Pantheon Resources PLC
06 November 2019
6 November 2019
Pantheon Resources plc
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 provide shareholders with the following update:
Alaskan Update - Farm out process
As previously advised, the process to farm out a working interest in some or all of Pantheon's Alaskan projects is underway. There has been interest from a number of leading domestic and international Oil and Gas Groups in evaluating the opportunity and the Company has also received interest from significant non-industry parties. A number of parties have already visited the data room, with others currently preparing to visit. The scale of the opportunity, i.e. multi billion barrels of Oil in Place, and the geographic location of the discovered resources has attracted the interest of some major companies.
The planning and permitting process for both Alkaid and Talitha wells has already commenced, which would expedite any drilling operation at these locations. Whilst the Talitha exploration well is limited to winter drilling, Alkaid/Phecda wells can be drilled at any time of the year.
Pantheon holds a 90% to 100% working interest ("WI") in c.177,000 gross acres on the North Slope of Alaska, which contains potential for an estimated 1.2 billion barrels of oil recoverable. This includes two discovered oil accumulations which contain significant oil in place resources. Advantageously, the Company's acreage is bisected by both the Dalton Highway and the Trans Alaskan Pipeline System ("TAPS"), the primary distribution network for oil in the state of Alaska. This is a differentiating factor to all other undeveloped oil accumulations in Alaska, and offers significant financial and operational advantages, with the potential for year-round development activity, materially lower capital costs, and shorter time horizons to first production. A successful development well at Pantheon's recent Alkaid discovery, scheduled to be drilled in 2020, could be put onto production soon after completion.
Jay Cheatham, CEO, commented:
"The farmout process is well underway and is keeping us extremely busy. We are very encouraged by the quality of parties who have visited, or are planning to visit the data room in Houston.
"Given the farmout process is a commercially sensitive one we simply cannot discuss it while it is underway. There has been over $200m invested in the project area to date where significant oil accumulations have been identified and a host of exploratory opportunities are continually being evaluated. The farmout process is designed to find a partner to evaluate the commercial potential of these accumulations and to progress the exploration, appraisal and future development efforts.
"Your Company has made some major advancements over recent months. Our successful testing of Alkaid upgraded our P50 Technically Recoverable resource to 100 million barrels of oil, and in the past few weeks we concluded a transaction to increase our working interest in Alkaid/Phecda by one third, to 100%. This transaction delivered Pantheon an additional 25 million barrels of P50 Technically Recoverable Resource.
"We look forward to continuing to update the market as the farm out process progresses."
Pantheon Resources plc +44 20 7484 5361
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate
Arden Partners plc (Nominated Adviser and broker) +44 20 7614 5900
Blytheweigh +44 20 7138 3204
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 90% and 100% of projects covering 177,000 gross acres and covered by circa 1,000 square miles of 3D seismic with P50 Technically Recoverable Resources estimated at over 1.2 billion barrels of oil.
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.
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(END) Dow Jones Newswires
November 06, 2019 02:01 ET (07:01 GMT)