TIDMPANR
RNS Number : 6575A
Pantheon Resources PLC
23 January 2020
23 January, 2020
Pantheon Resources plc
Resource Update
Pantheon Resources plc ("Pantheon" or "the Company"), the
AIM-quoted oil and gas exploration company with several
conventional projects onshore North Slope of Alaska and onshore
East Texas is pleased to provide shareholders with the following
update:
Alaskan Update - Contingent Resource Confirmation
Pantheon confirms receipt of an Independent Expert Report and
Resource Statement from the International Petroleum Consultants Lee
Keeling & Associates, Inc. ("LKA"), on its 100% owned 'Greater
Alkaid' Project (formerly referred to as 'Alkaid/Phecda'). LKA has
great expertise in horizontal multistage reservoir development.
The report confirms a Contingent Resource of 76.5 Million
Barrels of Recoverable Oil.
Definitions referred to in this announcement for Contingent
Resource and Prospective Resource have been prepared under the
Society of Petroleum Engineers ("SPE") standards.
Highlights:
76.5 Million Barrels of Oil ("MMBO") Contingent Resource
(recoverable)
$595 million NPV10 based on modelled 44 wells, and c.70 MMBO (1)
Phase 1 field development over a 20 year term at an oil price of
$55 held flat
$8.50 NPV10 per barrel of oil
Field peak flow rate 30,000 Barrels of oil per day ("BOPD")
Individual well EUR (estimated ultimate recovery) of 2.25 MMBO
per well for 24 wells
The LKA report supports the Company view that Alkaid and Phecda
is one continuous accumulation. Now called "Greater Alkaid"
Located underneath and adjacent to the Dalton Highway &
Trans-Alaska Pipeline (TAPS)
This estimate comprises Contingent Resource only - does not
include Prospective Resource
In addition to providing a Contingent Resource estimate of 76.5
million barrels of oil, LKA modelled a Phase 1 field development,
based upon 24 wells at 2.25 MMBO per well, and a further 20 wells
with the EUR risked at 50%, equating to 1.125 MMBO per well. Their
20-year model estimates an NPV10 of $595 million after production
of 70 MMBO, with an estimated NPV10 of $8.50 per barrel of oil.
Modelled peak field flow rates are 30,000 BOPD. Greater Alkaid's
beneficial location immediately underneath and adjacent to road and
pipeline infrastructure offers significant time and cost advantages
over other projects on the North Slope of Alaska. Having a large
onshore oilfield in this location will allow a phased development
approach minimising upfront capex and producing early cashflow to
fund future development.
Talitha Project - update
In September 2019 the Company advised that it had made material
advancements in its understanding of the Talitha Appraisal
(Brookian) and Talitha exploration (Kuparuk) projects following
detailed analysis undertaken in conjunction with the experts at
eSeis. This work has continued to advance the understanding of the
geology which the Directors believe has the potential to lead to an
increase in estimates for oil in place and recoverable resource at
Talitha in due course. Once the Company has completed its internal
analysis, it will likely engage LKA to complete a Resource
Assessment of Talitha. As analysis is not yet complete, there can
be no certainty of an increase.
Farmout update
The farmout process remains underway with a number of groups
having entered the data room and with a number of others having
expressed interest in entering the data room in the future.
Investor presentation and Q&A session
The board is also pleased to confirm that it will be hosting a
presentation and Q&A session which will be open to all
investors from 9.30am - 11.00am GMT on Thursday, 30(th) January,
2020 at the offices of Bryan Cave Leighton Paisner (BCLP), Adelaide
House, London Bridge, London, EC4R 9HA. The Company presentation
will be made by Bob Rosenthal, Technical Director & Chief
Geologist, Jay Cheatham, CEO, and Justin Hondris, Director, Finance
and Corporate Development.
The presentation will cover, amongst other topics, the results
of the independent experts report and Contingent Resource statement
announced today; an overview of the important strategic acreage
acquisitions (hereafter referred to as the 'Theta West' and
'Leonis' projects) announced in December 2019; the continued
progress at Talitha; and a discussion of the high level strategic
overview of the Company's Alaskan projects presently underway.
A copy of the presentation will be made available on the Company
website following the event.
Publication of Audited Financial Results for the year ended 30
June 2019
Following receipt overnight of the Contingent Resource
Statement, the directors are targeting publication of the financial
results for the year ended 30 June 2019 and a resumption of trading
in the Companies Ordinary Shares on AIM by mid-February, 2020.
Bob Rosenthal, Technical Director, commented:
"Today's announcement is an important milestone for the Company
in that it has endorsed our long-held belief that Greater Alkaid is
a material and valuable asset of the company. Since the successful
production test in 2019, our team has progressed the evaluation of
Alkaid to its current level of certified resources in what should
be a highly profitable project. Its unique location virtually under
the pipeline, and better than expected reservoir properties,
provide increasing confidence of its development as another Alaska
oilfield in this prolific province. I look forward to meeting
shareholders in person next week to showcase the great progress
that we have made."
Jay Cheatham, CEO, commented:
"The report by LKA is a fantastic result for Pantheon and
underpins management's belief that we have a major discovery in
Alaska along the Dalton Highway and Trans Alaska Pipeline. Greater
Alkaid has the potential to offer tremendous economic returns,
estimated in the report at NPV10 of $595 million for Phase 1 and an
NPV10 of $8.50 per barrel of oil. I remind shareholders that a
Contingent Resource (recoverable) is a higher classification of
resource compared to the Prospective or 'Technically Recoverable
Resource' previously provided by the Company, so 76.5 million
barrels of Contingent Resource is something we are very proud
of.
"I am confident that with additional drilling our Contingent
Resources could increase. I am reminded of Prudhoe Bay where the
ultimate recovery (EUR) has over time greatly exceeded original
estimates of oil in place (OOIP) for the field. Good oil fields get
bigger and better over time.
"The Independent Experts Report will enhance our farmout efforts
and bodes well for our other projects where we also intend to
undertake an in depth and independent assessment. This is the first
time Pantheon has undertaken an independent expert report and is
planning to provide other such reports in the future."
-S-
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 (Corporate
Finance)
Aimee Kerslake (Equity Sales)
Blytheweigh +44 20 7138 3204
Tim Blythe
Megan Ray
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 has working interests 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 c.200,000 gross acres and
covered by c.1,000 square miles of 3D seismic.
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
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.
This information is provided by RNS, the news service of the
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END
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