Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) has expanded its footprint in Alaska, picking up some 66,240 additional acres on the North Slope.
The new acreage covers substantially all of the anticipated remaining conventional reservoir potential in the Kodiak Field.
Significantly, the company noted that the quality of pay zone is expected to improve as the reservoir become shallower to the north and west of its existing leases – so, the addition of the remaining part of the field area is an important development.
Pantheon said its consultants Netherland, Sewell & Associates and SLB will review the acquired acreage, ahead of a new resource determination.
As well as the extra Kodiak acreage, the company noted that it has also gained leases covering the potential eastern extent of the Ahpun field, similarly spanning an area that is expected to have higher quality, shallower reservoirs. Here, it has added 23,040 acres.
"This is an important result, securing what we expect to be the highest quality areas of the Kodiak and Ahpun Fields at the shallowest depths, and protecting the development schedules for Ahpun and Kodiak by covering the full fields to be included in our requests for development consents from the State of Alaska,” technical director Bob Rosenthal said in a statement.
“Our focus remains on the development of Ahpun with FID planned by the end of 2025 and appraisal of the full potential of Kodiak to support its FID in 2028."
Justin Hondris, Pantheon's finance director, added: "In the past, we have had to strike a balance between prioritising investments in our existing lease estate and capturing the full extent of our two world class development assets.
“The soon to be publicly released proprietary 3D seismic data risked opening the area up to competitors before the next lease sale and Pantheon therefore chose to act this year."
Pantheon paid $31.38 per acre, including fees. Once ratified, expected in four to six months, the new licences will come with a 10-year initial term, with a $10 per acre annual rental fee and carry a royalty rate of 16.67%.