10 April 2024 

Pantheon Resources plc  

Webinar and update   

Pantheon Resources plc (AIM: PANR) ("Pantheon" or "the Company"), the oil and gas company with a 100% working interest in the Kodiak and Ahpun projects, covered by 193,000 acres of leases with an additional c. 66,000 acres to be awarded following successful bids in the December 2023 lease sales, all in close proximity to pipeline and transportation infrastructure on Alaska's North Slope, confirms that as previously announced, a webinar presentation and Q&A will be held at 5.00pm British Summer Time today and is open to all shareholders and other interested parties (the "Webinar"). Registration details can be accessed at: https://www.investormeetcompany.com/pantheon-resources-plc/register-investor

A copy of the PowerPoint presentation to be delivered during the Webinar and a recording of the webinar will be uploaded to the Company's website at https://www.pantheonresources.com/ once available. 

About the Webinar 

In this Webinar, the management team will provide further context on the newly released Independent Expert Report ("IER") on the Kodiak Field by Netherland, Sewell & Associates ("NSAI"), Pantheon's newly released management resource estimate on the new leases for the Eastern extension of the Ahpun field, modelled individual well economics, together with a detailed Q&A session. The presentation will address the following, including certain updated information:    

1.    NSAI Report Summary and Appraisal Upside 

2.    Additional IERs presently underway on Ahpun

3.    Modelled Individual well economics and commerciality

4.    Pantheon management resource estimates - Ahpun project - Eastern Topsets

5.    Discussion on opportunity for non-equity dilutive funding backed by potential gas sales to in-state consumers through the AGDC proposed gas pipeline

6.    Discussion on potential Helium opportunity

7.    Q&A

Current Resource Base for Pantheon Leases in ANS (based upon 100% working interest)

NSAI Contingent Resource Estimates - Kodiak Field

Following receipt of NSAI's Independent Expert's Report announced on 9 April 2024, the current best estimate of contingent recoverable marketable liquids stands at 1,207.9 million barrels ("mmbbls") and 5,396.3 billion cubic feet ("bcf") of natural gas for the Kodiak Field. This represents a 25% increase compared to the 2023 assessment prior to the inclusion of the new leases on which Pantheon was the successful bidder in December 2023. The high estimate shows a better than 40% increase on the previous report, reflecting the potential for substantial improvement in reservoir properties at shallower depths in the new leases.

Lee Keeling & Associates ("LKA") Reserves Estimates - Ahpun Field, Alkaid Horizon

LKA has been contracted to provide an updated Independent Expert Report ("IER") on the Alkaid horizon of the Ahpun Field. This work is presently underway and will be released once completed.

Cawley Gillespie & Associates ("CGA") Contingent Resource Estimates - Ahpun Field, Western Topsets

CGA has been contracted to provide an IER on the Western Topsets in the Ahpun Field. This work is presently underway and will be released once completed.

Management Resource estimate - Ahpun Eastern Topsets 

Approximately 23,000 of the c.66,000 acres successfully bid for in December 2023¹ cover the Eastern Topsets of the Ahpun project. Management has completed an internal resource assessment and, in a P50 case, estimates a Prospective Resource (gross) of 609 million barrels of marketable liquids, as summarised in the table below. The Company intends to drill an exploration/appraisal well in the Ahpun Eastern Topset, once funded, to further refine the resource estimate.

1 The Company has paid an initial 20% deposit to the State of Alaska with the remainder payable on official award of the new leases which is anticipated this quarter.

Ahpun Eastern Topsets - Management resource estimate - 100% working Interest¹

I.      Gross resources - prior to deduction of c. [13.5% to 17.7%] royalties.

II.     Pantheon will have 100% working interest in all leases once award complete.

III.    Management resource estimates have been prepared in accordance with definitions and guidelines set forth in the 2018 Petroleum Resource Management System (PRMS) approved by the Society of Petroleum Engineers (SPE).

IV.    Estimated 70% Geological probability of success.

SLB Modelling Update - Ahpun Western Topsets Individual Well Type Curve

SLB has continued its dynamic modelling of Pantheon's reservoirs and provided a single well model based on the rock properties logged and sampled (whole core) at the Pipeline State-1 well location. This results in per well recoveries of 3.7 million barrels of marketable liquids and 8 bcf of natural gas.

Illustrative Economic Modelling - Ahpun Western Topsets Individual Well Company Assessment

SLB's results are consistent with the Company's own modelling, which estimates 3.5 mmbbls and 8 bcf expected recoveries per well, and yields the following economic results (on a pre-Federal Income Tax basis):

Illustrative examples - Per well modelled economics

Principal assumptions and management estimates:

•     ANS prices have been discounted by 10%.

•     Wells modelled at 3.5 million bbl marketable liquids EUR in Ahpun Topsets, 3.65 million bbl in Kodiak at Theta West-1 location and 4.56 million bbl in updip Kodiak locations.

•     Assumed zero revenues for natural gas or helium.

•     Transportation costs - TAPS tariff and shipping to US West Coast estimated at $7.50/bbl.

•     1 injection well modelled for every 3 production wells.

•     Production wells costed at $17 million and injection wells costed at $15 million per well.

•     Well pads and production facilities estimated at $50 million for 20 well pad.

•     State profits tax at 35% after payout (4% minimum tax rate prior to payout). Pre federal taxes.

•     Estimates based upon information available at the date of announcement - actual outcomes may differ.

Further information:

Pantheon Resources plc

Jay Cheatham, CEO

David Hobbs, Executive Chairman                                                                                                                    +44 20 7484 5361

Justin Hondris, Director, Finance and Corporate Development

Canaccord Genuity Limited (Nominated Adviser and broker)

Henry Fitzgerald-O'Connor, Ana Ercegovic                                                                                                     +44 20 7523 8000

BlytheRay

Tim Blythe, Megan Ray, Matthew Bowld                                                                                                          +44 20 7138 3204

In accordance with the AIM Rules - Note for Mining and Oil & Gas Companies - June 2009, the information contained in this announcement has been reviewed and signed off by David Hobbs, a qualified Petroleum Engineer and a member of the Society of Petroleum Engineers, who has nearly 40 years' relevant experience within the sector.

The information contained within this Announcement is deemed by Pantheon Resources PLC to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas company focused on developing the Ahpun and Kodiak fields located on state land on the Alaska North Slope ("ANS"), onshore USA, where it has a 100% working interest in c. 193,000 acres. In December 2023, Pantheon was the successful bidder for an additional 66,240 acres with very significant resource potential, contiguous to the Ahpun and Kodiak projects. Following the issue of the new leases, which are expected to be formally awarded in summer 2024 upon payment of the balance of the application monies, the Company will have a 100% working interest in c. 259,000 acres. Certified contingent resources attributable to these projects are currently around 1.3 billion barrels of marketable liquids, located adjacent to Alaska's Trans Alaska Pipeline System ("TAPS") with additional IERs expected within the next month.

Pantheon's stated objective is to demonstrate sustainable market recognition of a value of $5-$10/bbl of recoverable resources by end 2028. This is based on targeting Final Investment Decision ("FID") on the Ahpun field by the end of 2025, subject to regulatory approvals, building production to at least 20,000 barrels per day of marketable liquids into the TAPS main oil line, and applying the resultant cashflows to support the FID on the Kodiak field by the end of 2028.

A major differentiator to other ANS projects is the close proximity to existing roads and pipelines which offers a significant competitive advantage to Pantheon, allowing for materially lower infrastructure costs and the ability to support the development with a significantly lower pre-cashflow funding requirement than is typical in Alaska.

The Company's project portfolio has been endorsed by world renowned experts. Netherland, Sewell & Associates ("NSAI") estimate a 2C contingent recoverable resource in the Kodiak project that total 1,208 million barrels of marketable liquids and 5,396 billion cubic feet of natural gas. Cawley Gillespie & Associates and Lee Keeling & Associates are working on estimates for the Ahpun Field Topset and Alkaid horizons. 

Glossary

Bbls: barrels

Bcf: Billion cubic feet

Contingent Resource: Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable owing to one or more contingencies.

NGLs: Natural gas liquids (NGL) are components of natural gas that are separated from the gas state in the form of liquids.

Prospective Resources: Those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations.