10
December, 2024
THIS ANNOUNCEMENT CONTAINS
INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION
(596/2014/EU) AS IT FORMS PART OF UK DOMESTIC LAW PURSUANT TO THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED
("MAR")
Pantheon Resources
plc
Megrez-1 well discovery -
penetrates multiple horizons containing light liquid hydrocarbons
over 1,260ft vertical interval
Pantheon Resources plc (AIM:PANR, OTCQX: PTHRF)
("Pantheon" or the "Company"), the 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 announced the Megrez-1 well as a discovery in
the eastern topsets in the Ahpun field. The well has reached Target
Depth ("TD") and the Company has run 5 ½" production casing in
anticipation of long term testing commencing early
2025.
Key
Points
· Megrez-1 has
discovered a large light liquids hydrocarbon column (based on logs
and gas chromatography)
· Log analysis
indicates three hydrocarbon bearing zones over a
~1,260 foot ("ft") vertical
section including the two primary objective
formations
· Significant
portions of the reservoirs encountered exhibited porosities
above 20%, as anticipated
pre-spud
· More accurate
porosities and permeabilities will be determined after detailed
analysis of whole cores has been completed
· Operations have
been completed in line with time and cost budgets, comprising
gathering a full suite of wireline logs including sidewall cores
throughout the interpreted reservoir intervals and a whole core in
one of them
Preliminary analysis indicates that
Megrez-1 has intersected multiple horizons containing light liquid
hydrocarbons over some 2,060ft of measured depth ("MD") (1,260ft
vertical ("TVD")). Multiple reservoirs were contained in this
overall section consisting of interbedded sands and shales. All of
the penetrated hydrocarbon bearing intervals are of Maastrichtian
age. More specifically:
· Top Set 1 from
5,950ft - 6,440ft TVD (7,140ft - 7,940ft MD) and Top Set 3 from
6,440ft - 6,700ft TVD (7,940ft - 8,360ft MD) are interpreted as
containing light liquid hydrocarbons
· In addition to the
topsets prognosed pre-drill, the well encountered the Upper and
Lower Prince Creek formations (shallower top sets), interpreted as
containing light liquid hydrocarbons over a 510ft gross vertical
interval from 5,440ft - 5,950ft TVD (6,300ft - 7,140ft
MD)
· The third and
deepest top set originally prognosed to be penetrated (TS9) was not
well developed in this location
· A 60ft core was
taken from 8,298ft - 9,358ft MD (6,665ft - 6,702ft TVD), within Top
Set 3 with 100% recovery
· 50 sidewall cores
were taken across all three intervals interpreted as containing
light liquid hydrocarbons
Over the coming weeks and months,
the Company will be evaluating a large data set gathered from the
well, including whole core (which has been sent to independent labs
for assaying), VAS analysis (Volatiles Analysis) of cuttings, logs
and sidewall cores, with preliminary analysis estimated to be
completed during February 2025. These analyses will be used to
determine more detailed reservoir characteristics and begin the
planned extensive long term production testing programme. This will
benefit from the availability of the Nabors-105AC rig which is
stacked on the Megrez gravel pad, adjoining the Dalton Highway,
until required.
Bob
Rosenthal, Technical Director of Pantheon Resources,
said: "This is an excellent result, justifying
our assessment of both the geological chances of success and the
likelihood of encountering commercially viable resources. We
are now evaluating the extensive data gathered in the well, which
will take some time, but will provide us with maximum information
to design well testing . Tony Beilman and the team have done a
great job in delivering this well on time and budget, including
gathering a full suite of wireline logs and a whole
core.
"It's early days in the
evaluation of the well results. The full significance of these
results will become clearer once the data are analysed and
after production testing, expected during Q1
2025."
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 David Hobbs, a qualified Petroleum Engineer and a
member of the Society of Petroleum Engineers, who has 40 years'
relevant experience within the sector.
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
USA
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. 258,000 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.