TIDMPANR
RNS Number : 4384F
Pantheon Resources PLC
16 July 2021
16 July 2021
Pantheon Resources plc
Management Resource Upgrade - Shelf Margin Deltaic &
Upcoming Webinar Details
Pantheon Resources plc ("Pantheon" or the "Company"), the
AIM-quoted oil and gas Company with a 100% working interest in
projects spanning c.160,000 acres, covered by 1,000 square miles of
3D seismic, advantageously located adjacent to transportation and
pipeline infrastructure on the Alaska North Slope, is pleased to
provide the following management resource upgrade on its Shelf
Margin Deltaic ("SMD") sequence as well as to provide details of an
upcoming investor webinar.
Resource Upgrade - Shelf Margin Deltaic
Pantheon is pleased to report that it has now completed its
internal analysis of the SMD-B sequence encountered in the Talitha
#A well. The SMD is the shallowest of five discrete oil bearing
intervals encountered in that well. The SMD interval itself is
comprised of three individual components: the SMD-A, the SMD-B and
the SMD-C. The excellent quality data obtained in Talitha #A has
allowed Pantheon to integrate well log response and core data with
seismic petrophysics to more accurately map this interval.
Pantheon has completed its analysis of the SMD-B zone, one of
the three zones within the SMD, and estimates that this zone has
the potential to contain 2.6 billion barrels oil in place ("OIP")
and a P50 Contingent Resource (recoverable) of 404 million barrels
oil ("mmbo"). The Company's previous management estimate for the
SMD was an OIP of 1.8 billion barrels and a P50 Prospective
Resource of 483 mmbo across all three of its zones combined, of
which approximately 265 mmbo were attributable to the SMD-B zone;
being the zone subject to today's resource upgrade.
Analysis is not yet complete on the SMD-A and SMD-C zones,
although as previously reported it is anticipated that the SMD-A
will experience a reduction, whereas the SMD-C is broadly in line
with previous analysis. When considered as a whole, management
believe the resource potential of the SMD has been upgraded
substantially.
Today's resource upgrade is significant in that it is both (a)
materially larger in size, and (b) management believe meets the
higher resource classification of 'Contingent Resource', than the
previous 'Prospective Resource'. This also compares favourably to
the previous Independent Experts estimate in September 2020 of 302
mmbo Prospective Recoverable Resource across all three zones of the
SMD.
The geographic location of Pantheon's leases has a significant
economic advantage because they can be developed from the Dalton
Highway, materially reducing development costs and accelerating the
time to first production and revenues. This offers Pantheon a major
competitive advantage in expediting development and production
compared to other operators on the North Slope of Alaska.
Farmout Discussions
Pantheon confirms that discussions have commenced with a number
of groups for the purpose of seeking the farmout of a working
interest percentage in one or more of the Company's Alaskan
projects. Pantheon's objective is to complete a farmout or funding
in Q4 in order to provide sufficient capital for future drilling,
testing and working capital. The Company's objective for winter
2021/22 is for an active work programme to test all zones of the
Talitha #A well and to drill at least one other well at either
Alkaid or Theta West. An Alkaid development well has the benefit of
being able to be hooked up to production to generate revenues
shortly after completion, and a Theta West well has the attraction
of testing a globally significant play which offers tremendous
potential for value creation.
Investor Webinar
Pantheon management is pleased to announce that it will be
hosting an investor presentation over the next few weeks, open to
all shareholders and interested parties. The webinar will discuss
the significance of the Talitha #A well result and the resultant
management resource upgrades at both Theta West and the SMD.
Details for the webinar will be provided in due course.
Pantheon management will be joined by a special guest, Mr Mike
Smith, President and founder of AHS (Advanced Hydrocarbon
Stratigraphy), to discuss the significance to Pantheon of the Baker
Hughes AHS Volatiles Analysis Service ("VAS"), invented and
supplied by AHS, which was used successfully on the Talitha #A
well.
Pantheon is also pleased to announce that Mr Roger Young, Chief
Technology Officer for eSeis, and Dr Edward Duncan, Senior
Geoscience Consultant and Founder of Great Bear, and Michael
Duncan, Vice President of Engineering and operations will also make
part of the technical presentation.
Bob Rosenthal, Technical Director, said:
"Our technical team is very excited about what we have
discovered and our intended operational activities for this
upcoming winter season. The discovered oil in the SMD, which we can
now identify across five separate wellbore penetrations in the
area, increases our confidence in the potential size and quality of
this resource. All the data and technical analysis to date point to
a consistent result in terms of the size of the discovery. The
geographic location adjoining the highway and export infrastructure
also allows for numerous low cost development options with reduced
environmental considerations and shorter timeframes."
Jay Cheatham, CEO, said:
"As mentioned previously, the Talitha #A well delivered
excellent exploration results that have given us an opportunity to
prove up a multi billion barrel oil accumulation with the potential
to be one of the largest conventional onshore oil discoveries made
in North America. Today's news is another important step, with the
SMD resource upgrade following the 1.4 billion barrel resource
estimate on the Theta West/Basin Floor Fan earlier this year. It is
also worth remembering that the resource potential of the Kuparuk
and the Slope Fan System is yet to be reported. The analysis to
date is very encouraging, as is the strong oil price outlook which
has resulted in greater interest in the sector from corporates,
investors and industry players alike."
-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:
Pantheon Resources plc +44 20 7484 5361
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate
Development
Canaccord Genuity plc (Nominated Adviser and
broker)
Henry Fitzgerald-O'Connor, James Asensio +44 20 7523 8000
Blytheweigh
Tim Blythe, Megan Ray, Alice Mclaren, Madeleine
Gordon-Foxwell +44 20 7138 3204
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.
The Resource estimates has been reported in accordance with SPE
standards.
Glossary
P50 There should be at least a 50% probability (P50)
that the quantities actually recovered will equal
or exceed the best estimate
Contingent Recoverable Contingent Resources are those quantities of petroleum
Resource estimated, as of a given date, to be potentially
recoverable from known accumulations, by the application
of development project(s) not currently considered
to be commercial owing to one or more contingencies.
Contingent Resources have an associated chance of
development. Contingent Resources may include, for
example, projects for which there are currently
no viable markets, or where commercial recovery
is dependent on technology under development, or
where evaluation of the accumulation is insufficient
to clearly assess commerciality. Contingent Resources
are further categorized in accordance with the range
of uncertainty associated with the estimates and
should be sub- classified based on project maturity
and/or economic status
Prospective Recoverable Prospective Resources are those quantities of petroleum
Resource estimated, as of a given date, to be potentially
recoverable from undiscovered accumulations by applying
future development projects. Prospective Resources
have both an associated Chance of Discovery and
a Chance of Development
MMBO Millon Barrels of Oil
Notes to Editors
Pantheon Resources plc is an AIM listed Oil & Gas company
focused on several large projects located on the North Slope of
Alaska ("ANS"), onshore USA where it has a 100% working interest in
over 160,000 highly prospective acres with potential for multi
billion barrels of oil recoverable. A major differentiator to other
ANS projects is its close proximity to transport and pipeline
infrastructure which offers a significant competitive advantage to
Pantheon, allowing for materially lower capital costs and much
quicker development times. 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.
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 management have
estimated Contingent Resources of 1.4 billion barrels of oil at
Theta West and 404 million barrels of oil in the Shelf Margin
Deltaic horizon.
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.
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END
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