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Upgraded management resource estimates - Kuparuk
Upgraded management resource estimates - Kuparuk.
About this update from Pantheon Resources Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 8531B\n Pantheon Resources PLC\n 13 October 2020\n \n \n \n \n \n \n \n \n \n \n 13 October, 2020\n \n \n \n \n \n Pantheon Resources plc\n \n \n Upgraded management resource estimates - Kuparuk (Talitha Project)\n \n \n \n \n \n Pantheon Resources plc (\"Pantheon\" or the \"Company\"), the AIM-quoted oil and gas exploration company with working interests of 89.2% - 100% in certain projects advantageously located adjacent to transportation infrastructure on the Alaskan North Slope provides the following update:\n \n \n Resource Upgrade\n \n \n \n Pantheon has completed its resource assessment of the Kuparuk formation at its Talitha project. The Talitha project contains three independent target geological horizons, each with different reservoir trap geometries, qualities and risk profiles. All three of these formations were penetrated by the Pipeline State #1 wellbore on the Company's acreage and all were confirmed as oil bearing. The Company has now completed its analysis of the Kuparuk, the deepest of these three horizons, and estimates this horizon (on a 100% basis) to contain 1.4 billion barrels of oil in place (OIP) and a Prospective Resource (Recoverable) of 341 million barrels of oil (MMBO) as a most likely case.\n \n \n The Company has modelled an illustrative development plan(1) for this zone with 62 producing wells, exploiting 247 MMBO of this resource, and using the WTI current forward price curve, yields a potential NPV10 of over US$1.48 billion, with NPV per barrel of $6.00 and an Internal Rate of Return of 55%.\n \n \n Subject to the completion of a farmout, Pantheon intends to drill a well at Talitha in early 2021, which will test the Kuparuk as well as two other (shallower) target horizons:\n \n \n 1. The shallower 'Shelf Margin Deltaic' (\"SMD\") horizon, over which the Company recently received an Independent Expert Report (\"IER\") certifying a Prospective Resource of 302 MMBO (100% basis). This independent resource estimate covered only the 20,600 acres of the reservoir section which is structurally higher (ie \"updip\") from the oil encountered in the Pipeline State #1 discovery well, and did not cover the total resource across the entire structure or project area. The Production Unit at Talitha covers 44,373 acres. The SMD is the pri...