Pantheon Resources PLC (AIM: PANR, OTCQX: PTHRF) recently announced a substantial update on its resource estimates in Alaska, following a report from independent consultant Lee Keeling & Associates (LKA). The report focuses specifically on the Ahpun field’s Alkaid horizon, which boasts 5 million barrels of oil and 27 billion cubic feet of natural gas.
These reserves are located around the area of Pantheon’s Alkaid-2 well, drilled in 2022. Additionally, LKA has identified contingent resources including 74 million barrels of marketable liquids and 396 billion cubic feet of natural gas, with a high-case scenario projecting up to 123 million barrels and 634 billion cubic feet.
Despite being described as the smallest and least favourable in terms of reservoir quality within Pantheon’s portfolio, the Alkaid horizon is strategically situated near pipeline and road infrastructure, enhancing its potential for early economic development.
David Hobbs, the executive chair of Pantheon, emphasized the significance of these findings for the company’s strategy to advance the development of the Ahpun and Kodiak Fields into production over the next few years. He highlighted the robust potential returns exceeding 20% from the Alkaid horizon, considered the most marginal of their appraised resources on the Alaska North Slope.
Furthermore, Hobbs pointed out the superior reservoir properties of both the Ahpun topsets and the newly awarded Ahpun Eastern Extension, which also benefit from proximity to essential infrastructure. This proximity could lead to substantial development synergies, potentially boosting expected returns.
Pantheon is working toward a final investment decision for the Ahpun field by the end of 2025 and is preparing for a separate assessment of another reservoir zone, the ‘Ahpun Topsets,’ expected in the upcoming weeks. Hobbs expressed confidence in the team’s efforts to align the necessary elements to meet their strategic objective of achieving market recognition of $5-$10 per recoverable barrel by 2028.
