AGM webinar & corporate update

RNS Number : 4469T

Pantheon Resources PLC

20 March 2023

 

20 March, 2023 

 Pantheon Resources plc

AGM webinar & corporate update

Pantheon Resources plc ("Pantheon" or "the Company"), the AIM-quoted 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, confirms that following the Company's AGM, a shareholder presentation/webinar will be held at   5.30pm GMT   today.  

About the Webinar

As previously announced, the shareholder presentation and Q&A, which would have taken place at the AGM, will be held as a separate event by Webinar at 5.30pm GMT today and is open to all shareholders and interested parties. Those wishing to participate can register for the Webinar via the link at the bottom of this page.

A copy of the PowerPoint presentation to be delivered during the Webinar will be uploaded to Pantheon's website at  www.pantheonresources.com   shortly beforehand. A recording of the Webinar will also be uploaded to the Company's website once available.

The Webinar will provide a high level overview of Pantheon's projects and the significant advancements made over the past 18 months, with a focus on the learnings from Alkaid #2. Pantheon's soon to be appointed independent director, Mr David Hobbs, a Petroleum Engineer with over 40 years' experience in upstream oil and gas and energy policy, will also contribute to the webinar.

The presentation includes certain information not previously disclosed as follows:

Wood MacKenzie ("WoodMac") . The Company notes WoodMac have published a report, made available to WoodMac clients, which announced Pantheon's 100% owned Theta West #1 well as "the fourth biggest discovery well globally in 2022." Consistent with Pantheon's own assessment WoodMac characterise Theta West as a contingent resource requiring additional drilling and testing before potentially being considered commercial.  

Pantheon notes that Theta West is unique in that it is the only onshore discovery in this top four global discovery list. Being onshore and close to existing export infrastructure provides major advantages to any commercial development subject to additional appraisal drilling and production testing. 

Alkaid #2   - the Alkaid #2 test well has now flowed for more than two months with much data generated and analysed. Recently completed analysis by SLB has concluded that the stimulation most likely fracked into a small gas cap which, coupled with solution gas, resulted in a gas oil ratio ("GOR") many times greater than that observed in the the same reservoir as the Alkaid #1 well.

Analysis suggests that future Alkaid horizontal wells should be positioned slightly deeper in the formation to achieve a much richer GOR and superior flow rates of oil. Notwithstanding the higher GOR in Alkaid #2, the well has stabilized into a typeset decline curve providing the necessary data for development modelling. Given the Company does not have the necessary facilities to separate and thus sell the Natural Gas Liquids (NGLs) and condensate, and given the higher gas volumes, the Company does not plan to seek an extension of the gas flaring permit. Any future development of Alkaid will include the necessary refrigeration equipment to separate and sell the high value NGLs as well as the crude oil.

Future operations at Alkaid will now focus on moving up the well bore and testing the shallower Shelf Margin Deltaic ("SMD") zone in the shallower vertical section of the well bore after plugging the Alkaid zone of interest (ZOI) reservoir. The SMD reservoir is estimated by management to be approximately five times larger than the Alkaid reservoir and has been penetrated in several of Pantheon's wells. Analysis of these well results indicate that the SMD has superior reservoir qualities than the Alkaid #2 well. Successful testing of the SMD would add another completely independent oil accumulation to the recently tested Alkaid ZOI which could be jointly developed using the same infrastructure from drill pads positioned adjacent to the highway. The size and location of the SMD oil resource would significantly enhance the commerciality of the oil at the Alkaid location.

Strengthening of Team

In addition to the appointment of Mr David Hobbs as an independent director to the board, effective tomorrow, Pantheon confirms the appointment of Mr Tony Beilman to the team to strengthen the Company's operational capability. Tony is a Petroleum Engineer with decades of engineering and operations experience and has been tasked with a clear mandate to improve and optimise operational performance.

AGM presentation and webinar

https://www.bigmarker.com/share-talk/Pantheon-Resources-AGM-Shareholder-Presentation-and-Q-A-March-2023

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. Dial in details are outlined below:

Attendee Dial-in Number:   [phone]
Attendee Dial-in: UK (0)1793 250421
Attendee Dial-in ID Number: 684040
Attendee Dial-in Passcode: 9479

Jay Cheatham, CEO, said:   "WoodMac is a globally recognised industry leader and a highly prestigious name. I am delighted to note that they have reported our Theta West discovery as one of the four largest globally in 2022. The other three are all offshore discoveries, making Theta West the largest onshore discovery globally in 2022. Our internal work and the recently completed SLB analysis (Reservoir Modelling Report from SLB [Schlumberger] - Dec 2022) provide confidence in the size of the oil accumulation. This is a strong endorsement and one I hope gives investors great comfort in this very difficult period where investors have lost confidence over the results of our Alkaid #2 well, impacted, in part, by social media noise. Alkaid represents less than 4% of our estimated resource base and we will spend some time during the AGM presentation today explaining to shareholders why we believe the Alkaid #2 result is not nearly as bad as the share price reaction suggests. Our share price today in less than half of what it was before we drilled the fourth largest discovery well in 2022. Nothing we have seen at Alkaid has diminished managements' belief in the potential of our assets, and our recent appointments confirm our intention to build the best team to extract maximum value from our portfolio."

-ENDS-

Further information, please contact:

Pantheon Resources plc	[phone]
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate Development
Canaccord Genuity plc (Nominated Adviser and broker)
Henry Fitzgerald-O'Connor Gordon Hamilton	[phone]
BlytheRay
Tim Blythe, Megan Ray, Matthew Bowld	[phone]

Glossary

Bbl Contingent Resource	Barrel Those quantities of petroleum which are estimated on a given date, to be potentially recoverable from known accumulations, but which are not currently considered to be commercially recoverable.
NGL	Natural Gas Liquid

-Ends-

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.

 

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