Alaskan update and notification of CEO Q&A podcast

RNS Number : 4836Z

Pantheon Resources PLC

20 May 2019

 

20 May 2019

Pantheon Resources plc

 

Alaskan update and notification of CEO Q&A podcast

Pantheon Resources plc ("Pantheon" or "the Company"), the AIM-quoted oil and gas exploration company with working interests in several conventional project areas in Tyler and Polk Counties, onshore East Texas, and onshore North Slope of Alaska is pleased to advise the following update in relation to the testing of the Alkaid well located on the Alaska North Slope:

Alkaid Discovery Well, Alaska North Slope, Pantheon 100%* Working Interest

Subsequent to the announcement of Alkaid as a discovery well following the successful production testing operations in the primary zone of interest (the "ZOI" or "Brookian formation"), the wellbore has been successfully suspended and freeze protected for future production purposes. Data analysis is ongoing.  Interpretation to date suggests that the reservoir quality encountered in the ZOI is greatly superior to pre-drill estimates which should have positive implications for possible reserve and production potential at the Alkaid prospect. The result has increased our confidence in the adjoining Phecda structure, as well as in the Talitha prospect. 

The Brookian ZOI is estimated to have 400 ft of gross pay and 240 ft of net pay, of which a 6 ft interval was perforated and stimulated, flowing over 100 bopd of light oil. Future development wells will be drilled horizontally and multi stage fracked, as is typical for the region and would be expected to result in significantly higher flow rates than that of a vertical test well.

The Company has engaged a third party expert consultancy to conduct petrophysical analysis. The results are due over the forthcoming week and  will provide key input into future development planning.

The process for permitting a pad adjacent to the haul road and pipeline for long term production testing and delineation of the Alkaid discovery is underway. The immediate proximity of Alkaid to such infrastructure is of tremendous benefit to Pantheon, both operationally and financially.

Pantheon is also pleased to announce that it has contracted the services of one of the leading expert consultancies in 'high tech geophysics' to undertake additional work over our prospect inventory. This work has already commenced and is presently underway.

CEO Q&A podcast

Following receipt of the conclusions to the petrophysical analysis, Pantheon intends to conduct a "CEO Q&A" podcast which will provide a more comprehensive overview of our interpretation of Alkaid and of other operations. It is intended that this will occur during the week commencing Monday, 27^th May 2019.

Jay Cheatham, CEO, said:

"The Alkaid well is important, not just as a significant discovery in its own right but also for upgrading other prospects including Phecda and Talitha. Alkaid is a seismic anomaly delineated using high tech geophysics - the same technique used so successfully across the North Slope of Alaska to discover very large oilfields with very high drilling success rates. Of great importance, it has proved to us that our high-tech geophysics model works, which is exactly what we wanted to see."

"I look forward to providing a fuller update in our CEO Q&A in the next 1-2 weeks."

-ENDS-

 Further information:

Pantheon Resources plc	[phone]
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate Development
Arden Partners plc (Nominated Adviser and broker)	[phone]
Paul Shackleton Daniel Gee-Summons

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.

Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas exploration and production company with assets in East Texas and on the North Slope of Alaska, onshore USA.

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 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 an order of magnitude below that of offshore wells.

In East Texas, Pantheon holds a 50% to 75% working interest (and in present discussions to increase this to 100% working interest for non-cash consideration) in several conventional prospects in Tyler & Polk Counties, in an area of abundant regional infrastructure, and in proximity to the prized Double A Wells Field. P50 Technically Recoverable Resources (Gross) are estimated at 157 million barrels of oil equivalent.

In Alaska, following its acquisition of the assets of Great Bear Petroleum in January 2019, Pantheon holds working interests ranging between 10% and 90% of prospects covered by over 1,000 square miles of 3D seismic with P50 Technically Recoverable Resources estimated at 1.7 billion barrels of oil. An additional 0.4 billion barrels of P50 Technically Recoverable Resources was estimated to apply the Winx-1 Western Acreage acreage blocks, however this number is subject to downward revision following the disappointing Winx-1 well result in March 2019. This work will be conducted over the coming months and an updated resource assessment provided once work is completed.

*Halliburton has the right to "back in" to a 25% working interest into the Alkaid leases which is currently under their consideration.

Glossary

BOPD                    Barrels of Oil per day

API                         The American Petroleum Institute gravity, or API gravity, is a measure of how heavy or light a petroleum liquid is compared to water: if its API gravity is greater than 10, it is lighter and floats on water; if less than 10, it is heavier and sinks

Ft                            feet

 

END

 

 

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