Pantheon Resources provides operations update

Pantheon Resources plc (Pantheon or the Company), the oil and gas company listed on AIM with a direct 100% interest in a number of oil projects spanning c. 153,000 acres immediately adjacent to transportation and pipeline infrastructure on the North Alaska Slope (ANS), are pleased to announce the following operations update:

Completion of the ice road and mobilization of the drilling rig

The ice road from the Dalton Expressway to the Talitha #A location, as well as the platform to the Talitha #A location have both been completed and the camp set up. Construction of the eight mile Talitha #A ice road to Theta West # 1 location is also approximately 50% complete.

The Nordic Calista # 3 rig, the rig used to drill Talitha #A last year, began its mobilization from Deadhorse, Alaska to the Talitha #A location on January 4 where it is expected to arrive in ‘by January 6. Once there, he will prepare the Talitha #A well for testing operations. Once completed, the rig will mobilize to the Theta West # 1 location and be used for drilling operations. As Talitha #A was drilled last season, a smaller unit of low cost coiled tubing will perform test operations. A link to a video of the platform being mobilized is available to be viewed on https://www.youtube.com/watch?v=-_Pk6ep7IPI

Objectives for the 2022 drilling season

Pantheon’s upcoming program and short-term goal is to prove the resource at Theta West and the commercial potential of its resources discovered at its Talitha and Greater Alkaid projects. Pantheon has a 100% direct interest in each of these projects. Following the recent fundraising, Pantheon is now funded to execute the assessment of these potentially significant resources, currently estimated by management to contain a total of 17 billion barrels of oil in place with an estimated recoverable volume of 2.2 billion. barrels of oil. The 2022 work program will include the following:

I. Test of multiple oil zones confirmed by the Pantheon in Talitha #A;

ii. Drilling of a new well at Theta West – the ‘Theta West # 1’ well; and

iii. Drilling of an appraisal / development well (the “Alkaid 2H” well) in Greater Alkaid, offsetting the Alkaid # 1 discovery well.

Pantheon’s projects are all located on Crown land, in close proximity to established infrastructure, and there are no known environmental barriers to drilling operations. The close proximity to existing pipelines and transportation infrastructure offers significant advantages to the Company in the event of success.

Talitha #A test operations

Talitha #A will test several oil zones that were encountered in 2021, when Talitha #A confirmed the oil accumulations previously discovered by the Pipeline State # 1 well, drilled by Arco Alaska in 1988. Several distinct oil stratigraphic zones have been identified at Talitha #A which were better defined using advanced seismic petrophysics, a technology that integrates petrophysics, geophysics and geology. The Talitha #A well confirmed five potentially productive zones, from the deepest to the shallowest as follows: (i) Kuparuk, (ii) the bottom of the lower basin, (iii) the bottom of the upper basin, (iv) the slope cone and (v) the deltaic shelf margin. In 2021, the Company was only able to test the deepest of these areas, the Kuparuk Formation, as operational issues extended testing operations until the end of the drilling season when operations were suspended. The current testing program will focus on the four shallower Brookian zones normally under pressure (zones (ii) through (v) above) which are all secured behind the casing. These four areas are all geologically independent of the Kuparuk, have all confirmed the presence of light oil and will be flow tested as part of the upcoming program. The Kuparuk, which the Company believes has significant potential, will be the focus of a future well.

The data obtained during the Talitha #A drilling is of exceptional quality and has been analyzed by the geological, geophysical and engineering teams of the Pantheon, supplemented by the independent analysis undertaken by AHS (Baker Hughes). This analysis confirmed the presence of continuous stacked tank zones containing light petroleum (35+ API) over a 3700 foot interval starting at the regional upper seal above the Shelf Margin deltaic reservoir zone up to 10 456 feet. The objective of the test operation is to confirm mobile oil within these formations. Development within any of these formations will be done using horizontal wells positioned in better locations.

Theta West drilling operation

Pantheon estimates that the Theta West Basin (BFF) bottom blower on a 100% basis has the potential to hold 12.1 billion barrels of oil in place and a recoverable P501 resource of 1.41 billion barrels of oil on the area of ​​Pantheon. If successful, Theta West has the potential to be of tremendous value to the Company. Talitha #A confirmed that the Theta West structure was an oil deposit on the distillate sides of the structure. The location of the Theta West # 1 well is approximately 8.5 miles and 1,500 feet structurally higher and “dipping up” from the Talitha #A discovery, in what is believed to be a superior geologic location.

Great Alkaid

The Alkaid project discovered oil in two independent areas; (i) Shallow Brookian (SMD) and (ii) Deeper Brookian (“Alkaid Deep”). The Alkaid # 2H well, scheduled for mid 2022, will be an appraisal well to better define the resource potential of the accumulation, to obtain valuable data on the reservoir and production and, if successful, constitute the Pantheon’s first oil production on the ANS. The Pantheon estimates the resource potential of these two areas combined at 3.5 billion barrels of oil in place with 480 million barrels recoverable. The recent discovery of oil at Talitha #A in the Shelf Margin Deltaic formation enhanced the potential of the Shelf Margin Deltaic to produce oil on the Greater Alkaid structure.

The Company plans to use an early production unit as part of a pilot test operation to generate early cash flow and acquire valuable production data to aid in planning for future development. Greater Alkaid’s oil buildup is found under and adjacent to the Trans Alaska Pipeline and the Dalton Highway, making it particularly ideal for year-round ‘incremental development’, minimizing costs and offering potential for development. early production with significant benefits for other distant oilfield developments on the ANS.

1 Management believes that the company’s resource estimates for Basin Floor Fan meet the classification of contingent resources.

Jay Cheatham, CEO of Pantheon Resources, said:

“It is now full steam ahead on the North Slope of Alaska with the start of a major work program that is both funded and significantly reduced risk after a decade of investment where some $ 300 million has been invested to date. As noted above, the 2022 program is targeting some 2.2 billion barrels of recoverable oil, which has huge implications if successful. All permits for Talitha and Theta West have so far progressed as planned, with all remaining standard permits expected in time for the scheduled start of drilling operations.

“I remind shareholders that Pantheon’s assets are all located on state and non-federal land. Pantheon’s geographic location, in close proximity to existing production and export infrastructure, not only enhances the business potential of its resources, but also minimizes the environmental potential and federal disturbance experienced by other operators on federal lands.We are pleased to have received formal approval of our plans of operations at Theta West and Talitha and to continue to work in working closely with the State of Alaska on all aspects of our operations.

“The work accomplished last winter means that we are returning to the North Slope with our assets significantly reduced in risk. The drilling of two new wells, and possibly a third, as well as the re-entry and testing of the Talitha #A well, has created significant value for our company. I’m proud of our team for the hard work it took to get to this point and look forward to updating the market as drilling begins. “

Read the article online at: https://www.worldpipelines.com/business-news/06012022/pantheon-resources-provide-operations-update/


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