TIDMPANR
RNS Number : 9105F
Pantheon Resources PLC
10 November 2022
10 November 2022
Pantheon Resources plc
Successful Acquisition of Key Leases in State of Alaska's North
Slope Areawide Lease Sale
Operational Update
Pantheon Resources plc ("Pantheon" or "the Company"), the AIM
listed oil and gas company with a 100% working interest in all of
its oil projects spanning c. 153,000 acres adjacent and near to
transportation and pipeline infrastructure on the Alaska North
Slope ("ANS"), is pleased to provide the following operational
update:
Successful Bidding at State of Alaska's North Slope Areawide
Lease Sale
Pantheon is pleased to announce the successful acquisition of
approximately 40,000 acres in the State of Alaska's North Slope
Areawide Lease sale. Pantheon was successful on all bids submitted.
The new leases are strategically positioned in two areas contiguous
or adjacent to the Company's current acreage on its north western
boundary, covering the extension of the Theta West project, and
east, capturing the area adjacent to the junction of the Alkaid
Unit and the Talitha Unit.
Pantheon had a competitive advantage in bidding for this acreage
given its sole use of the proprietary 3D seismic which covers the
leases, and which is not currently accessible by any 3(rd) parties.
These acreage additions are a direct result of detailed technical
work completed by Pantheon's technical team and its consultants at
eSeis following the successful Theta West #1 discovery well drilled
earlier this year.
Pantheon's winning bids averaged $28.00 per acre, significantly
lower than the average of the winning bids recorded on other
acreage in the sale. When the leases are officially awarded by the
State of Alaska, estimated to be in six to 12 months' time, they
will come with a 10-year initial term, an annual rental of $10 per
acre, and a royalty rate of either 12.5% (four leases, 5,760 acres)
or 16.67% (13 leases, 34,240 acres). These additions allow Pantheon
to continue to strategically high grade its acreage based on the
recent technical work completed by its team.
Alkaid #2 - Operational Update
As previously reported, the Alkaid #2 well encountered a sand
blockage during the early clean up phase of flow testing. The sand
was sent for analysis and was confirmed to be sand introduced
during the fracture stimulation operations and not formation sand.
A coiled tubing unit ("CTU") was ordered to clean out the wellbore
and has now arrived on location following a 10 day delay.
Clean out operations continue at the Alkaid #2 well. During the
wellbore cleanout operations, conservative pumping rates are
required due the tight tolerances between the outside diameter of
the CTU and the inside diameter of the production tubing. Once
these clean out procedures have been finalised, flow testing
operations will resume thereafter. This delay has not impacted the
potential of the Alkaid #2 well.
Bob Rosenthal, Technical Director, stated :
"Acquiring these leases was a highly successful outcome for
Pantheon and importantly, the acreage is in very close proximity to
the established export infrastructure. Our team has spent over a
decade working this area, enhanced recently with advanced
geophysical evaluation and the analysis of the huge dataset gained
in our successful drilling of the Theta West #1, Talitha #A and
Alkaid #2 wells this year.
"The new Theta West acreage is in the same trap as our existing
resource and the new Alkaid acreage covers a mapped extension of
the Shelf Margin Deltaic (SMD) and Alkaid anomalies. The Theta West
acreage is structurally shallower and updip from the Theta West #1
well and should yield better reservoir properties. Accordingly, we
expect to report a material upgrade to our Theta West project
resource in due course. The acreage adjacent to the Alkaid and
Talitha Units is strategic as it allows continued development
opportunities along the Dalton Highway, along with the potential
for a resource upgrade."
Jay Cheatham, CEO, added:
"Having watched the evolution of these plays as the combination
of the 3D seismic and the petrophysical analysis developed, I am
delighted that Pantheon was the successful bidder on this acreage.
The geographic location both in terms of the geological plays in
contiguous acres and in relation to the export infrastructure were
important considerations. Management believes this new acreage adds
significant resource potential to our existing management estimates
of 23 billion barrels of oil in place and over two billion barrels
of recoverable resource, which we have continued to high grade.
"As to the operations at Alkaid #2, I reiterate my previous
comments that the blockages are inconvenient and have caused us
delays, but the potential of Alkaid #2 is unchanged. As is always
the case, we cannot make a definitive assessment of the ultimate
commerciality of the well until flow testing operations have
concluded. However, we remain optimistic. I look forward to working
with the State of Alaska on these leases and the development of our
projects on the North Slope."
-Ends-
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,
Gordon Hamilton +44 20 7523 8000
BlytheRay
Tim Blythe, Megan Ray, 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.
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
153,000 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.
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) incorporated into, or forms part of, this
announcement. The information contained within this announcement is
considered to be inside information prior to its release.
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