Pantheon Resources is an independent oil and gas exploration and production company incorporated in the UK with a portfolio of high impact projects onshore USA, in both East Texas and the Alaskan North Slope (‘ANS’) with a combined P50 Technically Recoverable Resource estimated to exceed 1.2 billion barrels of oil equivalent. In January 2020 received an Independent Experts Report on 100% owned Greater Alkaid, defining a Contingent Recoverable Resource of 76.5 million barrels of oil with an estimated NPV10 of US$595 million
On the Alaska North Slope, Pantheon holds a commanding 90% - 100% working interest in all of its projects. Such a dominant working interest provides the Company with flexibility to negotiate a suitable farm out deal with potential partners. The enormous size and scale of Pantheon’s Alaskan portfolio has seen it become the primary focus of the Company.
In East Texas, Pantheon holds a 55.1% - 75% working interest in four prospects in Tyler and Polk Counties, East Texas, which host the Eagle Ford sandstone, Austin Chalk, Navarro and Wilcox formations. Pantheon is working towards increasing these to 100%.
Pantheon’s strategy is to maximise shareholder value through strategic drilling (and farm-outs where appropriate) to prove up the assets and to achieve an exit at the highest value. Given its dominant working interest positions in both East Texas and Alaska, Pantheon has the capacity to tactically use farm outs as a method of funding or subsidising future operations, and to partner with strategic partners.
Pantheon is currently engaged in a farmout process for its Alaskan assets. A physical data room has been established in Houston to enable potential partners to undertake due diligence in order to make a potential investment into the project.
Pantheon has a very experienced board, all of whom are shareholders, with a proven track record of success in the industry and in both Alaska and Texas, and a history of building companies for sale.
Alaska North Slope
In January 2019 Pantheon acquired the assets of Great Bear Petroleum ("GBP"), a focused Alaskan North Slope (“ANS”) oil and gas company. The ANS hosts the largest conventional oil and gas accumulations in North America. GBP has been operating on the ANS for almost a decade and has invested over US$200m in evaluating the exploratory potential in its core area. The ANS is experiencing an exploration revival and now boasts among the largest recent conventional onshore oil discoveries made anywhere in the world. These discoveries all tested high production rates of good quality light oil from conventional reservoirs. Drilling by GBP and adjoining operators has highlighted the prospectivity of GBP’s acreage as offering billions of barrels of oil potential in stacked conventional targets across multiple geological plays.
GBP is a large exploration leaseholder where it controls around 200,000 gross acres, most of it contiguous, south of the giant Prudhoe Bay and Kuparuk oil fields which are the largest oil fields in North America. This acreage is covered by c.1,000 square miles proprietary 3D seismic and contains several existing discoveries and a host of world class exploration prospects. Pantheon’s working interest in Alaska is between 89%-100%.
Apart from being a proven prolific oil province, GBP’s acreage position is operationally advantaged by the Trans-Alaska Pipeline System (“TAPS”) and the Dalton Highway which both pass through GBP’s leasehold enhancing near term commercialization opportunities. Such close proximity to infrastructure provides Pantheon with a significant competitive advantage versus other Operators, with lower development and production costs and more rapid commercialization opportunities, believed to result in higher per barrel NPV’s.
In March 2019 Pantheon announced its Alkaid well to be a discovery in the Brookian zone of interest, following successful flow testing which exceeded expectations. This was an excellent result for Pantheon, with positive implications for Pantheon’s other Brookian prospects. In January 2020, Lee Keeling & Associates provided an independent experts report confirming a Contingent Resource of 76.5 Million Barrels of Recoverable Oil. Highlights of the report included:
- 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
- $8.50NPV10 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 December 2019 Pantheon announced the successful acquisition of approximately 27,840 acres in the State of Alaska's North Slope Areawide Lease sale, strategically positioned in two areas contiguous or adjacent to our current acreage on our northern and southwestern boundaries. These acreage additions are covered with proprietary 3D seismic, and were selected as a result of detailed technical work completed by Pantheon and its consultants at eSeis over recent months. Management believe the new acreage offers significant potential for the Company.
The primary target in East Texas is the Woodbine/Eagle Ford sandstone, a formation that is one of the most productive per acre onshore conventional discoveries in recent Texan history, the nearby Double A Wells field. Before drilling Pantheon and the independent Visiongroup of companies, spent three years completing a confidential study of the previously, poorly understood formation in association with the independent Bureau of Economic Geology at the University of Texas at Austin. An attractive feature of these wells is the potential for rapid payback and significant early cashflow generation, allowing in a success case, early wells to provide the cashflow to fund the drilling of subsequent wells.
The first well drilled, VOBM#1 in Polk County, confirmed the presence of both oil and gas in the Woodbine/Eagle Ford sandstone and generated flow rates that appear analogous to those of the Double A Wells field, which has been producing since the mid-1980s. Unfortunately, the steel casing collapsed in this wellbore subsequent to testing, and it is intended this well be plugged back and sidetracked, or a new well drilled immediately adjacent to the location given its outstanding initial performance. The second well, VOS#1 in neighbouring Tyler County, has indicated the presence of another potentially significant reservoir in the Eagle Ford/Woodbine sandstone.
Subsequent drilling in both Polk and Tyler Counties have further enhanced the understanding of the Woodbine/Eagleford sandstone, confirming the presence of sufficient hydrocarbons. The Company believes the acreage offers potential of over over 100 million barrels of oil equivalent, of which Pantheon has a 55% - 100% working interest. Surrounding acreage offers significant additional resource potential. The VOBM#4 well in Tyler County encountered hydrocarbons in 2 additional zones; the Wilcox and the Navarro, both of which could be potentially material for the company, if successfully tested.
Pantheon’s partner in its East Texas operations is the Vision group of companies (“Vision”). The principal and driving force of Vision, Bobby Gray, sadly passed away in 2018 which resulted in a prolonged period of operational disruption and uncertainty. In January 2019 Pantheon acquired a 66% stake in Vision Resources LLC in order to obtain control of that entity.
Unlike onshore shale oil discoveries in the United States, the Eagle Ford sandstone formation can be developed without the necessity for horizontal drilling or "fracking" (unconventional reservoir stimulus), although fracking may be considered if/where considered beneficial. As a result, modelled P50 discovery wells are modelled to be economic at prices below $30 per barrel. The project economics also benefit from being located very close to infrastructure and transportation links in East Texas, with operating costs potentially as low as $10 per barrel of oil equivalent.
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