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Pantheon Resources (PANR)

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Tuesday 13 October, 2020

Pantheon Resources

Upgraded management resource estimates - Kuparuk

RNS Number : 8531B
Pantheon Resources PLC
13 October 2020
 

 

 

13 October, 2020

 

Pantheon Resources plc

Upgraded management resource estimates - Kuparuk (Talitha Project)

 

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 advantageously located adjacent to transportation infrastructure on the Alaskan North Slope provides the following update:

Resource Upgrade

Pantheon has completed its resource assessment of the Kuparuk formation at its Talitha project. The Talitha project contains three independent target geological horizons, each with different reservoir trap geometries, qualities and risk profiles. All three of these formations were penetrated by the Pipeline State #1 wellbore on the Company's acreage and all were confirmed as oil bearing. The Company has now completed its analysis of the Kuparuk, the deepest of these three horizons, and estimates this horizon (on a 100% basis) to contain 1.4 billion barrels of oil in place (OIP) and a Prospective Resource (Recoverable) of 341 million barrels of oil (MMBO) as a most likely case.   The Company has modelled an illustrative development plan(1) for this zone with 62 producing wells, exploiting 247 MMBO of this resource, and using the WTI current forward price curve, yields a potential NPV10 of over US$1.48 billion, with NPV per barrel of $6.00 and an Internal Rate of Return of 55%.

Subject to the completion of a farmout, Pantheon intends to drill a well at Talitha in early 2021, which will test the Kuparuk as well as two other (shallower) target horizons:

1. The shallower 'Shelf Margin Deltaic' ("SMD") horizon, over which the Company recently received an Independent Expert Report ("IER") certifying a Prospective Resource of 302 MMBO (100% basis). This independent resource estimate covered only the 20,600 acres of the reservoir section which is structurally higher (ie "updip") from the oil encountered in the Pipeline State #1 discovery well, and did not cover the total resource across the entire structure or project area. The Production Unit at Talitha covers 44,373 acres. The SMD is the primary objective of the Talitha project due to its attractive reservoir qualities. Pantheon is nearing completion of a resource estimate over the entire SMD horizon in the Talitha Production Unit (the previous Company estimate, like the IER, was confined only to the updip area) and will report to shareholders when completed. The Company anticipates a material upgrade.

2. The "Slope Fan System" lies below the SMD and above the Kuparuk in depth. Oil was encountered throughout this system whilst drilling the original Pipeline State #1 well. The Company is presently working on a Resource Assessment for the Slope Fan System at Talitha and we expect completion before year end.

Bob Rosenthal, Technical Director, commented:

"This is a great result at Kuparuk, substantially increasing our estimates of total Prospective Resources at Talitha. Importantly, Talitha has scope for further resource improvement as we complete our work over the coming weeks and months to include (i) the Slope Fan System, and (ii) the entire structure across the SMD, which will now include the downdip section. The Kuparuk and the Slope Fan Systems are recognised oil producers in the area and hence these productive analogs provide increased confidence about future development. The SMD is the major new geological play type in the region where the recent large discoveries have been made and are now subject to major development programs. We are fortunate to have all these plays tested in one well with a mixture of older proven play types and the new and exciting play type which has yielded the largest onshore discoveries in the world over recent years.The Independent Expert Report on the SMD only considered the structurally higher 'updip' (high graded) location from the Pipeline State #1 discovery well where the reservoir quality is superior and excluded the downdip area entirely. Work on this larger area is presently underway and will be announced when completed. "

Jay Cheatham, CEO,commented: 

"If we can complete a farmout in time to drill this winter, Talitha has the potential, if successful, to be the most impactful well of my 50 year career. Having run Arco's international business and also its upstream Gulf of Mexico area business, you dream about these opportunities. It has taken over a decade of work to delineate and advance this opportunity to "drill ready" status. This appraisal well will test three separate and independent targets which collectively offer the potential for greater than a billion- barrels of recoverable oil. Each of these targets compare in size to large deepwater offshore projects around the world.  In our case they are onshore USA. The Talitha location is adjacent to the major highway and Trans Alaska Pipeline network serving the North Slope, positioning us beautifully in the event of success for a development, even in a low oil price world. Despite our obvious excitement about Talitha, an appraisal well updip from discovered oil, nothing is without risk in this business and commercial success is never guaranteed before drilling."

 

Investor Presentation / Webinar details

 

The Company confirms that management will be hosting an Investor Webinar on Monday 19th October, 2020, which will be open to all shareholders and interested parties. Those wishing to participate will be able to access the Webinar shortly before   7.00pm British Summer Time   via the link below:  

 

Pantheon is also pleased to announce that Mr Roger Young, Chief Technology Officer for eSeis, will make part of the technical presentation.  

 

https://www.bigmarker.com/share-talk/Investor-Presentation-and-Q-A-Session-Talitha-Project-Kuparuk-Resource-Upgrade-Company-Overview/

 

Attendees should use the latest version of Chrome, Safari or Firefox for the best experience.  

Alternatively, investors can download the IOS application for Big Marker, or dial in via telephone. Details are outlined below:

 

Webinar ID: 13a48c811df6
Dial:   USA (312) 248-9348
Dial:   UK  (0)1793 250421

Attendee Dial-in ID Number: 872274#
Attendee Dial-in Passcode: 5536#  

 

A copy of the presentation will automatically be displayed on the Webinar for all participants. Additionally, a copy will also be made available on the Company website prior to the meeting.

-ENDS-

 

 Notes:

(1)  Assumes development cost is funded

 

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 (Corporate Finance)

Simon Johnson (Equity Sales)

 

 

 

Blytheweigh

+44 20 7138 3204

Tim Blythe, Megan Ray, Madeleine Gordon-Foxwell

 

 

Cautionary Statement: The estimated quantities of hydrocarbons that may be potentially recovered by the application of a future development project relate to undiscovered accumulations and are estimates only. There is no guarantee that the estimated hydrocarbons will be recovered. Actual hydrocarbon resources or estimates of production volumes or revenues may be greater than or less than the estimates provided herein. These estimates have both an associated risk of discovery, a risk of funding and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons. There is no certainty as to any renewal of the Company's existing operating arrangements or leasehold positions."

 

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.

 

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.

 

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.

 

Glossary

Bbl = barrels
boe = barrels of oil equivalent
Bopd = barrels of oil per day
EUR = Economic Ultimate Recovery
MBL = thousand barrels of oil
MMBO = million barrels of oil
Mboe = thousand barrels of oil equivalent

MMboe = million barrels of oil equivalent

OIP = oil in place

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