Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) has recently updated its resource estimate for the Kodiak field located on Alaska’s North Slope, showing a considerable increase.
The revised figures indicate that the field holds 1.2 billion barrels of marketable liquids, a notable 25% jump from prior estimates. Additionally, it’s estimated that there are 5.4 trillion cubic feet of natural gas, underscoring the significant size of this resource and supporting the proposed pipeline project to connect with markets in southcentral Alaska.
This updated estimate reflects both an expansion of the Kodiak project area, now covering 66,000 acres up from 43,000, and a higher expected recovery rate. This is attributed to improved reservoir properties in the shallower parts of the field, newly included in the project’s expanded area.
Netherland Sewell & Associates Inc (NSAI), the consultant responsible for this upgrade, highlights Kodiak’s enormous potential. Their ‘high estimate’ projects up to 2.84 billion barrels of marketable liquids and around 11.75 trillion cubic feet of natural gas.
Bob Rosenthal, Pantheon’s technical director, commented on the significance of the NSAI report, emphasizing the vast potential of the Kodiak Field, especially following the extension of their lease area. He mentioned the company’s aim to align their ‘best case estimate’ closer to NSAI’s ‘high case estimate’ over time through additional drilling and data collection.
Rosenthal also expressed the company’s excitement about the discovery of a billion-barrel oil accumulation, acknowledging the milestone as a validation of Pantheon’s achievements over the past decade. He mentioned the focus now shifting to development and cash flow generation for shareholders, including advancements in their Ahpun resource.
David Hobbs, Pantheon’s chair, highlighted the NSAI validation as a crucial step towards their 2028 goal of realizing values between $5-$10 per barrel of recoverable resource. He also spoke of recent progress in securing funding, particularly by capitalizing on their natural gas resources, which bolsters the company’s confidence in moving forward.
