Pantheon Resources (LSE:PANR) — Operational and Funding Strategy Update

0:01 Good afternoon, ladies and gentlemen. Welcome to the PANTHEON RESOURCES PLC Operational and Funding Strategy Update. Throughout today's meeting, investors will be in listen only mode. Questions are encouraged, could be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Simply type in your question at any time and press send. Given the significant attendance on today's call, the company will not be able to answer every question received during the meeting itself. However, the company can review all questions submitted today, we'll publish those responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll. If you give that your kind attention, I'm sure the company would be

0:32 most grateful. I'd now like to hand over to executive tech chairman, David Hobbs. Good afternoon. Thanks very much indeed, Mark, and thank you everyone for joining us today. We're we're gonna be going through three things. We're gonna be talking about the pathway to $5 barrel value recognition. We're gonna be talking about the reduction in the prospective funding gap to get to financial self sufficiency, and we're going to be talking about near term value catalysts. So with that, the the slides are being posted to our website, so you'll have an opportunity to review the disclaimer at your pleasure. Let's move to what has become a traditional first slide in most of our presentations. And if you're new to PANTHEON, this map is a simple overview of what we do and where we do it.

1:24 It shows two world scale fields. The first, Hapun, discovered in 2015, but tested in 2019. That was the alkade horizon, which turned out to be the smallest part of the field, around five percent. The majority was discovered in 2020 with flow tests in 2021, and it's expected on stream in 2028, which is lightning speed for a new field development in Alaska rather than as a just a satellite to an existing field. The second giant field, Kodiak, was discovered in 2020, but only properly encountered in the twenty twenty one feet at West Well. That field is expected on stream by the end of the decade. And, again, lightning fast for a field independently assessed at 1,200,000,000 barrels with significant growth potential when compared to other North Slope fields in terms of time tail such as Willow And Pikka Horseshoe.

2:20 But many of you already know the company, and you'll know that over the years, we've tended to skip through this map, succumb to the temptation because it's telling us something that we already know. But if we compare what it looks like this year to what it looked like last year, there are some really important differences. We've added substantial additional acreage. We've had independent validation of both the volumes and the values of the oil. We've recognized gas resources for the first time, and those gas resources are a path to funding the oil development, which is where the real value lies in the longer term. And so today, we're gonna take you through the progress of the last twelve months, explain how that fits into the strategy we outlined a year ago for achieving our goal of value recognition in the 5 to $10 per barrel of ANS crude in that range based on the reserves that we expect to be able to book by the end of twenty twenty eight.

3:17 We'll be achieving this, trashy, by securing FID on APOON and then on Kodiak with APOON to be generating positive net cash flows so that we can become financially self sufficient. Nothing that we haven't haven't told you before in that regard.

3:40 But let's look at the the scorecard for the last twelve months and see how we've done executing the strategy we laid out. In the past twelve months, we've secured resource validation through independent expert reports on all the resources being brought forward for development. The contingent resources, the sum of Netherlands, and Lee Keeling Associates is just shy of 1,600,000,000 barrels in the best case and just over 6,000,000,000,000 cubic feet of natural gas. The prospective resources added through the 2023 lease sale are more than 600,000,000 barrels in the in the eastern portion of the Uphoon Field, which we expect to be able to drill and prove during the course of the coming year.

4:36 And, of course, in that same lease sale, we secured what has added around 250,000,000 barrels to Kodiak, taking us up to the 1,200,000,000 barrels there. That lease sale increased our total estate by nearly some 65,000 acres, so bringing us to nearly 260,000 acres. And that now covers everything we consider to be prospective in the Apun and Kodiak fields and economically accessible. We've added gas resources to the map because we've secured the start of a long term relationship with the state of Alaska through AGDC to provide in state gas for the next twenty to forty years. And that gas transaction has helped us reduce the prospective funding requirement from what was expected to be up to $350,000,000 a year ago to potentially as little as $60,000,000 to get to FID on Apun, and 85,000,000 if we end up having to drill an additional Apun appraisal well along the way.

5:44 The company's understanding of the assets has moved forward significantly as we've optimized the development working with SLB, formerly Slumberger, on the detailed modeling. And we've engaged with the Department of Natural Resources in Alaska and the Alaska Oil and Gas Conservation Commission as well. And one thing that's clear and and for the benefit of the long term relationship, we're not gonna be sandbagging the state Of Alaska to try and get approval for anything other than the resources that we have. There would be a risk to the long term ability to expand if we tried to pretend it was a small field and and then revealed from behind the curtain the much larger field. So we will be finishing the appraisal of the Apun field to submit the full field development plan, whether it's for 400,000,000 barrels or 1,000,000,000 barrels if if the eastern top sets are oil bearing as we expect based on seismic analysis.

6:43 And the scale of that leads us to a path for leads us to a path for for environmental and regulatory approvals by 2027. We talked in back in June back in that June press release on the on the gas deal, we talked about two to three years for an environmental impacts statement. And so we're talking about production in 2028. So yeah. Sorry. FID '27 production '28. In terms of sort of some of the less exciting things, but but nonetheless very important, professionalization of the company. So we've upgraded the governance shortly reaching a point where a majority of the in of the board will be independent directors.

7:37 We've got committee chairs with the requisite skills and experience. As we move to a US listing, the conventional composition of a board means that it you'd only have from the executive, you'd only have the CEO and and potentially the executive chairman if if that was a separate role. That will cement the majority independent directors on the board. We are strengthening the management, technical management, particularly. Tony Baumann coming on board. We've seen the benefit of that in the trouble free recompletion of the ALKARE two well to demonstrate the new frac design, which the success of that has underpinned most of the work done by SLB and internally on expected well performance in the upper end top sets. But we've also strengthened legal and financial oversight in appointing Pat Galvin now as general counsel for the group, Josh McIntyre as group financial controller. We brought Phil Patman on board who's driven the IPO process forward significantly in including working with Josh and and Justin on the restatement of accounts, The US GAAP, on the controls and documentation of processes to to become Sarbanes Oxley compliant.

9:03 And, generally, strengthening the organization organization's infrastructure so that it is able to match the task of developing a multibillion barrel development rather than just time to time exploration activities. We've validated the resources. We had the initial Kodiak report in August last year, but now the updated report to incorporate the new acreage. We've had colleagues and associates who do, amongst others, Hill Corp's work in Alaska. And Lee Keeling had obviously previously looked at the alkade zone, not only creating volumetric estimates of contingent resources, but also an economic evaluation because that's a key step in the development planning process.

10:00 Once we have a

10:08 once we have a fully fully appraised Internet something's gone wrong with the Internet connection, is it? Are we are we back? We can still hear you, David. Okay. Sorry. The there was flashing across my screen that that it was paused. The yeah. So so, yeah, we we will have a development plan for Kodiak once we've completed the appraisal of that, and we'll be able to assess the economics at at that time. But if we if we think about one of the consequences of of trying to run the independent expert reports in parallel in order to shorten the time frame was that we've now had three different independent firms reviewing the geotechnical story, which is certainly has helped increase our confidence that it's been thoroughly peer reviewed.

11:04 The our own internal estimates for the development economics show that they're strongly economic projects, and the individual work well economics that we've published before based on type curves for each area of the field provide better than 100% rates of return. And importantly, profit to investment ratio is above two, and and that's a threshold for the point at which drilling new development wells becomes liquidity enhancing because each new well supports a debt capacity at least as large as the cost of drilling it. Now the the key importance of those independent expert reports and and part of the reason for wanting to accelerate them was that we needed to demonstrate that it wasn't just us saying that we had economically viable oil resources with associated gas resources, but that that we needed to demonstrate that to move those discussions forward. And so those have provided a critical underpinning, both in terms of, if you remember, one of the contingencies around moving from or one one of the contingencies that you need to satisfy to move from contingent resources to reserves is an assessment of of economic viability as well as export routes as well as markets for products, and and finally then FID and development consent.

12:29 And we have that's that's the reason that we've started off down this route and and getting them complete has allowed a number of other things that are ongoing to to be done. If we if we look at the gas, the gas is is a path to to funding the oil. It's a pretty important part of the puzzle. And what I think is is not immediately recognized to people who've become jaded by the years or even decades of history of there being a gas project being talked about, you know, our low cost supply, effectively zero marginal cost of supply gas with a short lead time because it doesn't require significant capital equipment to be built, changes the game for the Alaska gas project.

13:15 It allows a phase one independent of whether there is a subsequent LNG development, independent of whether there's a CCS plant up in Deadhorse, it allows the development to go forward and meet the growing demand for natural gas as the cook inlet output begins to decline. And at a materially lower cost than the alternative of importing LNG or paying for substantially larger a substantially larger project, including gas treatment. So it's really transformed the economics of that project. We're now fully aligned with the state in terms of being determined to move it forward.

14:01 And as that moves forward, and we we turn the gas sales precedent agreement into the fully termed gas sales agreement, carrying over the terms that have been agreed in principle that you can see in this slide, we estimate that on normal commercial lending terms, it'll support a debt of at least $250,000,000. And as we mentioned in the original release, we have a number of options working with the state where if the state can reduce the cost of accessing that level of funding, then we will reduce the cost of the gas. I I can't breach confidentiality to tell you the detailed specifics of that, but there are a number of different discussions going on with the state about how we access the most secure lowest cost funding at the same time as delivering the lowest cost gas to the state of Alaska.

14:58 There is some potential for CapEx saving from from not having to dispose to drill as as many disposal wells, but that's a relatively minor impact on the overall NPV simply because we will still be injecting gas. At full production, we'll be producing more than a billion cubic feet of gas a day. That will still require gas reinjection. And, of course, if the pipeline is shut down for any reason by operational interruption, we need to be able to reinject the gas because we certainly don't wanna be shutting down the oil because of a of a downtime on the pipeline. But nonetheless, it it it's definitely a positive in the right direction. We said that we would provide an update.

15:45 You know, we we we gave you two dates that we we talked about. We said we would provide an interim update at the end of the first quarter, and we did when we talked about the the general picture and that we were earning earning towards the off taker financing rather than vendor financing because we were, you know, on the cusp of agreeing the the deal with the state of Alaska through through AGDC. The we said we'd outline the full funding strategy and tell you what the picture looked like at the end of of the second quarter, and that's what we're doing now. I I don't think we've ever said that we would sign definitive agreements with money in the bank today, and we've taken steps to ensure we've got the runway financially to avoid counterparties being able to leverage any weakness as we bring the initiatives that are currently underway and that that we'll describe to to a close.

16:43 Bluntly, we'll do the right things in the right order and only worry about the short term daily fluctuations of the stock price to the extent it influences long term choices the company has to make. Our goal is to make sure we've always got multiple choices so that we don't rely upon the stock price or any individual counterparty being able to leverage us. So the steps we've taken so far, as I say, we've we've brought that prospective requirement for $350,000,000 down to no more than 60 to $85,000,000. And we have done a lot of preparation for a US listing to to be completed in the middle of of around the middle of next year. We're currently juggling a number of different discussions, whether it's structure structured instruments, industry type transactions, whether it's a farm out swap or whatever it may be, and then looking at debt based and equity alternatives.

17:42 Obviously, we've got The US listing I mentioned. But the strategy is always to make sure we've got plan b, c, and d so that we're never forced to take a bad option, that we're always able to take the best possible option. And I'd illustrate, you know, how how has that shown itself in the past. We used to had established, if you like, a tradition of making the amortization payments on the convertible bond in stock that had led to predictability that had had allowed the stock price to drift as we moved into the the the quarterly amortization period. By placing the stock into tight hands so that it wasn't guaranteed to be available and therefore to be sold into, we created a situation where, in fact, we've made the last two payments in in equity, but the price didn't drift into the bank. So the the price at which the equivalent price at which we've issued that that equity has been higher than otherwise it might have been, and it's been higher than it was a year earlier.

18:53 We've avoided substantial element of dilution from reducing the number of shares having to be issued. And and we will continue to do whatever it takes to avoid any greater dilution than is necessary. You know, I'm speaking as a shareholder, Justin and Jay, as substantial shareholders. We have an interest in avoiding dilution, and and it's what we live and breathe every day. The other thing that, again, looking forward, illustrative of what we have done in the past. A year ago, or just over a year ago, the general market narrative was, there's too much gas. It's a liability, and it's potentially going to weigh this down and and reduce the the viability. We managed to turn that into an asset and to support a reduction in in dilution by by so doing.

19:46 Similarly with the helium, it's not something that ever appeared before because until we had a valid path to market for it, it was a valueless resource. But today, and helium is a much more strategic product, you know, the the discussions we had about vendor versus offtaker financing offtaker financing in the long run will almost certainly also include oil offtaker VPPs or the equivalent. But but the time frames for VPP funding are typically when production is imminent or already underway. With gas, there's the infrastructure to be built, so people are much more comfortable about structuring contracts that allow prefunding two, three years ahead of of actual gas deliveries. And similarly, you know, with with helium, it's a strategic resource where the ability to access what could be a substantial helium resource, the we've shown you in the past, the numbers were between a half percent and one and a half percent of the gas in Kodiak.

20:51 As Nolan Saul has shown, we've got associated gas of about 5,400,000,000,000 cubic feet, which implies somewhere, you know, in a mid case range around 50,000,000,000 cubic feet of helium. That is no small quantity and therefore potentially an asset that we can leverage in in a transaction to bring forward financing that reduces the equity requirement. So as I said, playing playing the options to bring to conclusion, but filling a 60 to $8,085,000,000 dollar residual funding requirement in the way that relies on equity leased preserves the value for our existing shareholders to the greatest extent possible.

21:39 If I move on to, you know, what what do we think the path is going forward in in the short and medium term? Today, the company's valued at around $300,000,000. That's 20¢ a barrel in in round numbers. Taking the independent assessments of APUON by colleague Gillespie and Lee Keeling has shows $2,000,000,000 or about $5 per barrel on on the the just shy of $4,400,000,000 barrels there. That's equivalent today to $2 per share. So you can see the potential as we begin to derisk or as we continue to derisk because I think we've done a lot of derisking over the last twelve months.

22:27 The company is definitively in a better position with a better understanding of the resource, more engaged in the individual steps along the way. And our priority is, obviously, the short term, executing the funding strategy. That is what will allow us to get to the point where we've we can access post FID funding. The we've got clear visibility on the development plan and the steps necessary to be taken. We're seeking to raise the necessary funds to reach FID, which will include covering a a well on on the eastern top sets Meggres, and that will establish whether the top sets there are oil productive as we expect.

23:18 Not forgetting there is always a geological risk, but but we've been 1100% successful where we've drilled on the basis of the the analysis of our three d proprietary seismic working with Ecise. We'll be completing the appraisal process for Apun, which may involve as part of the closing on the Alaskalai pipeline and and on the pipeline, a Teletha b well, which would be to confirm gas deliverability. And AGDC will be undertaking their feed along with their pipeline partner, Enbridge.

24:05 In the meantime, we'll be working on The US listing. And if we execute our strategy of always having additional options at hand to create competitive tension, we'll have funded ourselves ahead of the IPO such that anything we do in the IPO is a matter of company choice rather than financial necessity. So those steps will take us through to FID on on Apun. As I say, it's a two to three year period. So in the in the best case, sometime in 2026, and in the worst case, sometime in 2027. And through into production, which is a matter of months, but certainly within a year of that that FID. And somewhere along the time somewhere along the that, you know, moving up that that value staircase, a lot of the value is the derisking to a point where the success of the development program becomes inevitable in the eyes of the market. And once it becomes inevitable, we think that we'll be sitting nearer the $5 a barrel than the 20¢ per barrel.

25:08 I can't imagine that we won't crystallize that value if we continue to deliver in the way we have in the last twelve months. And that's the reason why we are confident in the ability to deliver the overall strategy that we set out a year ago of targeting sustainable market recognition of $5 to $10 per barrel. With that, Mark, I'll turn it over to you for further Q and A. That's great, David. Thank you very much indeed. Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the right hand corner of your screen, but just while David and the team to view your questions submitted already. I just like to remind you that recording of this presentation along with a copy of slides and the published q and a can be accessed via your investor meet company dashboard. David, as you know, you received a significant number of questions ahead of today's presentation.

25:57 You've also received a number throughout. So if I may just hand back to you to read out those questions where it's appropriate to do so, and I'll pick up from you at the end. Yeah. Well, absolutely. Thanks, Mark. And we'll we'll run through those. The the first one was about our goal was stated in in terms of one c, one p numbers. Jay, do you want to just talk about what what the numbers we've had are and and provide some context there? Yes. Cauley Gillespie and Lee Keeling did not provide 1C and 3C numbers. Netherlands and Sewell actually did provide us with the range. And The Netherlands and Sewell April report, included the additional acreage and the 250,000,000 barrels that that, David alluded to, has, about 375,000,000 barrels of ANS crude one c, and 2.2 TCF of gas.

27:02 Now I would also like to point out that the three c numbers are 2,840,000,000 barrels and 11.75 TCF of gas. So Kodiak is a huge field. Gonna get better and better. Yeah. And and and just to be clear, that's the reason that there's more work to do on the appraisal of of Kodiak to narrow that range, which which we would expect would be as likely to increase the bottom end as as to.

27:39 David David or Jay, perhaps somebody could explain the difference between one c, two c, and three c just for those that don't understand. Yeah. It's it's the 50%, and 90% probability numbers. Yeah. Yeah. It's it's and and the c is the contingent resource. Once you've removed the contingencies, which which will include FID, then you'll you'll you'll be looking at p numbers rather than c numbers. So proved proof proof plus probable. So two c is is a a mid case conventional a contingent resource. A two p number is a proof plus probable reserve. With regards to a US listing, non US resident or non U citizens are exposed to a 40% estate estate tax.

28:33 Just just to put people's minds at rest, we've always said, and I know Justin has answered a number of individual shareholders who've the question, we intend to maintain a UK listing for as long as it makes sense for the company. And one of the things that wouldn't make sense for the company is to suddenly create a a barrier to investors from anywhere to be holding the shares. UK shareholders have a particular set of tax circumstances. Singaporean shareholders have another different set of tax circumstances. American shareholders have them. We are we're aiming and then have taken tax advice to to try and make sure that we don't unnecessarily dis disadvantage anyone. Next question was, is there well, it presumes there's a flexibility to proceed with a smaller scale project prior to the natural gas pipeline.

29:25 There is an opportunity to to proceed with an oil project that doesn't require the gas pipeline. In fact, that's our base case. All of our planning is done on the basis that won't be a gas pipeline. But the total resource base, we have to consider because there are two elements I mean, at least two, but two major elements to regulatory approval. One is the footprint, you know, the surface footprint and the local air quality footprint, that sort of thing. And then there is the second part is an assessment of the downstream emissions impact. And as soon as you get to a resource that is larger than a threshold level, you're into an EIS, which which is that longer term process.

30:12 The just just to be clear, and I know it's gonna come up as another question somewhere else, the the there is a jeopardy if you try and squeeze a large development in under an environmental assessment. You don't get to credit that time against the process. You go back to the start of the process. And so the the risk of trying to go down an environmental assessment until you'd only do it if you were a 100% confident that you were going to be able to live within that. And that's the the current state of of work is is to determine definitively whether we do or don't require an environmental impact statement. And if if we don't, then, of course, we'll go with the the short process. If we do, then we'll go with the the the EIS process, which in the best case is two years, in the worst case is three years from now.

31:01 But just to be clear, it would be unprecedented not to be granted the approval. The the only instances where sensible proposals haven't been granted has been where they're in sensitive areas, particularly the MPRA and where where they interfere with with settlements and and where they interfere with with endangered species. And we're too far south for polar bears. Certainly no orcas coming up the up the rivers. They're too shallow. So we are taking the path that that guarantees the lowest risk, most secure path to development. Has the company been approached about selling an oil royalty on either or both fields or a natural gas royalty?

31:48 It's the same answer to any questions on specifics. We're not gonna comment on specific transactions or provide a running commentary on it. But the the as I mentioned, there are a number of different transactions that that we're in the process. We've got got options to choose from, and we will make sure that we we work with you know, we end up with the one that's best for for the company and for investors. Could the state of Alaska act as a guarantor and thus reduce the project's cost of financing? I I think I've already sort of effectively dealt with that, that the state can play a role in relation to the development, and and we've built into the the GSPA opportunities for the state to reduce the cost of accessing financing in return for a reduction in the gas price.

32:44 And that that includes a variety of different levers that they're in a position to pull. Next question was, I understand we need an EIS to develop. Could this instead be done under the existing EA while the EIS is in process? Well, firstly, there's no EA in in in existence. But but even if we could go down an EA route, we would run the risk because of the scale of the development in total. Either either we could risk not being able to expand beyond the the permission granted by the EA, or we could end up having to go back to the the start of the process. So we're we're going to manage that risk to the best interest of the company.

33:35 We now see the significance of AGDC for post FID financing. What's the plan for MEGROs and other expenses up until FID? Well, that's we've we've basically covered that. We're we're we've we've got a clear scope and a strategy with that that we're now executing. And and when we have specific transactions to announce, then then we will. It's not that there's gonna be one sweeping answer to the whole question. It's going to be a a variety of pieces that, in sum, allow us to to make sure that we're capitalized appropriately for the job at hand. Jay, will there be any sustained crude sales or compressed natural gas to to help provide funding for development?

34:25 Well well, in the near term, there'll there will not be any significant. However, when we do drill, Meggres or follow-up well at Talitha B, we will be producing some level of crude, and we will sell those. But it will not provide any significant funding. If we breakeven on those given the rent that we have to pay to get into the Trans Alaska pipeline, I'll be very pleased. Yeah. Thanks. The I I'm not even gonna pose the question. I'm just gonna say that that I hope you won't hate me for saying whoever asked me, I was never a real doubled almond ale drinker to start with, and so not being able to import it into The US has not changed my life dramatically.

35:16 Jay, do you still think that PANTHEON's discoveries will be the largest on US soil in in the last few decades? I I still do believe that. And if you think about I know those of you who who have watched our webinars know I would usually open by saying, you know, I I joined Arco in '69 because of Prudhoe Bay and De Gaulleer McNaughton originally said there's 10,000,000,000 barrels of oil in place and the recovery is going to be 3,000,000,000. And now the recovery is going to be bigger than the original oil in place. Yeah. Kodiak, Netherlands Sewell has given us 1,200,000,000 barrels. Yeah. SLB said there was one seven. We believe that there was over two. How big is it gonna be with the addition of the of the yet to be drilled updip portion of that?

36:08 Then we go over to the east and the eastern top sets. This is gonna be a huge oilfield. It is going to be a huge, huge well, they're two giant oilfields. But together, I clearly believe that it'll be easily largest depending on how you how you define West Texas. But it's it's it's significant. And West Texas a hundred years ago, so I think I'm safe. Yeah. No. Exactly. And I define West Texas as the Western portion of Texas, so that's that's easy. Why is the share price seeming to perform so poorly with lots of good news coming out? Suggestions on the back of a of a postcard, please, to us if you know.

36:55 Our job is really just to focus on doing the right things in the right order at an industrial level. And in due course, the share price will reflect the success or otherwise of those activities. When will we list on a major US market platform? The answer already we've given target is focused on the middle of next year. Is there a likelihood of a joint venture with eighty eight Energy? There are no plans for that. Does Great Bear Petroleum have an independent expert report for their oil shale or shale oil potential? I'm not aware of anything that's current that may have been I'm sure at some point, Great Bear did some work on that, but it's not there's nothing that that we're particularly focused on, and and I'm not aware of any specific report.

37:51 Are there any hydrocarbon accumulations within PANTHEON's acreage not being reported or included in the IERs that could become commercially viable if the gas line's built. Jay, do you wanna just Well, yeah, regardless of whether the gas line is built, we have the the Kapark and the slope fan. The slope fan, we tested light oil in it. The Kapark, we had some some oil shows, but that was a failed test. We we were trying to do open hole. But those are two, could be potentially very, very significant additions to our portfolio. And and they'll be, you know, appraised whether they want to be by the development. So Justin, can you talk a little bit about process and time frame of activity towards a US listing?

38:41 We've we've mentioned some of it, but but do you wanna just provide a little extra color? Yeah. Look. I mean, briefly, there's there's a it's a lot more complex than doing a listing here in London, particularly with all the requirements. And this is the long list of procedures we've got to go through. Everything from top to bottom of the organization, we need to restate our financials into gap. We need to get this year and previous year's financial statements audited under under The US standards. We need to implement a whole bunch of protocols from top to bottom within the organization. We've got advisers. There's a bunch of legal restructuring and tax restructuring to do. So we're working through that process. We'll we'll make our submissions early next year, hopefully, and aim for the middle of next year for listings. So it's just a just a long list of of of procedural steps we've gotta work through. Yeah. But but we're we're well underway with that. We are indeed. Yeah.

39:34 Question says the FID for UPON was moved to 2028. Why did it move, and where will the funding come prior to FID? So firstly, it hasn't been moved to 2028. Production is 2028. We were talking originally about production in in '26. The an FID, as as I say, is typically a two to three year process. And and if we think about, you know, how how complex is is our development compared to some others? Well, it starts out by you know, we've we've been gathering air quality data for for more than a year now. We've got a small footprint when compared to the two major developments that have recently been permitted. Not least, you know, we've had the good luck that instead of having to build an airport and and and logistics lay down and all that sort of thing as they have, someone built dead horse and an airport and a road already that runs to our assets. So so we're piggybacking off of an enormous legacy of existing infrastructure.

40:38 The in terms of the air quality component, you know, we we're anticipating going to a zero emissions development around 2030. Again, as we've we've said consistently throughout. And in terms of the downstream emissions profile, it's ANS crude. So we already know what the footprint of that is in terms of what it displaces within The US refining slate, particularly West Coast refining. So the the problem within the regulatory process is it's not about knowing the answer in advance. It's about actually going through the process and and doing it in a rigorous way. And that's what we've got the right engineering and environmental consultants on working with Pat to to deliver that. And and we we're anticipating no no process hiccups on that.

41:30 What is the process, and how soon can PANTHEON access state of Alaska funding? Well, look. The I think there are a lot of people who'd like to see the state of Alaska as a direct stakeholder in the project. The permanent fund, obviously, is not investing significantly or particularly not in oil projects, but not particularly investing in in Alaska risk projects. AIDA, the state entity, I think, does provide industrial support. But we've contracted through the GSPA with AGDC. We anticipate that with the state fully engaged with us through that state corporation that we will be we'll have a shared interest in moving forward to secure the lowest cost, most secure financing for for the development.

42:23 And the first step of that is is, you know, when we when we conclude, you know, subject to all the risks associated with it, but when we conclude a take or pay agreement on the gas, that will allow us access to substantial funding. Do we have any evidence to support our confidence that AGDC will get its funding and move forward? Yes, there's a lot of stuff that gives us confidence, and some of it AGDC has released, which has been in its testimony to the legislature. They've had independent experts assessing their project and its commerciality. Got Goldman Sachs are working on the funding of it. And on the basis of what we've seen, the you know, there's there's progress towards securing the backstop for the initial $50,000,000 that Enbridge will be spending on the FEED confirmation.

43:20 But then in terms of the actual pipeline, you've got the 65% federal loan guarantees under the IRA. You've got then the central pay contracts of the shippers in the pipeline that will support a mezzanine layer and and ultimately an equity proportion. And and this will be an attractive infrastructure development. And and almost ironically, breaking the pipeline out of the overall larger development makes it much easier to envisage the larger development because you're not trying to get $45,000,000,000 from multiple stakeholders all to the start line at the same time. You're simply trying to get a much more constrained set of stakeholders, most of whom are within the state of Alaska's control to or in their orbit to to come together.

44:08 So we we are confident, but we also expect, as we showed in the value staircase, getting the FEED funded will reduce perceived risk amongst our shareholders. Similarly, getting the FID on the Phase one project will substantially reduce the risk in the eyes of our shelves, and we see those as being as much a catalyst for improved value recognition as as any of the things that we're doing. Can we comment on the scope, location, likelihood of a farm in deal for the next drill? As I said earlier, we're not gonna provide a a running commentary on on every conversation we have. We will announce when we have a deal. We will announce when something that we thought was gonna happen doesn't happen. We've we've told you a year ago that we would share good news and bad news as soon as we had it and treat them both the same, and and we'll continue to live like like that.

45:05 How many wells will PANTHEON require to fulfill the AGDC contract? If you do the math, we think it's about 5,000 barrels per sorry, 5,000 cubic feet of gas per barrel of of separated liquids. So that is on the basis that separated liquids are about half of the well stream of of ANS crude per well. You can guess that to meet the initial requirements, we'll require about 60,000 barrels a day of total production. And on the base of the type curves that that we've had and assessed and independently validated, that's a level we expect to hit by the time of first deliveries in 2029 or 2030. So so we don't anticipate a problem on that. But in terms of numbers of wells, it it slightly depends on when gas delivery becomes requirement because we will have been re reinjecting gas from the start of first production. So we'll have a gas bank to feed in. And then in terms of the decline rates of wells, new wells are being added, but but you're not getting the the initial rate of every well a year later. So so it's it really depends on timing.

46:23 When is the latest that Meggres can be drilled as a summer well? Can it be drilled as a winter well? Jay, do you wanna just talk a little bit about operational? Well, we're very fortunate on Meggres because as most people know, we're gonna drill that from the West Side of the Dalton Highway to the going to the East. And we had the option of doing it on ice or on gravel. We it looks like we're gonna do it on gravel now, which really gives us the ability to drill it as a as a late fall well, a winter well or spring well next year. And what we'll do is we'll trade off when we drill it versus the cost of a drilling rig and obviously drilling rigs are more expensive to operate in the winter.

47:09 So we're we're in the process of doing that right now. So fortunately, as David said, we're lucky to be along the Dalton Highway. It gives us a lot of optionality that others do not have. K. Thanks, Jay. So, given that it was promised to have funding in place by the end of q two twenty twenty four, what's the delay? I think I think I've addressed that that we expect to conclude the funding required over the course of the period up to FID in a time frame that's consistent with the need. You know, we're not gonna put a $100,000,000 on the balance sheet today and then spend it over three years. That's just not you know, it's not a a sensible use of capital.

48:01 So let me put to bed the idea that there's there's one magic reveal of all of the funding so that we never need to raise funds ever again. What we've said is we would lay out a strategy for having the least dilutive possible funding potentially to a point where it it would be larger than than the the amount of non equity funding would be larger than than the total amount of funding required. But that doesn't mean that there won't be requirements for equity at some point, but we want to make sure that it's on a basis where it's at our discretion to the greatest extent possible. And so we we will over the course of the next several months, we'll be announcing transactions as they close that that chip away at that total number.

48:49 But but having brought the total number down to a manageable level, it's opened up all sorts of options for us that we didn't have a year ago, and that's that's the direction of travel. The two well had a 500 barrels per day total liquids rate. The SLB type curves look very different. So, Jay, can you talk a little bit about what we think the type curve for an alkade development well might look like and for a a top set development well? Why the difference and and and why it is that we're intending to kick off in the top sets as high deliverability wells? So, yeah, the Alcade two was a 5,000 foot lateral.

49:38 The frac we put on it was was a slickwater frac, but it wasn't a limited entry frac. We learned subsequently and with the work that Tony has has done that we over perforated it. We also used, coarser grain sand than we we used in our recompletion. So that 500 barrel a day well, we believe will go to a 1,500 barrel a day well when we drill a 10,000 foot lateral, possibly even a little more than that and complete it with the, much improved frac. Those wells will be 1,500,000 to 1,700,000 barrel EUR wells. Our top set wells and our Kodiak wells are in the, let's say, point 5,000,000 to 4,000,000 barrel EUR wells with IPs, 2,000 or 2,000 plus barrels a day. The Eastern topsets, we believe, will be much better wells than that simply because they're shallower.

50:45 They had a a lower depth of burial, and and we've seen what the top sets have have yielded in other areas around our acreage. So we have a wide a wide range, all of them, as David has said, economic from 1.5 up to 4.5 or greater million barrel EUR wells with with, well over 1,500 barrel a day IPs. Yeah. Thanks. How big a challenge is building the supply chain needed to develop the assets considering the lack of oilfield service support to support widespread fracking in Alaska. But the first thing, Jay, before I hand it over to you is there's an awful lot of fracking goes on in Alaska. There's there's pumping units up there that are fully employed.

51:37 Part of the reason that we needed on the original two job to source, frac equipment from all over the world was because, the the existing frac equipment was was deployed. But, Jake, over to you. Oh, so, yes, it's it will be a challenge to get, hopefully, additional service providers and pumping high pressure pumping equipment to the North Slope. Fortunately, we have time to do that. And there are two main providers now. It'd be nice to get a third provider. We're working diligently to talk to providers both that are currently there and who are not there about, adding additional horsepower on the North Slope.

52:28 And as we've said, we'd like to go emissions free and that would, mean potentially having an electric pumping fleet, a high pressure pumping fleet on the North Slope. And so we're doing all of those things in advance. It's a huge job, but we know what's required and we're doing that in in advance and we'll build on the little steps as as we've all said to to get to that point. I know that it's it's easy to say it, but we're actually actually doing the work right now. Yeah. And and so that's that's all part of putting together the plan that that with with appropriate lead time, you can get there.

53:18 The the toughest piece long term is going to be constraining costs and and protecting ourselves from from predation because one of the places that people in Alaska most readily recruit from is other Alaskan companies. And and so we, you know, we need to be smart about how we retain and and incentivize the team that that and and the the groups that we build to to stay with the project. What is the likely percentage that the gas pipe gets built? Are your eggs in one basket? I I think we've sort of addressed that, but but it's it's not a a zero risk today. But as we go through those steps going forward, the risk will will reduce.

54:06 But but what gives us great confidence is knowing that LNG imports are substantially more expensive than building the pipeline and and using our gas. We know that the subsidy implied in the gas price we're offering compared to what had previously been proposed over the life of the project is between 3 and $6,000,000,000 to Alaska. We know that Alaska is going to have a vested interest in trying to secure that that benefit for for consumers and and residents of of Alaska. And, David, may I just add something? Yeah. Our original plan was did not envision a gas pipeline. So that is that is our original plan that we would reinject all of the gas. So all our eggs are not in that basket.

54:55 No. I see. I although, it it's right now, it's it's looms large in the overall financing package, but but it's if if it didn't go ahead, there are still options for off taker financing through the oil route and other stuff, but it's, you know, it's there's no doubt at all. It has a very positive impact on this project if it goes forward. Do we think that the Apuni East extension will be conventional? If Bob Rosenthal were on this call, he'd be jumping around and saying, you know, it's absolutely guaranteed. The and I'd say, you know, about three more times as well. The the the key point here is is we when we use the term conventional, what we're talking about is completed in a way that is not an unconventional completion because the the strict definition of conventional would really be coming from a source rock or or or not from a a regular porous reservoir. Of course, the Permian Basin now is treated as part of the unconventional because the approach to developing and and producing it is the same as the the Bakken Shale or the Haynesville Shale or the Barnett Shale or the Eagle Ford Shale.

56:10 So so the if if I rephrase the question, do we think that it's going to have porosities and permeabilities that allow us to use deviated wells with longitudinal fracs, you know, two or three stages rather than lateral wells with 50 stages? The answer is yes. What do we expect from the Apun East extension? We expect oil and lots of it, but until we drill it, you can't guarantee. Will PANTHEON become a US domiciled pump company as part of a US listing? Highly likely so. But just so you're clear, it may not it may not matter whether we change the top company to be a US company or not. If more than 50% of the shareholders are US based, if the then then it's already become a US domiciled company.

57:00 If the mind and management and location of operations are all in The US, then it's a US domiciled company regardless of of what the in terms of how it's treated. So the answer is we're all all almost certain to go with a US issue or on a US exchange as part of The US listing process, but but there are it's not as not quite as simple as as it being solely within our gift to decide that. The EURs for the Corley and Gillespie report Cawley and Gillespie report appears lower than the company estimates. Jay, can you discuss the main drivers of that difference? Well, yes. One is that an independent expert puts out a report that banks will rely on for reserve backed lending.

57:58 So it's naturally going to be more conservative, just as a result of that. They did an extraordinary amount of work. We're happy with it. And and, you know, they they just used some parameters that were a little bit less than than our parameters both in But, Jay, it's also for a different scope as well in in the sense that our our numbers were based on the full wine racking. Do you wanna Yeah. We did. Yeah. It was the full wine racking which would add, over 80,000,000 barrels as opposed to the colleague, Gillespie, of two eighty plus.

58:43 So in the original, we had four zero four million barrels. With the wine racking and the Cauley Gillespie numbers, it's around $3.64 or thereabouts. So we're not very far off when you include the wine racking, but it's only marginally less. And and for the benefit of those to whom the term wine racking isn't immediately familiar, infill wells at different levels, so offset like like a wine rack. And and there's some fairly sophisticated modeling of the parent child interference between the the base wells and and the infill wells, and that was gonna be a lengthy procedure. We just said, yep. And and that's exactly the work that's that SLB is now doing with their with their huge model. So Yeah.

59:32 SLB is gonna give us a model that'll that'll show exactly what that that interference is to optimize that development. Yeah. Okay. So I think there's a question about how do we see the future of the oil industry in Alaska. The answer is a lot of investment going into a lot of resource, and Alaska is gonna be, you know, a happening place for for the next decade or so for sure. The from a modeling standpoint, peak production for Apun. So we we are the the development of Apun will be integrated with initially the highest return wells, and then, obviously, work down your portfolio of of wells towards towards the economic cutoff. So I I wouldn't differentiate between the between the Uphun top sets and and the arcade zone within Uphun as as just a small subzone.

1:00:43 We anticipate that total production for Uphun, just the western portion on its own, would top out at around a 100,000 barrels a day. If we have Apun East successfully appraised, then then we'll grow from there. But but in terms of the profile beyond that initial rise to a 100,000 barrels a day, whether it's coming from Apun East wells or it's coming from Kodiak wells, we see an overall development growing to to as much as 300,000 barrels a day maximum rate, which could be retained for a very long time when you've got a resource of of the size that we're talking about. So in terms of guidance on specifics, as we get nearer to FID, we'll we'll be updating guidance on that.

1:01:43 The right. There's a question about the difference between market expectations and and whatever else. I've I I I think we've covered that. The but but just a a point about one of the the questions. The US IPO or The US listing is is one step along the way. It's not it's not the the only source of of potential capital support for the project. The so I think there's there's number of questions that that are conflating a financing strategy with executed deals.

1:02:30 The strategy that we've laid out is predominantly relying upon reserve back lending for post FID resources and a combination of industry transaction, structured finance, and equity and debt to cover the pre FID. And we are that's that's the strategy that we're now executing, and we will announce specific transactions as they become announceable because AIM has a continuous disclosure rule. Any hint of an ASX listing for PANTHEON? No. Being confident of the contingent resources is getting a loan.

1:03:21 Oh, yes. Sorry. He's getting a loan an option to resolve short term financing. There are there are providers of debt who who would lend against the overall package, but it it may not be the most attractive option. So we we are running multiple different tracks in parallel to create the competitive tension and to make sure that we are in a position to choose the best the best option for the company. The in terms of FID, how do you expect to raise? How much do you expect to raise in The US listing, and when do you expect to have that? We we can't talk about prospective fundraise until such time as we're we're doing a fundraise. So that's not one that that I can address specifically.

1:04:18 Would the sale to AGDC negatively impact oil recoveries? As I recall, gas injection allows maintaining reservoir pressure. The answer is that we will have plenty of gas to reinject over and above the over and above what we'd be selling to AGDC, that actually in the tighter reservoir, the wells aren't communicating with each other in any case to any great extent. And so the pressure support you get from the gas is actually expansion in the reservoir rather than from reinjecting gas. We don't think that reinjecting gas is going to make a great deal of difference to recovery, but that's that's obviously, there's there's a point at which in in the best quality reservoirs, you'll want to reinject gas to replace pore space because you have in just the same way as you want to do water flood in the best quality reservoirs. So there it's there's not a single answer for the whole thing. Yeah. But we've only assumed primary recovery. So, obviously, when we start looking at secondary and or tertiary recovery, then then that that would come into play.

1:05:29 But right now, it's all primary recovery. Yeah. There's no no part of of what's been proposed that would reduce the numbers for primary recovery from from what we've currently described. What what is the plan if AGDC doesn't get its FID? Oh, I see. Would we scale back the development? No. The development is is based on the resources in it. The current development is assuming that we never sell to AGDC. So the the scale of the development is based on the resources that are being discovered and the fact that we've got substantially more than just the 75,000,000 barrels that we we could point to as developable resources over a year ago to a point now where we've got appraisal and independent reports on on a nearly 400,000,000 barrel development.

1:06:26 The so why haven't we got a plan to retire the convertible bond given the destructive impact of its terms on the company's share price? The so I think we talked in the last webinar. Justin talked, I think, quite passionately about the the terms of the convertible bond. I think one of the things that's changed, if you notice, in the last year, we've had much less price weakness running into the the convertible bond amortizations. That's partly because we introduced jeopardy by placing shares into the hands of long term holders to give us the option to pay in cash. We will continue to do what's in the best interest of shareholders.

1:07:13 If we could replace the convertible bond with financing that was less dilutive to shareholders as part of the funding pre FID, then, of course, we would because our our goal is to do whatever's in the best interest of shareholders. But in terms of is it part of our base case, is it part of our base strategy for pre FID funding, our base strategy is that we're not retiring that bond. And and as I said, our strategy is to simply fill the incremental need, the residual need that's that's left there. Can we provide indicative timelines? Again, we're not gonna give specific timelines for specific steps along the way, but we will.

1:08:04 You can rest assured that the the length of time it takes and the complexity of dealing with 60 to $85,000,000 over a a two year time frame is a different order of magnitude than trying to assemble $350,000,000 when we were a a £100,000,000 company compared to 60 to 80 when we're a $300,000,000 company. The vendor financing talks mothballed, I mentioned earlier, that that we chose to proceed with the option that provides the the best possible outcome for for shareholders. And when it became clear that that offtaker financing would provide a less value dilutive approach than vendor financing, there's no point in proceeding with vendor financing if we've if we've secured the other. If if we need to, at some point, go back to other long term financing discussions, of of course, we would do so. But but for the time being, we don't see.

1:09:04 I said, apparently, that oh, no. Hang on. Sorry. Something's jumped. Oh, sorry. Development wells. So we've we've previously said we think the long term cost of development wells is around $15,000,000. We showed the waterfall chart coming down to that. We think the first few wells will be more expensive because there's always a learning curve and shakeout of of starting up a new operation. The whether they'll be horizontal or vertical, they'll be horizontal in in most of the accumulation. In the better parts that we anticipate in in the Eastern Topsets and and an up dip in Kodiak, they'll likely be highly deviated wells to expose a large section of the reservoir and then frac longitudinally.

1:09:55 So the fracs will be along the wellbore rather than orthogonal to the wellbore in in those places. And those will probably be cheaper wells than the $15,000,000 that we're talking about, not least because they use much less sand. I said I'd photo post a photograph of worn out shoe leather. I have a confession to make. I lied about leather. The soles of the shoes I use for comfort are actually polyurethane, and and I totally forgot to take a picture of the soles that disintegrated and I sent to be repaired. And they said we're so badly disintegrated, they couldn't repair. But I will not be so forgetful next time. I will photograph the next pair of shoes that I destroy. What I can tell you is, yes, we have gone to see an awful lot of investors, potential investors, institutions amongst others, and we will continue to do so because success in the long run is a is a numbers game here.

1:10:53 Interim funding, would it cover Omega as well? Yes. We've been specific. The 60,000,000 includes Omega as well. The 85 is if we have to add a Talitha b well. The when is AK Gas feed likely to start? The answer is, for sure, it's going to start within the next six months because if you recall, the the AGDC management asked the legislature to fund them to a point where if they couldn't get a FEED started by the end of the year, they would propose winding up AGDC. When will you hear from us next? At a minimum, we intend to update you on a quarterly basis.

1:11:41 But if there's anything substantial in the meantime, then then, you know, that we'll we'll provide the a webinar to discuss and provide an opportunity for questions. Will we keep the AIM listing after The US IPO? We've answered that already. Can we elaborate on negotiation potential helium project? Yes. So so I I think I did talk about it a little bit during the presentation, but just to reiterate, until there is a valid gas offtake that brings the gas containing helium down to a coastal location where there is general gas processing to strip out the methane, the helium has no value. But in the event that there is an LNG project, the value of the helium, if there were 50 Bcf of helium at $600 to $800 per thousand cubic feet, that's $30 to $40,000,000,000 worth of revenue. You can imagine that feeding that into an LNG project is a very attractive addition that project.

1:12:50 That's the reason that we secured the rights to the helium in the gas press agreement or secured the the right to have the helium transported down to the coastal location. The negotiation is now with the state on the terms on which helium would be developed and whether to incorporate it into an LNG project, whether it's a stand alone project, whether a joint venture, including the state and us and someone else, etcetera, etcetera. So I can't I can't get more specific right now because those negotiations are only just starting. But if we can create an asset from the helium to that we can deploy to avoid equity dilution by joint venturing that that asset, then that in just the same way as we did with the the natural gas, that that would be a sensible move for for investors.

1:13:44 Can I comment on Mangrove's position? I as far as I'm aware, unless unless something's changed, it's unchanged. The the zone of interest production oh, the reservoir turned out to be tight because of its depth. Alcade Deep. Oh, right. I I see there. So we originally talked about ALKADE and ALKADEEP as as being two separate things partly because we hadn't drilled down into the deeper portion. We have drilled down into the deeper portion. What we see is that ALKADEEP and ALKADE just look like part of the same system. Jay, correct me if I'm wrong. No. That's correct, David, and they they they look like identical in terms of porosity and permeability.

1:14:33 Yeah. So so but but they are poor quality than the topsets because they've had a a larger d max, and that's, you know, not not a surprise. But but I'm absolutely sure that that when we get to drilling zone of interest, alkade zone development wells, that's that's the point at which we'll optimize to maximize the recovery from the entire alkade zone, whether it's called zone of interest or alkade deep or whatever. We've we've called it the alkade zone because it's that sort of slump block that that is separately the 75 to a 125,000,000 barrels. Have you estimated the total dilution once floated in The US market after raising any other capital?

1:15:22 We have an estimate, but I'm not sure that we are in a position for legal and regulatory reasons to share a forecast of that nature. But it's certainly substantially less than it would have been if we had achieved a 100% of the funding requirement using equity alone a year ago. And that's what we told you we're gonna work on was bringing nonequity and nondilutive sources of financing to maximize the retained value to our existing shareholders because I'm one and and there are others are as well. The does the 85,000,000 include convertible bond repayments? No. The the 85 is new capital required beyond what we've already got available to us.

1:16:12 Is there a plan to increase the institutional share base? The answer is absolutely. We are talking to people and and trying to determine what is the configuration that maximizes the attractiveness to long term institutional shareholders. Of course, one of the things that's just happened in the last twenty four hours is that the Tambouran IPO on on the NYSE went ahead. That's a company which, in some small regard, resembles ours in that it's a preproduction asset that relies upon substantial infrastructure to get it to market in the event the in in Australia Northern Territories, Justin. Is that right?

1:17:01 Northwest and Western Australia and the Northern Territory. Correct. And so and so it's clear that there are investors for that kind of thing on the NYSE. But but a lot of the things that will make us more attractive to institutions are having a properly laid out plan for for getting to revenue and having the right governance, having the right independent oversight, having the right systems, etcetera. So we're we're doing that. The there's a question about whether JV with a big player would give us more credibility. The answer is undoubtedly that it would give more credibility to have large a player in there, but on what terms? Would it give the shareholders more reward?

1:17:54 I'm I'm quite prepared to have people write nasty things about me in in the Xiverse or the Twitterverse or whatever if if it's the cost of doing the right thing for shareholders and delivering the highest possible value. You know, I'm currently in a position, you know, where where I think we are making substantial progress and and that I think we're making progress that will deliver value in excess of what we would be able to retain if we if we simply sold out cheap. There's a question about a SPAC. The answer is it's irrelevant to us whether, you know, the the exact structure. But what I would say is that the there are many complexities associated with SPAC specifically that would probably make it a harder sell in terms of the degree of dilution than a direct listing along the way. With that, I think, Mark, we're done on the questions. We've answered all of them. So we've we've made you a liar about saying there are too many people to answer all the questions.

1:19:06 I'll I'll let you say what you need to say at the end before some just some wrap up. Thanks for that, David. Once again, thank you very much, Dave, for your time this afternoon. And if I could please ask you not to close the sessions, we'll now automatically redirect you for the opportunity to provide your feedback in order the company can better understand your views and expectations. This will take a few moments complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of PANTHEON RESOURCES PLC, we'd like to thank you for attending today's presentation, and good afternoon to you.