Pantheon Resources Plc · LSE:PANR
Pantheon Resources — Shareholder Meeting (December 2010)
18 slides from Pantheon Resources's shareholder meeting presentation, Dec 10, 2010
Slide 1: AGM Presentation
AGM Presentation 10 December 2010
Slide 2: Disclaimer
Disclaimer These presentation materials are for information purposes only and do not constitute an offer or invitation to subscribe for or purchase any securities, and neither the presentation materials nor anything contained therein nor the fact of their distribution shall form the basis of or be r
Slide 3: Corporate Highlights
Corporate Highlights • Confidence in Tyler County project enhanced. • Second well on Tyler County estimated by operator to spud January 2011. • Geologically improved outlook for Tyler County. • Tyler County project profitable at current low U.S. natural gas prices but high leverage to any increase.
Slide 4: Tyler County Update
Tyler County Update 10 December 2010 4
Slide 5: KF#1H Well Update
KF#1H Well Update • Timing of next well (KF#1H) remains the decision of the operator, Vision Gas Resources LLC (“Vision”). However: Operator intends to spud in January 2011. Despite rig rates remaining high. Location work has commenced. Site access “Right of Way” approval process currently o
Slide 6: KF#1H Well Update
KF#1H Well Update • KF#1H well targeting both: o Austin Chalk – primary objective. o Woodbine – secondary objective. • Offsets Vision’s existing and producing LP#2 well on JV acreage. • Estimated US$1m incremental cost to JV to drill Woodbine in KF#1H. 10 December 2010 6
Slide 7: Substantial Activity in Past Year
Substantial Activity in Past Year • Extensive geological and geophysical work on acreage. • Operator hired additional geoscientist – primary focus on analysis/modelling of Woodbine. • Joint Venture acreage high-graded and increased. • Operator maintains an ongoing leasing programme. • New completion
Slide 8: Regional Context – Proven Hydrocarbon Basin
Regional Context – Proven Hydrocarbon Basin • Brookeland field has produced for over 20 years. • Austin Chalk directly above source rock. Whole area hydrocarbon charged. 10 December 2010 8
Slide 9: JV Acreage Position
JV Acreage Position Vision-No.2 LP Vision-No.1 Ergon-No.1 Ergon-No.1 Well Rice Rice Well Ratcliff Well Double A Wells Field 10 December 2010 9
Slide 10: New Completion Tool
New Completion Tool Custom designed to mitigate rubble problems 10 December 2010 10
Slide 11: Tyler County - Upside Potential
Tyler County - Upside Potential • Average JV reserve estimates of 8 bcfe per well have potential to be exceeded: First well on acreage, VRU#1, exhibited similarities to down-dip Giddings Field (Austin Chalk) wells. Average down-dip Giddings wells >10 bcfe per well. Pantheon’s JV acreage is dow
Slide 12: Woodbine – Additional upside potential
Woodbine – Additional upside potential • Independent and totally separate from Austin Chalk (primary target). • Sits below Austin Chalk. • Geologically complex sandstone, but when present, Woodbine fields are prolific producers. • Woodbine zone known to exist on acreage. Extent unknown. • Vision LP#
Slide 13: Partners in Tyler County JV
Partners in Tyler County JV Company Working Comments Interest Vision Resources LLC (operator) 37.5% Private company. Long term presence in East Texas. Majority owned by George Kaiser. Kaiser Francis Oil Company 25.0% Private company. Owned by George Kaiser. “Amongst world’s biggest private energy pr
Slide 14: Macro Economic Data
Macro Economic Data 10 December 2010 14
Slide 15: Macro Economic Data
Macro Economic Data Upward trend in rig utilisation coincided with downward trend in U.S. natural gas price 10 December 2010 15
Slide 16: Macro Economic Data
Macro Economic Data Utilisation of horizontal gas rigs has doubled in past year 10 December 2010 16
Slide 17: Macro Economic Data
Macro Economic Data Historic oil to U.S. Natural gas price ratio of 10:1 has broken out to >20:1 Appears unsustainable in long term Ratio of Crude Oil to Henry Hub Natural Gas Price 40 35 30 25 20 15 ` 10 5 0 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 May-06 May-07
Slide 18: Illustrative Individual Well NPV ($US) Tyler County
Illustrative Individual Well NPV ($US) (*3) Tyler County Pricing Sensitivities(*1) NPV10 $US Average Average Chalk Well Woodbine Well (8 bcfe) (18 bcfe) Today’s Pricing(*2) - US$4.60/mcf natural gas & US$90/bbl oil $4.2m $11.4m Higher Gas Price - US$6.00/mcf natural gas & US$90/bbl oil $5.7m $13.9m
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