Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) gave investors an update on its efforts to plan and fund the development of Ahpun, one of its oil discovery areas on Alaska’s North Slope.
The company, in a statement, said it is in advanced talks with Alaska Gasline Development Corp (AGDC) over an offtake funding deal – which would see up to 500 million cubic feet of daily gas production earmarked for supply to AGDC.
It envisages initial volumes in 2029, ramping up to full capacity by 2032.
At the same time, Pantheon said it is also talking to two large service companies on mutually beneficial arrangements for vendor-financed oilfield services – whereby service providers arrange for the company (their client) a lending facility to cover the work.
Such an arrangement would reduce upfront cash requirements and allow scheduling of equipment availability, the company highlighted.
Pantheon added that it expects to be able to provide further details of other discussions with vendors in the coming months, whilst noting that there can be no guarantees that either vendor financing or offtaker financing arrangements can be concluded on terms acceptable to each party.
Ahpun planning
Whilst funding talks advance, the company is also working on the development planning for the proposed fields.
The company is presently modelling a start up with a 10,000-foot lateral well through the Ahpun topset horizons, which it says estimates a first-year average production rate of 2,000 bpd of “marketable liquids”.
SLB (Schlumberger) is presently concluding the development plan for the deeper Ahpun Alkaid Zone, Pantheon said, and the consultant is soon expected to turn its attention to the Topsets development plan.
Pantheon said is has identified locations for well pads that it anticipates can access some 481 million barrels of resources across the Topsets and Alkaid Zone.
A series of new resource estimations are anticipated in the coming months, including a report on Ahpun by consultant Netherland, Sewell & Associates Inc (NSAI) – a more detailed account of these were included in today’s statement.
Elsewhere, meanwhile, Pantheon noted that it is expecting to receive from NSAI a recoverable resource update for the Kodiak discovery area, incorporated recently added additional acreage.
Pantheon added that it is presently planning a programme of three appraisal wells for the western portion of the Kodiak area, subject to securing funding.
It is also planning to drill the Megrez-1 well, in the eastern part of the Ahpun Topsets, though these plans are also subject to funding.