Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) has today revealed an expert opinion that said the Ahpun ‘topsets’ resource, on the west side of the Dalton highway, can be economically developed.
The Alaska-focused oil and gas company, in a statement, announced the results of an initial resource estimate for the western topset horizons in the Ahpun oil and gas field.
Independent consultant Cawley Gillespie & Associates (CGA) estimated some 282.06 million barrels of contingent recoverable resources in the area.
CGA estimated a net present value of $1.74 billion for the western topsets of the Ahpun field, based on an Alaskan (ANS) crude price of $80 per barrel.
It is part of Pantheon's broader assessment of the Kodiak field – of which the Ahpun western topsets and Alkaid horizon have so far been formally estimated – that’s believed to host over 1.5 billion barrels of crude and 6.5 trillion cubic feet of associated gas.
"Cawley Gillespie & Associates have validated Pantheon's assessment that the Ahpun topsets on the west side of the Dalton Highway can be economically developed, even after excluding the potential market offtake for natural gas,” chief executive Jay Cheatham said in a statement.
“[It] underscores our ability to support the in-state phase of the Alaska LNG project, initially with Ahpun volumes and, in due course, Kodiak field resources."
David Hobbs, Pantheon executive chair, meanwhile, added: "We now have independent validation of all the contingent resources we are working to develop, including support for the commerciality of the Ahpun development, which will be first onstream given its immediate proximity to the established pipeline and road infrastructure."
“Validation of Pantheon's natural gas resources, in particular, is of great value as these resources enabled us to develop a strategic relationship with the State of Alaska resulting in the Gas Sales Precedent Agreement that we expect has the potential to lead to a long term take or pay agreement that could be used to support the funding of our post-FID capital costs.”
"We will update the independent assessment of the Kodiak field to evaluate the economics of that development after we drill and test the planned appraisal wells up-dip in the new acreage secured at the last two lease sales, subject to funding."
Pantheon intends to make a final investment decision for field development “at the earliest possible date”, with timelines targeting first production by no later than 2028.