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Pantheon Resources reports planning and funding progress
(Sharecast News) - Pantheon Resources reported progress in its development planning and funding initiatives in an update on Thursday. The AIM-traded company, with a 100% working interest in the Kodiak and Ahpun projects covering 193,000 acres of leases, along with an additional 66,000 acres to be awarded following successful bids in the December lease sales, is strategically located in close proximity to pipeline and transportation infrastructure on Alaska's North Slope.
In terms of development planning at Ahpun, Pantheon reported that initial dynamic modelling for a 10,000-foot lateral well in the Ahpun topset horizons aligned with the its previously-released analysis, projecting over two million barrels per well estimated ultimate recovery (EUR) and an average production rate of 2,000 barrels per day (bpd) of marketable liquids in the first year.
Schlumberger (SLB) was currently concluding the development plan for the deeper Ahpun Alkaid Zone before turning attention to the shallower Ahpun Topsets.
Pantheon's technical team had identified well pad and bottom hole locations to potentially recover 481 million barrels from the Ahpun Topsets and Alkaid Zone.
To expedite financing discussions, Pantheon said it had commissioned independent expert reports (IER) from Cawley Gillespie & Associates (CGA) for Ahpun Topsets and from Lee Keeling & Associates (LKA) for Ahpun Alkaid Zone, with full reports expected shortly.
Regarding the Kodiak and Eastern Extension of Ahpun, Pantheon expected to receive the initial NSAI Kodiak recoverable resource update incorporating new acreage by the end of the first quarter or early in the second.
Winter campaigns were being prepared for up to three appraisal wells in the western portion of the Kodiak field.
Additionally, drilling plans were underway for a Megrez-1 well into the eastern Ahpun Topsets from alongside Dalton Highway.
In terms of funding, Pantheon said it was in advanced discussions with Alaska Gasline Development Corporation (AGDC) to supply natural gas at a base price not to exceed $1 per million Btu, with well tests indicating low carbon dioxide content.
Vendor finance initiatives were also being pursued with two large service companies to reduce upfront cash requirements and provide long-term service contracts.
"We have made considerable progress during the past several months towards accessing funding on the least dilutive basis possible," said executive chairman David Hobbs.
"The competitive advantage of our location and gas composition, which could potentially provide gas for in-State use through Alaska LNG, should allow Pantheon to capture the benefit of reduced numbers (and CapEx) of gas reinjection wells along with a path to low-cost commercialisation of the helium potential now identified in the Kodiak field.
"The updated Independent Expert Report from NSAI on our 100% owned Kodiak project and the two independent expert reports from CGA and LKA have shortened the timeframe for potential partners to fast-track their technical and commercial due diligence to meet our target of concluding non-equity funding arrangements by the end of the second quarter of 2024."
Hobbs said those would be released, along with SLB's dynamic modelling results, when they are received in the coming weeks.
"We will delay completion of NSAI's assessment of Ahpun from its original timetable to incorporate the results of planned further drilling in the Topsets - previously referred to as SMD - and to support the FID for the overall Ahpun Development."
At 1301 GMT, shares in Pantheon Resources were down 1.6% at 26.18p.
Reporting by Josh White for Sharecast.com.
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