Acquisition of Halliburton 25% WI in Alkaid/Phecda
17 October 2019
Pantheon Resources plc
Acquisition of Halliburton's 25% working interest in Alkaid/Phecda
Pantheon Resources plc ("Pantheon" or "the Company"), the AIM-quoted oil and gas exploration company with working interests in several conventional project areas in Tyler and Polk Counties, onshore East Texas, and onshore North Slope of Alaska, is pleased to provide shareholders with the following update:
Increased ownership in Alkaid/Phecda (Alaska) from 75% to 100%
Pantheon is pleased to report that it has executed a contractual agreement with Halliburton to acquire its 25% working interest in the six leases jointly held with Pantheon on the North Slope of Alaska. Under the agreement, which is subject to a customary approval process by the State of Alaska Department of Natural Resources, Halliburton will transfer to Pantheon their entire working interests in the leases in exchange for Pantheon accepting full responsibility for all future lease obligations.
As a result of this transaction Pantheon now holds 100% working interest in the 22,804 acres that make up the Alkaid/Phecda project, and 92% working interest in two additional adjacent leases comprising 11,367 gross acres. Upon the conclusion of this transaction, Pantheon will hold a 90-100% working interest in c.177,000 gross acres containing potential for 1.2 billion barrels of oil recoverable, located in close proximity to the North Slope of Alaska's major highway and pipeline infrastructure. In addition, Pantheon holds 10% working interest in the Winx acreage, covering an additional c.23,000 gross acres.
Jay Cheatham, CEO, said:
"This is great news for Pantheon shareholders. Alkaid is a tremendous success for our Company, and this transaction delivers us 100% ownership of the Alkaid/Phecda project which contains an estimated 900 million barrels of oil in place, and a P50 Technically Recoverable Resource estimated at 90-135 million barrels of oil based upon primary recovery assumptions of 10-15%. 100% ownership is important to our farm out discussions. The location of this project, sitting immediately below and adjacent to the Dalton Highway and Trans Alaskan Pipeline offers significant cost and timing advantages over other North Slope Projects, with the possibility of year round activity and targeted first production as early as 2020."
"Today's news follows the similarly important news only last month where we advised shareholders of the material advancements in the potential of our nearby Talitha Appraisal (Brookian) and Talitha Exploration (Kuparuk) projects, following a period of extensive analysis with the technical experts at eSeis."
"Our data room is open and we are working to find the right partner for the development of these significant projects."
Pantheon Resources plc
+44 20 7484 5361
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate Development
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Arden Partners plc (Nominated Adviser and broker)
+44 20 7614 5900
+44 20 7138 3204
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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 held a 50% to 75% working interest ("WI") 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 prospects covered by circa 1,000 square miles of 3D seismic with P50 Technically Recoverable Resources estimated at over 1.2 billion barrels of oil.
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 management 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 London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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