Pantheon Resources, the AIM-quoted oil and gas company with a 100% working interest in all of its oil projects spanning c. 193,000 acres adjacent and near to transportation and pipeline infrastructure on the Alaska North Slope ('ANS'), has announced that it has formally accepted and paid for the award by the State of Alaska Department of Natural Resources (DNR) for the 39,540 acres that it was the successful bidder of in last year's state lease sale. The Company awaits formal granting of the leases from the DNR, expected in the near term, subject to standard formalities.
25,460 acres of this award is the northern extension (the Chimney) and updip portion of our Theta West Basin Floor Fan. 14,080 acres of the award fills in around Pantheon's Alkaid and Talitha Units along the Dalton Highway and Trans Alaska Pipeline. The new acreage covers an extension of the existing discoveries which Pantheon was able to delineate off its existing proprietary 3D seismic. Whilst a full evaluation of this new acreage is ongoing, Pantheon expects an upgrade in its resource base from this addition of new acreage in due course. In December 2022, SLB completed phase 1 of its Static and Dynamic reservoir model where it ascribed 10.9 billion barrels of oil in place to the portion of the Basin Floor Fan ('BFF') complex within Pantheon's existing leases. The extension into this new acreage was not part of the original SLB estimates.
The BFF resources in this additional acreage are structurally higher, or 'updip' from the Theta West #1 discovery well. Being structurally higher in shallower reservoir depths yields an expected improvement in the reservoir properties because of less compaction due to a shallower Dmax (Maximum Depth of Burial). The expected improvement in reservoir qualities should lead to increased recovery and better reservoir productivity. The Company intends to test the BFF reservoir in these new leases at a depth of approximately 6,200 feet, some 750 feet higher than where it was discovered in Theta West #1, in the next Theta West appraisal well. Shallower drilling targets reduce drilling costs and, combined with expected higher productivity, should enhance the economics of any development in this location. The Theta West #1 well demonstrated that the Company's pre-drill expectation for the northern extent of the accumulation was likely too conservative and hence the move to secure the additional leases in what should prove to be the best quality resources in this giant discovery.
SLB will incorporate these additional resources into their models, and Netherland Sewell & Associates will incorporate these additional resources into their assessment of Contingent Resources on the Theta West and Alkaid projects, expected over the summer (Theta West), autumn (Alkaid), which will represent the first independent assessment of the recoverable resources identified by Pantheon's appraisal programmes over the past two and a half years.
Webinar
A webinar is scheduled for late June/early July to present an overall plan for Pantheon and the following:
1. Discussion on Pantheon's corporate strategy to deliver greater value out of its significant resources including a discussion of corporate and operational initiatives.
2. Discussion on scope for potential resource upgrades associated with this additional (new) acreage.
3. Discussion on findings from further analysis of Alkaid #2 and the Company's assessment of ultimate recoveries based on Alkaid #2 production and potential for future wells.
4. Discussion on initiatives for improvements to operational performance and cost control, including an introduction to recent key hires. The discussion will include an analysis of well cost of Alkaid #2 and steps to work towards a targeted $13 million cost per development well.
5. Discussion on Frac design improvements based on Alkaid #2 results.
6. Discussion on data expected from the re-entry completion and production test at the SMD horizon at Alkaid #2.
The Company will provide an update at a later date regarding the date for the webinar.
Jay Cheatham, CEO of Pantheon Resources, said: 'Pantheon will soon have c. 193,000 acres under lease with a material resource base in the billions of barrels. In the past we have limited our public profile to reduce competition for offset acreage while we acquired the current acreage position. Pantheon and its predecessor Great Bear have made significant investments over the past decade securing this vast acreage position, assisted through the advantage of having sole use of c. 1,000 square miles of high quality 3D seismic. Having now secured the desired acreage, Pantheon now intends to increase the profile of its project geology without fear of competition and to assist in attracting potential farm-in partners. This process commenced last week where AHS/Baker Hughes presented a case study using the Theta West volatiles analysis to the Society of Petroleum Engineers (SPE) Western Regional Meeting in Anchorage. We will also begin participating in other relevant industry meetings to raise the profile of the assets.'
Source: Pantheon Resources
