Company Strategy

Pantheon’s strategic target is to achieve sustainable market recognition of $5-10/bbl for its discovered contingent recoverable resource of 2 billion barrels of marketable liquids (Company estimate) within a 5 year period.

Pantheon’s current certified contingent resource is 1.04 billion barrels of marketable liquids (oil, condensate and NGLs). In order to achieve this and maximise shareholder value, Pantheon will initially focus on pursuing the early development of the discovered oil resources closest to the TAPS main oil line and Dalton Highway. This type of development using Modular Arctic Production units should achieve positive cashflow that will support development of the discovered resources across the entire Pantheon ANS portfolio. The objective is to achieve sufficient financial strength that Pantheon is not reliant on raising further equity from the stock market or susceptible to opportunistic offers from industry players that seek to acquire the underlying asset value at a deep discount to underlying value. Pantheon’s unique geographic location on the ANS, onshore North America, combined with innovative subsurface and surface production technologies put it in a position to control its own destiny in by achieving low-cost, near-term development options. Global underinvestment in oil and gas exploration over recent years, coupled with record high oil demand, has resulted in a shortage of new project inventory coming on stream in the short to medium term which Pantheon believes creates an opportunity for its 100% Kodiak and Ahpun projects to be globally significant over the coming years.

Having 100% working interest in all its projects gives Pantheon the capacity to tactically use farm outs or other asset-based transactions (including swaps of non-producing assets for cashflow generating assets) as a method of funding future operations with long term partner(s). This is, in addition to considering equity, mezzanine and debt capital facilities supported by potential transition from contingent resources to proven reserves in due course. The guiding principle for the Company’s funding strategy will be to minimise dilution of shareholders’ value exposure in the underlying economic asset. Pantheon has a very experienced board and strong advisory group, with proven track records in the oil and gas industry, and most of who are all shareholders. Pantheon’s Board and management team also have a deep history with oil and gas operations in Alaska and with multi-stage fracked, long lateral completions in a number of basins in North America. Pantheon intends to use unconventional oil production technologies that have proven so successful in the Lower 48 and apply this technology to the reservoirs in Alaska.

The Board of Pantheon believes that its focus on minimising the “cash sink” to generating positive cashflow from its most advantaged assets near infrastructure to underwrite the development of the full portfolio offers investors a unique and attractive opportunity to participate in high impact, risk managed drilling which offers significant potential for value creation.

The illustrative timeline below outlines the key milestones: