Pantheon Resources shares jump on updated independent report

9th Apr 2024 12:07

(Sharecast News) - Pantheon Resources shares jumped on Tuesday morning, after it announced the findings of its updated independent expert report (IER).

The AIM-traded firm said the report, conducted by Netherland Sewell & Associates (NSAI), pertained to around 43,000 acres of leases, including those it had secured in December, situated within its 100%-owned Kodiak Field on Alaska's North Slope.

It said NSAI's assessment revealed Kodiak's contingent recoverable resources, comprising marketable liquids - oil, condensate, and natural gas liquids - to amount to 1.2 billion barrels and 5.4 trillion cubic feet of gas, representing NSAI's best estimates.

The updated figures marked a 25% increase from 963 to 1,208 million barrels in recoverable marketable liquids, compared to NSAI's previous 2023 report.

It said the update incorporated around 43,000 acres of expanded acreage, secured through successful lease bids in December.

Moreover, it reflected a higher average recovery rate due to enhanced reservoir properties in the shallower, updip portion of the field obtained through new leases.

Pantheon said Kodiak, characterised as a large basin floor fan accumulation with three well penetrations, had seen recent drilling activities and acreage acquisitions focusing on accessing better reservoir rocks with improved porosity and permeability.

The potential enhancement in reservoir quality within the newly-acquired acreage supported a significant increase of about 40% in the high estimate of recoverable resources to 2,840 million barrels of marketable liquids and 11.75 trillion cubic feet of natural gas.

It said the 5.4 trillion cubic feet of 'best case' recoverable gas served as a crucial factor supporting a proposed agreement with Alaska Gasline Development Corporation (AGDC), aimed at facilitating gas transportation to southcentral Alaska markets.

"The underpinning of our strategy with the validation provided by NSAI is an important step on the path to our 2028 goal of demonstrating values in the range $5 to $10 per barrel of recoverable resource," said executive chairman David Hobbs.

"Recent progress towards securing funding, include leveraging our natural gas resources - potentially turning them from a liability to an asset - allows us to move forward with increased confidence.

"I would like to take the opportunity to congratulate Jay and his team on putting the building blocks in place to deliver our ultimate success."

At 1147 BST, shares in Pantheon Resources were up 22.48% at 41.95p.

Reporting by Josh White for Sharecast.com.