TIDMPANR

RNS Number : 3886D

Pantheon Resources PLC

25 June 2019

25 June, 2019

Pantheon Resources plc

Corporate Presentation June 2019

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, announces that it is commencing its first US investor roadshow subsequent to the acquisition of the Alaskan assets of Great Bear Petroleum in January 2019. An updated copy of the investor presentation will be posted to the Company's website at www.pantheonresources.com

Updated Corporate Presentation - key highlights

Alaskan Operations

The Company confirms that the farmout process for its Alaskan assets is planned to commence in Summer 2019. Subject to successful completion of farmout discussions the Company aims to drill 2 wells in Winter/Spring 2019/2020 (one in the 'Talitha Appraisal' project and one at the 'Alkaid/Phecda' project) with first production possible in 2020 or 2021, dependent on timing of farmout negotiations and drilling. The Company confirms it has received unsolicited enquiries from interested third parties.

Following the announcement on 6 June 2019 of the interpretation of the discovery at Alkaid/Phecda the Company's confidence has improved in its interpretation of the analogous Brookian formation in the Talitha prospect, upgrading it to Appraisal status. Accordingly, Talitha Prospect will now be referenced in two parts; (1) Talitha Appraisal - targeting the Brookian fans, and (2) Talitha Exploration - targeting the Kuparuk and Lowstand Shelf Margin Deltaic formations. A summary of the Company's prospect summary is presented below:

PANTHEON - ALASKAN PORTFOLIO

P50 Technically Recoverable Resource estimate

 
 Anticipated     Project                         Oil      Recoverable   Possible   GBP Interest(6) 
  Program(5)                                      in       mmbl (7)      Zones 
                                                  Place 
                                                  mmbl 
                                                  (7) 
                                                                                                     Confirmed 
                                                                                                     Brookian 
                                                                                                     discovery. 
                                                                                                     Seeking farm in 
                                                                                                     partner. 
                                                                                                     First production 
                 Alkaid          Appraisal/                                                          possible 
 2020/2021(1)     & Phecda        Development    900      90-135        1          75%-100%(2)       2020/2021.(1) 
                --------------  --------------  -------  ------------  ---------  ----------------  ------------------ 
                                                                                                     Talitha's (3) 
                                                                                                     Brookian zones 
                                                                                                     contain 
                                                                                                     900 million bbls 
                                                                                                     discovered 
                                                                                                     OIP with 
                 Talitha                                                                             estimated 10-15% 
 2019/2020        Appraisal      Appraisal       900      90-135        3          90%               recovery factor. 
                --------------  --------------  -------  ------------  ---------  ----------------  ------------------ 
                                                                                                     1.7 billion bo 
                                                                                                     (OIP) 
                                                                                                     exploratory 
                                                                                                     upside in 
                 Talitha                                                                             2 additional 
 2021+            Exploration    Exploration     1743     373           2          90%               formations.(7) 
                --------------  --------------  -------  ------------  ---------  ----------------  ------------------ 
                 Theta 
                  Exploration 
                  (Brookian 
                  Basin                                                                              2 zones, Kuparuk 
                  Floor                                                                              & Brookian 
 2021+            Fan)(4)        Exploration     3790     600           2          90%               Basin Floor. 
                --------------  --------------  -------  ------------  ---------  ----------------  ------------------ 
                 Megrez                                                                              Toe Thrust 
                  Exploration                                                                        Anticline 
                  (3) (Toe                                                                           prospect near 
                  Thrust                                                                             pipeline 
 2021+            Anticline)     Exploration     396      59            1          90%               & highway. 
                --------------  --------------  -------  ------------  ---------  ----------------  ------------------ 
 Total 
  barrels 
  (bn)                                           7.7      1.2-1.3       9 
                                                -------  ------------  ---------  ----------------  ------------------ 
 

Pantheon has over 1000 square miles of proprietary 3D seismic with a host of additional "leads" to be matured...

Footnotes

(1) Subject to successful farm out (2) Halliburton has a 25% back-in right, if exercised, Pantheon's working interest would reduce to 75% (3) The reduction in Megrez resource reflects acreage which has not been renewed (4) Refer to risk factors for detail on Theta (5) Anticipated drilling programme is for guidance only and subject to successful completion of a farm out and therefore subject to change (6) Pantheon holds Great Bear leases which have royalty rates ranging from 12.50% to 16.6% and an overriding royalty interest of 1.61% on six of its leases. There is also a 1% ORRI royalty to eSeis Inc (7) OIP Management estimate.

Other than the revision to P50 Technically Recoverable Resource following drilling of the Alkaid and Winx wells, the only other change is a reduction at Megrez from 99 to 59mmbo, reflecting acreage which was voluntarily not renewed. Given lease positions are for fixed terms which decay over time, Pantheon considers it prudent to actively manage its acreage position to prioritise its high grade acreage, whilst preserving its capital position. Acreage which is unrenewed can be bid for at subsequent lease sales if considered appropriate.

East Texas Operations

Pantheon's technical team has commenced a full and comprehensive review of the East Texas acreage and has reengaged with the Bureau of Economic Geology at the University of Texas who were involved in the previous 3+ year regional geological study of the project. This work is presently underway and a decision will be made as to the location of the next well at the conclusion of this work.

The prospects in East Texas are located in a region of abundant infrastructure and a successful result at the proposed VOBM#1 sidetrack well could be brought into production within days. The original VOBM#1 well tested at 6000mcf/d natural gas and 500 bopd before suffering a suspected collapsed casing. Recent leasing in East Texas has been 100% by Pantheon and the acquisition of 2/3 of the shareholding of the Vision had given Pantheon management and operational control. Having paid 100% of all Vision costs for the past year, unless Vision can repay those costs and pay their pro rata share of future drilling and operating costs, Pantheon will default to an effective 100% working interest in the East Texas prospects. Any changes to the resource position reflect the current leasing position. A summary of the Company's prospect summary is presented below:

PANTHEON - EAST TEXAS PORTFOLIO

P50 Technically Recoverable Resource estimate

 
 Project Area(1)      Includes    PANR working   Oil     Gas Bcf   Combined    Potential Vertical 
                                   Interest       Mmbo              Mmboe(3)    Wells 
                                   (2) 
 West AA Discovery    VOBM#1 
  Polk County          well       100%           7       173       36          Up to 23 
                     ----------  -------------  ------  --------  ----------  ------------------- 
 Core Offsets 
  Projects B&C 
  Tyler County                    100%           13      302       63          Up to 40 
                                 -------------  ------  --------  ----------  ------------------- 
 Prospect D 
  Polk County                     100%           4       105       22          Up to 14 
                                 -------------  ------  --------  ----------  ------------------- 
 Austin Chalk                     100%           4       89        18          Up to 18 
                                 -------------  ------  --------  ----------  ------------------- 
 TOTALS                                          28      669       139         Up to 95 
                                 -------------  ------  --------  ----------  ------------------- 
 

Footnotes

(1) Unrenewed leases which remain available for renewal contain the potential to increase this to 225mmboe. Additional resource potential remains in other identified leases. Pantheon will continue to manage its leasehold interests strategically giving consideration to regional drilling activity and leasehold periods, there is no guarantee that these leases will be renewed or on the terms on which they may be available for renewal. Excludes Wilcox and Navarro (2) Having paid 100% of all Vision costs for the past year, unless Vision can repay those costs and fund their pro-rata share of future drilling and operating costs, Pantheon may be entitled to default to an effective 100% working interest in the East Texas prospects. (3) Natural gas converted to boe at ratio of 6mcf:1boe

Jay Cheatham, CEO, said: "Since completing the acquisition of the Great Bear Alaskan portfolio in January of this year we were almost immediately involved in drilling operations. It was only earlier this month that we were in a position to complete our interpretation of the confirmed discovery at Alkaid/Phecda and to understand the extremely positive implications that result has had for our company. Our estimated P50 Technically Recoverable Resource at Alkaid/Phecda is estimated at 90-135mmbo and our preliminary modelling estimates NPV10 per barrel of oil in the ground to be in the range of $7 - $12."

"I have long been looking forward to introducing our story to the USA investment community who have a great familiarity with Alaskan assets. We have made an extremely exciting discovery and have already modelled conceptual development plans which we will be sharing with potential farminees during the farmout process. Our favourable location adjacent to the pipeline and main highway creates the possibility for first cashflow in 2020/2021 subject to a successful farmout."

-ENDS-

Further information:

 
 Pantheon Resources plc                               +44 20 7484 5361 
 Jay Cheatham, CEO 
 Justin Hondris, Director, Finance and Corporate 
  Development 
 
 
 Arden Partners plc (Nominated Adviser and broker)    +44 20 7614 5900 
 Paul Shackleton 
  Daniel Gee-Summons 
 

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 held a 50% to 75% working interest ("WI") 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. Pantheon has the ability for this working interest position to increase to 100% should the minority partner not be in a position to meet its pro rata share of future drilling and operating costs.

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 circa 1,000 square miles of 3D seismic with P50 Technically Recoverable Resources estimated at over1.2 billion barrels of oil excluding the Winx Prospect and the West Sak and Ugnu formations.

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.

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 Jay Cheatham, a qualified Chemical & Petroleum Engineer, who has over 40 years' relevant experience within the sector.

Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons. The announcement contains management estimates of possible valuations based on certain assumptions based upon information available at the time of writing and relating to a future period and, accordingly, they are not guaranteed and are subject to change. Estimates and assumptions underlying any such valuations are inherently uncertain, are based on events that have not taken place and are subject to economic, competitive and other uncertainties and contingencies beyond the Company's control. It is emphasised that the valuations, which are unaudited projections, do not constitute any form of forecast, whether of cash, profit or otherwise.

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.

   NPV                 Net Present Value 
   ZOI                   Zone of interest (primary target) 

Gross pay That portion (the overall interval) of a reservoir that contains economically recoverable reservoir.

Net Pay That smaller section of Gross Pay that meets further criteria for pay such as permeability & hydrocarbon saturation.

   Mmbo               million barrels of oil 
   EUR                 Economic Ultimate Recovery 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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June 25, 2019 10:25 ET (14:25 GMT)

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