Q&A

Company Q&A

 

What is the latest update on the Alaska LNG Project?

Pantheon’s role in the AK LNG project is the proposed supply of gas for in-State use up to 500 million cubic feet per day (mmcfd) during the initial 20 years of operation. In January 2025, the AK LNG project sponsor, the Alaska Gasline Development Corporation (AGDC) announced that it had entered into an exclusivity agreement and term sheet with Glenfarne that, if finalized, would result in Glenfarne becoming the project lead and majority member of the project owning company, 8 Star Alaska, LLC.

In mid 2024, Pantheon announced it had entered into a Gas Sales Precedent Agreement (GSPA) with 8 Star Alaska. Under a full Gas Sales Agreement (GSA), which the parties committed to use their good faith efforts to finalise by 30 June 2025, Pantheon would provide an initial 20-year supply of its low CO2 content natural gas into the proposed 800 mile gas pipeline to transport natural gas from the Alaska North Slope down to tidewater at Nikiski, Alaska. The agreed price would be $1/mmBtu, with options under which, in exchange for additional consideration, the gas price could be reduced, potentially to zero. Phase 1 of the AK LNG project, building the pipeline from the North Slope to Southcentral Alaska, could proceed prior to commitments on subsequent LNG components in order to relieve an impending energy crisis in Southcentral Alaska (including the city of Anchorage).

Late 2024 and early 2025 saw positive momentum on the Phase 1 project with Wood Mackenzie presenting a report at the request of the Alaska Legislature where it estimated a net benefit of US$16 billion to Alaska resulting from the proposed pipeline when compared to other possible solutions, such as imported LNG. Furthermore, following President Trump’s inauguration, he immediately enacted an Executive Order titled “Unleashing Alaska’s Extraordinary Resource Potential” (https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-alaskas-extraordinary-resource-potential/ ). The Order states, amongst other thing, that the USA will “prioritize the development of Alaska’s liquified natural gas (LNG) potential, including the sale and transportation of Alaskan LNG to other regions of the United States and allied nations within the Pacific region.”  Additional resources are available, including the Final Wood Mackenzie Alaska LNG Phase 1 Economic Validation Report, from the AGDC website.

Pantheon whole-heartedly supports the AK LNG project, including working with the State of Alaska to enable the commercialisation of the helium potential of the Kodiak field, for the benefit of Alaskans and to support the funding and development of Pantheon’s core oil projects on the North Slope.

Which gas is committed to the GSPA that supports Phase 1 of the Alaska LNG project? 

Gas produced from all of Pantheon’s leases (including Ahpun East leases) would be dedicated to the proposed Gas Sales Agreement with the AK LNG Project. In addition, Pantheon could sell any gas that exceeds the proposed contracted volumes that, in the highest case of 500 mmcfd for 20 years, would amount to 3,640 billion cubic feet (Bcf) out of a current estimate that exceeds 6 trillion cubic feet (Tcf). The Pantheon gas resources include Kodiak, the Ahpun West topsets, the Alkaid horizon.

Do you have an estimated timeline for the US listing? 

The Company has maintained its efforts to prepare for a US listing, including considerations to ensure we protect all of its shareholders (including those in the UK). The precise structure and timing are subject to the counsel of expert advisors retained by Pantheon but the underlying work to ensure readiness to capture the optimum market window is being done, with a high level target of late 2025 to early 2026.

What will happen to Pantheon shares held on AIM following a US listing?

The Company has consistently said that it will seek to achieve the optimum outcome for its current shareholders and that means the owners of the shares listed on London’s AIM. Holders of PTHRF are, in fact the owners of AIM shares through the trustees that commit to hold a share of Pantheon Common Stock for each PTHRF unit held. A US listing will not mean the immediate cancellation of the UK listing because that would not benefit shareholders that are unable to hold a NASDAQ or NYSE listed share.

How can investors be confident in the independently verified resources of 1.57 billion bbls of marketable liquids and 6.6Tcf of natural gas?

These figures for Kodiak, the Ahpun western topsets and the Alkaid Horizon within the western Ahpun area are the sum of the best estimates prepared by three highly regarded independent reserve engineering firms;

1. Netherland Sewell & Associates
2. Cawley Gillespie & Associates
3. Lee Keeling & Associates

Additionally, Pantheon has benefitted from technical input of other leading experts including AHS (providers of Rock Volatiles Stratigraphy or RVS), eSeis (AVO and seismic petrophysics) and SLB (static and dynamic reservoir modelling, subsurface development planning etc) among others to support management estimates.

Following the issuance of $35M of convertible bonds in March 2025, how will the Company finance operations before reaching breakeven?

The Company is reviewing all options to finance the development of the assets to achieve financial self-sufficiency in the least dilutive way possible. Whether there is dilution at the asset (e.g. farm in), project financing or any other of a range of options, the proportion of the value retained by existing shareholders is the primary concern of management. In July 2025, $6.5M of these bonds were redeemed, bringing the principal amount oustanding on the bonds to $28.5M.

What oil prices are you modeling for your future profitability forecasting?

Pantheon uses a range of oil prices and other macroeconomic inputs to assess both the value targets outlined in the Company's strategy and the potential cash generation from its operations. The likely break even oil prices that deliver a 20% rate of return are in the $35/bbl range and cash-on-cash breakeven is in the $25/bbl range.

Does Pantheon still target market recognition of $5-$10 per barrel, or is there another metric you are evaluating?

Pantheon has put delivering shareholder value at the heart of its strategy and continues to focus on Ahpun and Kodiak developments to deliver free cash flow generation in the near term. The valuation of $5-10/bbl is an indicative metric to demonstrate value from the Company’s resources relative to its current market capitalization and that target is unchanged, but ultimately differentiated total shareholder return is the objective.

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Development Risks, Well Results and Flow Testing - Dubhe 1

 

What are the key risks investors should be aware of in successfully developing the resource over the next 12 months, and how are you mitigating them?

The main uncertainty for the near term remains the specific flow characteristics of the Ahpun SMD-B reservoir. Pantheon has already demonstrated a working petroleum system, with hydrocarbons brought to surface in multiple penetrations, so the remaining risk is centred on sustained reservoir performance.  The complete production profile: pressures, rates, compositions, and gas-oil ratios, is not yet known with precision. Dubhe-1 was drilled specifically to obtain this data, which will inform well placement and surface facility design.

Some of the SMD-C high case area seems to be outside of our lease boundaries. What are the implications of this?

The areas of the upside case that are outside the lease boundary were not included in the resource assessment and are probably too thin to be developed in isolation for the time being. If a third party were to lease those acres, Pantheon would benefit commercially from co-operating in providing processing and transportation services on a tariff basis.

What IP30 or flow rate guidance can you provide, and how will success be defined for Dubhe-1?

Pantheon has not issued guidance on expected flow rates. For context, Alkaid-2 achieved an IP30 of 505 bpd (oil + NGL) from the lateral in the Alkaid horizon in 2022. A single stage frac in the topset SMD-B horizon produced 140 bpd of marketable liquids in 2023. Dubhe-1 results will be published as soon as reliable data is available. Success will be judged on whether Dubhe-1 demonstrates sustained commercial flow defined as rates that would support development when scaled to full-length laterals. Scaling to 10,000 ft laterals and multiple wells will be modeled once Dubhe-1 flow rate and fluid composition data are available.

When will flow results be available, and how long will testing last?

Flow back will begin immediately after stimulation is completed. Results will be released as soon as reliable data is available. A testing period of 30–90 days is typical for appraisal wells in Alaska and we are planning on that basis. We are currently mobilising equipment and will share the completion programme when available.

How will you be approaching testing duration & gas handling throughout the process?

Flow back will begin immediately after stimulation. Alaska allows flaring, subject to first obtaining permits during appraisal.  Limitations on gas handling are not expected to constrain oil rates through the 30-90 day testing period.

How will you manage water production and potential frac sand issues during Dubhe-1 testing?

The completion program uses a blend of 40/70 mesh and 100 mesh sand.  This has been chosen as the right blend for well performance and along with improved operating practices will mitigate prior sand flow-back issues as seen in the Alkaid-2 lateral. Produced water will be trucked to a disposal facility during testing and reinjected.

What reservoir qualities have you encountered to date?

Logs indicate reservoir qualities (e.g. porosities, saturations and interpreted permeabilities) are consistent with Pipeline State-1 and Company (and SLB) pre-drill modeling. There is no indication that fluid properties, including the composition of the associated gas are any different than elsewhere in the Ahpun field. Flowing oil, gas  and water together is expected, as in prior wells.

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Facilities, Infrastructure & Development Planning

 

How will you integrate Alkaid facilities with Dubhe-1 testing?

Pantheon is exploring the most cost-effective option, including repurposing Alkaid facilities, as part of its strategy to maximise capital efficiency and minimise upfront capex. There are no plans for a near term pipeline to Alkaid, nor would trucking unprocessed fluids be a viable course of action.

If Dubhe-1 becomes a production well, how will NGLs be captured alongside crude oil?

NGL capture depends on surface facilities. Once Dubhe-1 data is available, Pantheon can design stabilization systems to optimize yields.

How many wells are contemplated from the Dubhe pad, and under what conditions would wine-racking be considered?

The Dubhe pad was designed with capacity for multiple wells.  The number drilled will depend on the nature and timing of the next reservoir targets. Wine-racking (stacked laterals) would only be pursued if justified by economics but are expected where there are stacked pays or thick reservoir intervals (as encountered in Dubhe-1).

What is the early development plan for rigs, drilling sequence, and scaling to full-length laterals?

Illustrative charts were shared (Nov 2023 and again in this webinar). Detailed sequencing of rigs, well count, and ramp-up will be refined based on Dubhe-1 data. Scaling from the 5,200 ft lateral to a 10,000 ft lateral will follow standard industry practice.

How much cost does Pantheon expect to reach first oil, and what are the main cost variables?

Guidance remains: ~$150m from FID to first oil, and ~$300m total to reach self-sustaining cash flow. Any updates will be disclosed promptly.

Which big pieces of equipment/materials (“long-lead items”) do you need to order right away, and how long do they take to arrive?

As shown in the webinar, we have an integrated plan that includes engineering, regulatory and associated long leads on the path to FID.  In addition, it was also mentioned in the webinar that the flow test data from Dubhe-1 will be instrumental in choosing the correct long lead equipment.  Generally, rotating equipment (compressors and power generation) have the longest lead times. However, further development planning will identify the critical paths and dictate contracting strategy (buy vs lease etc).

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Financing, Partnerships & Commercial Strategy

 

Have other companies shown interest in farm-ins or strategic partnerships, and how are you planning to fund near-term development?

Pantheon does not comment on ongoing discussions. Funding paths include strategic investment and off-taker financing, among other options. Our objective is to secure capital in a manner that minimises value dilution while ensuring timely development funding.

What is the status of your Gas Sales and Purchase Agreement (GSPA) with 8 Star Alaska, and when could revenues begin?

Pantheon expects to convert its GSPA with 8 Star Alaska into a take-or-pay contract in a time frame consistent with AKGL FID. The Company would not enter into a contract that contains delivery obligations (consistent with the buyer’s volume commitments) until testing of the Dubhe-1 well confirms long term deliverability. Previous guidance has been that such a contract would be capable of supporting up to $250m in project debt based on the expected build up to plateau rates. Gas revenues can only commence once Alaska LNG Phase 1 is operational.

Can you comment on your cash position and financing plans?

Pantheon will disclose financials as required but will not provide running commentary in-line with public company best practice. Near-term development funding will be addressed once Dubhe-1 results are known.