieve its objective of drilling during the Alaskan winter
2019/2020 drilling season. Pantheon will seek a material up-front
cash contribution towards sunk cost
from any potential partner as well as 'promoted' drilling terms
where the farm-in partner would fund some or all of a specified
number of future wells in order to earn their working interest.
Pantheon's objective would see one well drilled at the Talitha
project and a minimum of one well drilled at Alkaid/Phecda in the
2019/2020 drilling season.
As announced earlier this month, the confirmation of Alkaid as a
discovery well in the Brookian formation has led the technical team
at Pantheon to upgrade the P50 Technically Recoverable Resource at
Alkaid and Phecda (now considered the same structural enclosure) to
between 90-135 million barrels of oil ("mmbo"), given an estimate
of oil in place ("OIP") of 900 mmbo and with recovery factors
estimated at 10-15% (with potential for further improvement in
recovery factors should secondary recovery techniques be
successfully applied). The project is ideally located in Alaska,
immediately adjacent to the Trans Alaskan Pipeline and Dalton
Highway which delivers advantages operationally, financially and
has the potential to be brought into production more rapidly than
other areas of Alaska - anticipated to be 2021. The early stage
development plan foresees the possibility (but not the guarantee)
of first production in 2020. The Talitha project is also favourably
located near to the TAPS and Dalton Highway and has a P50
Technically Recoverable Resource of 508 mmbo.
Following the Alkaid discovery announcement dated 6 June, 2019
Pantheon confirms that it has received unsolicited communications
from a number of industry parties expressing interest in the
Alaskan project, which gives the Company genuine confidence that it
will achieve a successful result in its impending farmout
efforts.
Jay Cheatham, CEO, said:
"The eSeis contract is a fantastic outcome, and indeed
endorsement, for Pantheon shareholders that opinion leaders in our
industry see the value of our project. We consider eSeis to be
amongst the very best in their field and their decision to link
most of their remuneration to the success of our project is an
incredible validation of the potential they see in our play in
Alaska, and aligns their interests with that of Pantheon
shareholders. They have an exceptional track record and we are
honoured to have them as part of our team. They will be heavily
involved in the farmout process, which we hope to commence in the
short term given our objective to be drilling in Alaska this coming
winter."
"I am also pleased to report the permitting efforts for the
Alkaid project are well underway and we look forward to updating
shareholders in due course."
-ENDS-
Further information:
Pantheon Resources plc +44 20 7484 5361
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate
Development
Arden Partners plc (Nominated Adviser and broker) +44 20 7614 5900
Paul Shackleton
Daniel Gee-Summons
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 held a 50% to 75% working interest
("WI") 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 10% and 90% of prospects covered by circa 1,000 square
miles of 3D seismic with P50 Technically Recoverable Resources
estimated at over 1.2 billion barrels of oil excluding the Winx
Prospect and the West Sak and Ugnu formations.
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
management 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. It is emphasised that the valuations, which are
unaudited projections, do not constitute any form of forecast,
whether of cash, profit or otherwise.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
CNTDGGDLDGDBGCX
(END) Dow Jones Newswires
June 24, 2019 02:01 ET (06:01 GMT)
Pantheon Resources (LSE:PANR)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Pantheon Resources (LSE:PANR)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024