Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) has unveiled the latest significant estimate of resources in Alaska, with an independent consultant detailing the Ahpun field specifically.
According to a report by consultant Lee Keeling & Associates (LKA) the Alkaid horizon at the Ahpun Field currently has reserves amounting to 5 million barrels of oil reserves and 27 billion cubic feet of natural gas.
The reserves are confined to the hydrocarbons in the immediate vicinity of the company’s Alkaid-2 well drilled in 2022.
Meanwhile, LKA estimates contingent resources totalling 74 million barrels of ‘marketable liquids’ and 396 billion cubic feet of natural gas.
LKA’s ‘high case’ estimate scenario, brings the figures up to 123 million barrels and 634 billion cubic feet.
Pantheon described the Alkaid as “the smallest and deepest” development candidate in its portfolio, and, also noted that it has poorer reservoir quality than its other reservoirs.
But, significantly, Pantheon highlighted that Alkaid has the advantage of its immediate proximity to pipeline and road infrastructure and that creates optionality for early economic development.
"This is an important result for our strategy to move the Ahpun and Kodiak Fields through development to production over the coming years,” executive chair David Hobbs said in a statement.
“The confirmation that the Alkaid horizon, the most marginal of the resources appraised on our Alaska North Slope acreage, is modelled by the Independent Experts to deliver real rates of return exceeding 20%, is fantastic news for our development planning.”
Hobbs added: “It's important to remember that both the Ahpun topsets and the newly awarded Ahpun Eastern Extension both offer far superior reservoir properties and are similarly located in close proximity to the pipeline and road infrastructure.
“There are material synergies to be exploited in development, potentially further enhancing expected returns.”
Pantheon is aiming to reach a final investment decision for the Ahpun field by the end of 2025.
“Jay (Cheatham), Bob (Rosenthal) and the team are putting in the hard yards to line up all the pieces necessary to deliver our strategic goal of achieving sustainable market recognition of $5-$10 per recoverable barrel by 2028,” Hobbs added.
He noted also that Pantheon is awaiting a separate assessment of a different Ahpun reservoir zone, the ‘Ahpun Topsets’, in the coming weeks.