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Pantheon Resources (PANR)

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Monday 25 April, 2022

Pantheon Resources

Resource Upgrade

RNS Number : 1302J
Pantheon Resources PLC
25 April 2022
 

25th April 2022

Pantheon Resources

Resource Upgrade

 

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, is pleased to provide a management resource upgrade on the Lower Basin Floor Fan ("LBFF") at Theta West and an Oil in Place estimate on the Slope Fan System ("SFS") at Talitha, in advance of the Shareholder Presentation and Q&A session ("Webinar") to be held at 5:30pm BST on Tuesday 26 April 2022.

 

Highlights

· A significant management resource upgrade in the LBFF at Theta West to 17.8 billion barrels of oil in place ("OIP"), a 61% increase on previous estimates, and a recoverable resource of 1.78 billion barrels as a most likely case, a 48% increase on previous estimates.

Given the discoveries of oil confirmed by testing in the LBFF at Theta West, and previously at Talitha #A, as well as the oil encountered at Pipeline State #1, the Company believes the above estimate could be categorized as a Contingent Resource.

The new discovery of oil in the SFS at Talitha which management believes has the potential to contain 2.2 billion barrels of OIP, opening up another significant development opportunity in and around the current resource base. Additional analysis is required before Pantheon can estimate the recoverable resource in the SFS.

· These resource upgrades will be discussed in the upcoming webinar, along with the expectations for the Alkaid #2 well, planned for July 2022.

 

Resource Upgrades

 

Lower Basin Floor Fan at Theta West #1

 

Pantheon is pleased to report that it has now completed its internal analysis of the LBFF system encountered in the Theta West #1 well. Management estimates the LBFF contains 17.8 billion barrels of OIP and a Contingent Resource (recoverable) of 1.78 billion barrels as a most likely case, both significant increases on previous estimates. There are now three well penetrations into the LBFF all confirming oil, which combined with the high quality 3D seismic provides confidence of the large resource potential of this accumulation . The resource upgrade is mostly derived using new reservoir parameters encountered in the Theta West well and greater confidence about the reservoir in general over this large area.

 

Theta West confirmed the Company's prognosis of greatly improved reservoir quality, and thus a deterministic model was constructed of the reservoir using the reservoir parameters of Talitha #A in the down dip portion of the oil accumulation and reservoir parameters from Theta West #1 in the updip portion of the oil accumulation. The Theta West reservoir is some 1,500 feet shallower and some 10.5 miles in distance from the Talitha location. At tomorrow's Webinar the Company will show a histogram of the reservoir characteristics at both locations, which will pictorially illustrate the improvements.

 

 

Lower Basin Floor Fan Estimates



2021 Programme

2022 W inter Programme

Oil in Place (mmbo)

11,200

17,800

Recoverable Resource (mmbo)

1,200

1,780

 

Prior to shutting in the Theta West #1 well due to the onset of extreme weather, the data obtained during testing had indicated reservoir quality superior to Talitha #A with high quality light oil encountered across the entire section. Samples analysed to date by AHS/BakerHughes, independently contracted to undertake Volatiles Analyses, has also confirmed the presence of light oil within each and every sample taken across the LBFF.   As for all new oilfield discoveries, ultimate commerciality will require long term production testing such as that planned to spud in July at Alkaid #2 and be the first commercial production test of the Brookian sequence in the Pantheon acreage.

 

Slope Fan System at Talitha #A

 

The Company has also completed its initial analysis of the SFS, a secondary target at the Talitha #A well which management estimates to contain 2.2 billion barrels of OIP. Additional analysis still needs to be undertaken before Pantheon can advise on a recoverable resource estimate for the SFS. Further details will be provided in due course.

 

During the 2022 winter testing programme, Pantheon successfully stimulated and flow tested the two lobes of the SFS in the Talitha #1 well, producing high quality c.35 to 38 degree API oil and averaging 45 barrels of oil per day ("BOPD") over a three day test period. 

 

The two SFS lobes are in two distinct trapping systems and suggest very good reservoir properties. The Company's initial analysis suggests that the deeper of the two lobes extends below the Alkaid Deep anomaly and will be assessed in the upcoming Alkaid #2 well, planned for July 2022.

 

Upcoming Webinar

 

During the upcoming Webinar to be held at 5:30pm BST on Tuesday 26 April 2022, management will discuss these latest resource upgrades from the successful Theta West and Talitha drilling and testing operations this season, implications for future project definition and development, as well as next steps in the operational programme including an insight into the Alkaid #2 well which has both important commercial implications via the extended production test but also via the appraisal/exploration potential.

 

The presentation is open to all shareholders and interested parties. Those wishing to participate can register for the Webinar via the link below:

 

https://www.bigmarker.com/share-talk/Pantheon-Resources-Plc-Shareholder-Presentation-and-Q-A-April-2022  

 

Full joining details are available in the previous Webinar announcement, published on 20 April 2022. 

 

Bob Rosenthal, Technical Director, commented, "This season has been a great one for Pantheon resulting in material resource upgrades. Most importantly, our pre drill predictions were well founded and proved in Theta West #1, demonstrating our ability to identify the oil from our high quality 3D seismic and other analytical tools. Jerry Nichols, one of our consulting geophysicists, will explain the upgraded resource numbers tomorrow using a histogram developed by Roger Young from eSeis. What you won't see however, are the 22 maps required to model the reservoir correctly and derive the new 17.8 billion barrels of OIP."

 


Jay Cheatham, CEO of Pantheon Resources, commented,
"The Theta West project continues to improve as we do further technical work, proving itself as a significant discovery with an estimated 1.78 billion barrels of recoverable resource. Coupled with our initial estimate of 2.2 billion barrels of oil in place in the Slope Fan System, this recent analysis further validates the potential impact of our 100% owned projects on the North Slope. We met our expectations of improved reservoir at the updip Theta West #1 location for the LBFF. Tomorrow's Webinar will showcase these results.  In addition to Bob's geologic team discussing the results, Michael Duncan, our VP of Operations & Engineering, will present our analysis of the winter results operationally and plans for continued exploitation beginning with production testing this summer at Alkaid #2. I would like thank shareholders for their continued support and for sharing our belief in the potential of our projects."

 

Glossary

Contingent Resource

Contingent Resources are 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

 

mmbo

Million barrels of crude oil

 

O il in Place

is a specialist term in  petroleum geology   that refers to the total  oil   content of an  oil reservoir

 

S PE

S ociety of Petroleum Engineers

 

 

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 Robert Rosenthal, a qualified Petroleum Geologist, who has over 40 years' relevant experience within the sector.

 

The Resource estimates has been reported in accordance with SPE standards.

 

For further information on Pantheon Resources plc, see the website at:  www.pantheonresources.com

 

The information contained within this Announcement is deemed by Pantheon Resources PLC to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Cautionary Statement: Certain statements and estimates contained in this announcement carry an associated risk of accuracy as such statements and estimates are based upon information available at the time of making such statements. Actual results could differ materially from expectations set out in such statements. Among other factors, this could be as a result of changes in economic, market, geological and political factors, the success of future drilling and geological success, the risk of future drilling changes in the regulatory environment and other government actions, fluctuations in the price of oil and exchange rates, and business and operational risk management.

 

-Ends-

 

 

Further information:

 

Pantheon Resources plc

+44 20 7484 5361

Jay Cheatham, CEO


Justin Hondris, Director, Finance and Corporate Development


Canaccord Genuity Limited (Nominated Adviser and broker)


Henry Fitzgerald-O'Connor,   James Asensio

+44 20 7523 8000

BlytheRay


Tim Blythe, Megan Ray, Alice McLaren, Madeleine Gordon-Foxwell

+44 20 7138 3204



 

 

Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas company with 100% working interests in 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.

 

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.

 

 

 

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