Pantheon Resources plc, the AIM-quoted oil and gas exploration company with working interests in several conventional project areas in Tyler and Polk Counties, onshore East Texas, as well as onshore North Slope of Alaska, announces its interim results for the six months ended 31 December 2018.
HIGHLIGHTS
Acquisition and post year end operational
Completed the acquisition of Great Bear Petroleum Ventures I LLC and Great Bear Petroleum Ventures II LLC (together, “Great Bear”) in January 2019. The transaction added over 250,000 leased acres onshore North Slope of Alaska, covered by +1000 square miles of 3D seismic, which had a pre-drill estimated P50 Technically Recoverable Resource (Gross) of over 2 billion barrels oil.
Acquired a controlling 66.6% ownership of Vision Gas Limited and Vision Resources LLC (together, “Vision”) including its working interest in the VOS#1 well and associated Tyler County acreage. This transaction has allowed Pantheon to assume management control of the Vision entities.
In January 2019 completed an equity fundraising raising US$20.9m before expenses, issuing 108,335,266 shares at an issue price of £0.1525.
Strengthened the existing Pantheon management team and Board. Appointment of Bob Rosenthal as Technical Director and plans to appoint Jeremy Brest and Carl Williams as Non Executive Directors. Other additions includeMichael Duncan, VP Operations, Pat Galvin, Chief Commercial Officer Alaska, Josh McIntyre, CFO Alaska, and Dr. Ed Duncan, a founder and previous CEO of Great Bear, as Consulting Geologist.
Alkaid Well (Alaska): The primary target of the well, the Brookian ZOI, confirmed as an oil discovery following a successful flow test where results exceeded expectations. A 6 foot interval (from a c.240 foot interval of net pay) was perforated and flow tested at 80- 100 BOPD light oil (40 degree API). Such flow rates are considered to be an excellent result and indicate the potential for materially higher flow rates when wells are drilled in the typical manner for Brookian wells in Alaska – horizontally, fracture stimulated, and with larger intervals perforated. Preparations to test the two secondary targets, the West Sak and Ugnu have already commenced.
East Texas: Commenced a comprehensive technical review of East Texas assets. This has included a re-engagement with the Bureau of Economic Geology at the University of Texas at Austin. The Great Bear team will also undertake a comprehensive review of the drilling and completion history of our Polk and Tyler County wells and will apply high tech geophysics to our East Texas portfolio, a technique used to great success in Alaska.
Operational
Completed the gas pipeline from the VOS#1 well to the Enterprise Gas Pipeline system in Tyler County.
Installed compression at the inlet to the Kinder Morgan Gas Processing Facility in Polk County.
Combined production for Polk & Tyler Counties c.325 boepd.
Financial & Corporate
Revenues for the six months ended 31 December 2018 of $356,598 (2017: $514,303).
Loss for the period of $1.27m (2017: $2.57m).
Cash and Cash equivalents at year end $4.0m (2017: $7.6m).
Outlook
In Alaska, Pantheon has between 75% and 90% working interest positions in the Great Bear prospects (except Winx at 10%). Such dominant working interest positions provide the Group greater freedom in farm-out or other partnering opportunities to subsidize or fund future drilling. Together with Great Bear personnel, Pantheon has a comprehensive network of oil and gas contacts which will be accessed where relevant for farm out or other opportunities in both Texas and Alaska.
Alkaid Well – Following the successful flow test in the primary target, the Brookian ZOI, the next step is to flow test the secondary targets, the West Sak and Ugnu prior to shutting down operations later in April 2019.
Pantheon’s strategy to delineate the perspectivity across its enlarged acreage position and seek a full value exit for shareholders remains unchanged.
Jay Cheatham, CEO, said: “It’s been an incredible period for Pantheon. The Great Bear merger, although complex, has been a huge success. The additions to our Board and Management team is showing results in both Alaska and East Texas. The success at Alkaid in the Brookian ZOI illustrates the quality of the technical work and of the Alaskan assets. Alkaid is already a huge success. The Brookian was the original target. The West Sak and Ugnu are bonus zones.”
“I’m pleased with the work already underway in East Texas. Both from an operational and geologic/geophysical perspective, advances are evident.”
“Finally I must add that the passing of our former Chairman , John Walmsley was a sad moment for me and for everyone who knew him. The consummate gentleman, I’ll miss him.”
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