LONDON (ShareCast) - (Sharecast News) - Pantheon Resources announced the results of an independent expert report (IER) by Cawley Gillespie & Associates (CGA) for the Ahpun field on Tuesday, estimating 280 million barrels of recoverable ANS crude oil.
The AIM-traded firm said the report, which assessed the western topset horizons of the Ahpun field on the North Slope of Alaska, contributed to its aggregate resources, now exceeding 1.5 billion barrels of ANS crude and 6.5 trillion cubic feet of associated gas across its Kodiak and Ahpun oil fields.

It said the gross quantities of oil were 152.48 million barrels, with net quantities at 128.47 million barrels.

For natural gas liquids (NGL), the gross quantities were 129.58 million barrels, and net quantities were 109.25 million barrels.

The total of oil and NGL amounted to gross quantities of 282.06 million barrels and net quantities of 227.72 million barrels.

Additionally, the report identifies gross quantities of 803.85 million barrels of gas, with net quantities at zero million barrels.

CGA evaluated the economic viability of the best estimate (2C case) for the Ahpun field.

With an ANS crude price of $80 per barrel delivered to the US West Coast, the net present value (NPV) of the total contingent resources in the western topsets was estimated at $1.74bn, using a real discount rate of 10%.

Pantheon said it was targeting a final investment decision (FID) as soon as possible, subject to regulatory consents, with the goal of commencing production no later than 2028.

It said the IER incorporated data from the successful completion and testing of the Alkaid-2 well's shallower topset horizon in the fourth quarter of 2023.

Improved frac design, including finer mesh sand and lower concentration in slick water stimulation, resulted in better frac efficiency.

That, along with downhole pressure data and fluid samples, provided enhanced understanding of reservoir parameters and potential development economics.

Pantheon said it was also considering infill drilling, or 'wine-racking', in the southern topsets, potentially adding approximately 80 million barrels of high-value recoverable resources.

Combined with CGA's estimates, that could bring the total expected ultimate recovery from the Ahpun western topsets to around 360 million barrels, compared to previous management estimates of 404 million barrels.

"Cawley Gillespie & Associates have validated Pantheon's assessment that the Ahpun topsets on the west side of the Dalton Highway can be economically developed, even after excluding the potential market offtake for natural gas," said chief executive officer Jay Cheatham.

"The best estimate of 282 million barrels of contingent recoverable resources of ANS crude and 803 billion cubic feet of natural gas underscore our ability to support the in-state phase of the Alaska LNG project, initially with Ahpun volumes and, in due course, Kodiak field resources."

At the close on Tuesday, shares in Pantheon Resources were down 1.7% at 31.75p.

Reporting by Josh White for Sharecast.com.

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