AIM-listed Pantheon Resources, the oil and gas company with a 100% working interest in the Kodiak and Ahpun projects, collectively spanning c. 193,000 contiguous acres in close proximity to pipeline and transportation infrastructure on Alaska's North Slope, is pleased to finally share the complete results of its multiyear leasing programme.
Pantheon has been awarded 66,240 acres on the North Slope covering:
- substantially all of the anticipated remaining conventional reservoir potential in the Kodiak Field - pay zone quality is expected to improve as the reservoir become shallower to the north and west of the existing leases. The ultimate resource classification of the 43,200 new acres will be determined following reviews with Netherland, Sewell & Associates, Inc. ("NSAI") and SLB.
- the potential eastern extent of the Ahpun Field (including what is prognosed to be higher quality, shallower reservoirs) covered by the 23,040 acres that could be accessed from the West side of the Sag River using current technologies. The Company believes these volumes would initially meet the definition of Prospective Resources and only be recognisable as Contingent Resources (and eventually Reserves) once well penetrations have confirmed producible hydrocarbons in the identified Shelf Margin horizons.
Pantheon's winning bids averaged $31.83 per acre including fees. When the leases are officially awarded by the State of Alaska, estimated to be in 4 to 6 months' time, they will come with a 10-year initial term, an annual rental of $10 per acre, and royalty rates of 16.67% (20 leases, 28,800 acres) and 12.5% (26 leases, 37,440 acres). The Company has paid an initial deposit to the State of Alaska equivalent to 20% of the bid costs with the remainder payable on official award along with the first year rentals.
Pantheon's Technical Director, Bob Rosenthal, said: 'This is an important result, securing what we expect to be the highest quality areas of the Kodiak and Ahpun Fields at the shallowest depths, and protecting the development schedules for Ahpun and Kodiak by covering the full fields to be included in our requests for development consents from the State of Alaska. Our focus remains on the development of Ahpun with FID planned by the end of 2025 and appraisal of the full potential of Kodiak to support its FID in 2028.'
Finance Director, Justin Hondris, added: 'In the past, we have had to strike a balance between prioritising investments in our existing lease estate and capturing the full extent of our two world class development assets. The soon to be publicly released proprietary 3D seismic data risked opening the area up to competitors before the next lease sale and Pantheon therefore chose to act this year.'
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Source: Pantheon Resources
