Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF), which owns two assets on Alaska's prolific hydrocarbon-producing North Slope, has reconfirmed it is aiming for final investment decision (FID) on its Ahpun acreage by the end of next year.
The project is host to a 'contingent' 500 million barrels of 35-degree API oil. Contractors are working on a new resource estimate, due sometime in the first half.
Development is expected to cost in the order of $120 million, including $60 million for the first three wells. An update on Pantheon's progress finding the investment required is expected in the 'next few weeks'.
Ahpun is one of two prospects on the North Slope that cover 193,000 acres. The second, Kodiak, is host to a 2C resource of 963 million barrels and is slated for FID in 2028.
The update came alongside the company's results for the six months ended December 31, a period in which it shored up its Alaska position, winning bids for an additional 66,240 acres of leases.
It also had success with the drillbit, testing the shallower 'topsets' in the Alkaid-2 wellbore with 'great success', exceeding Pantheon's expectations and validating the effectiveness of its revised frac design.
"Such engineering improvements are extremely positive for Ahpun development economics, helping to steer our focus towards the Ahpun topsets to benefit from the material improvement in reservoir quality and the superior GOR (gas oil ratio) compared to the deeper ZOI horizon tested previously," said chairman David Hobbs.
Financially, Pantheon was lossmaking in the first half to the tune of $5.7 million, which reflected the investment being made on the ground. As of March 15, cash on hand was $8.7 million.
Its decision to open an office in Houston heralds a listing in the US sometime next year.