Pantheon Resources (LSE:PANR) — September 2024 Corporate and Operational Update

0:01 Good afternoon, and welcome to the PANTHEON RESOURCES PLC investor presentation. Throughout this quarter presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the q and a tab situated in the right hand corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself, however, the company can review all the questions for today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to David Hobbs. Good afternoon to you, sir.

0:31 Thank you very much indeed, Alessandro. Good afternoon to everyone. Thank you for joining us. We're going to be updating you today on progress since our last update talking about upcoming activity. We'll be reiterating why we're pursuing the strategy that we laid out just over a year ago, continue to work on that with a single-minded focus on turning our assets to cash flow, and we'll be describing two initiatives that provide exposure to optimization of that strategy. First, the drilling of the Meggiras one well to appraise the eastern top sets of Hapun, and second, moving the gas sale forward.

1:16 However, as we'll explain, these are options that give us a chance to retain more of the value for shareholders rather than being the only path forward. We're gonna lay out a conservative view of the timeline to get to first oil production. And I know that there are a lot of participants who are interested in the technical underpinning of both the Meggros one and the reservoir quality question overall. And we've arranged for Roger Young to present his work and address any questions that you may have in that regard. I'd ask you to note the disclaimer, but not to spend time on it right now. And just to reiterate that our primary core focus of the for the company is developing the 1.6 plus or minus billion barrels of of independently verified resource, bringing it to cash flow as quickly as can be achieved as and in as undiluted a fashion in order to retain as much value for existing shareholders as possible.

2:23 We've made a lot of progress since we last updated you, including the fundraise to cover the cost of the Megares one well. The that pad is under construction. It's more than 50% complete as we sit here today, and preparations are beginning to mobilize the rig in line with the expected timeline. I don't think anyone requires to be reminded that it's bigger than 600,000,000 barrels. Bob and Jay will talk about that more in due d in in due course. We announced earlier this week that we had appointed Philip Patman as our US based CFO, which is part of the continuing consolidation of our activities here into The United States.

3:10 And we've agreed the appointment of advisers on a success fee basis to move forward with strategic funding and ultimately to an IPO, and and we'll talk more about that in due course. The investment case that that we are laying out and have laid out is competing for capital in an environment where the big four basins, those are the basins that are most active in The US Lower Forty Eight, have been attracting most of the capital. And we need to be competitive with that in order to achieve our strategic goals in terms of raising the funding to develop the Aupun field and subsequently out of the cash flows of that, the Kodiak field. We have done a lot of work on benchmarking and engagement with investors, both potential and existing.

4:05 And what this slide lays out for you is that the investment case is competitive both against the companies who've been focused in those big four basins and also against half cycle cost of activity in those basins.

4:22 Our course, Rashi, as we said, remains developing the resources that we've discovered. And what we've said is that anything we do that appears not to be aligned with that must pass the test. Does it help us to achieve that value faster, at less dilution of value, or at higher value? And the two initiatives that we're going to focus on today

4:46 are enhancements to that core strategy. The first is drilling the Meggres one well to secure the development timeline for APUN rather than start having a stop go on that development timeline. Success in the mega as well will enhance the startup ramp up cash flows because the wells are going to have higher initial production rates and therefore reduce the size of the cash sink to get to cash flow self sufficiency. In terms of the engagement with the Alaska Gas Development Corporation Gas Line Development Corporation. Sorry. That is being pursued because it provides us access to non dilutive funding and therefore reduces the expected value dilution in our overall financing strategy.

5:33 And we can we can address that in more detail in due course. But those two initiatives, if they work, expose us to a higher upside for investors, but our development of the core resource is not influenced in any way. Geologically,

5:52 there is no reason why a result of Meggres would alter the underlying assessment of the Apun and Kodiak fields. And in terms of access to funding, there are that we will have to pursue other options in the event that we don't ultimately see the AGDC project move to fruition.

6:17 So I'm gonna hand over to to Bob and Jay at this point to discuss MegaRez both in terms of the prospect and the activity. Well, thanks, David. So this well is really truly a collaboration between Bob's group and the engineering and the operations group. As David said, we're targeting six zero nine million barrels over three TCF of gas. Roger will show you and and Bob will talk about these sands are the eastern top sets, East of the Dalton Highway.

6:50 Our pad is along the Dalton Highway, so we're we're drilling a directional well. It's a relatively simple well. It's about 10,400 feet. Measured depth, about 8,400 feet total vertical depth. And the maximum angle is about 50 degrees.

7:10 And we've worked with Bob's group and with Roger, with SLB, with US coring. And Bob, jump in at any time to ensure that we can get all the data that both we and Bob and his group want to get out of the MEGRA as well, coring and sidewall cores and e logs, etcetera. Thanks, Jay. I was, like, kind of anxious to to jump in there and just say,

7:41 look. I've been in this game for fifty years. This has gotta be one of the best prospects I've ever seen. You I think the the team agrees with that, and we're gonna discuss it in more detail with Roger in a in a in a few moments on why we believe that. It's a huge prize, and, you know, we're we're we will get into the details. But it's, you know, it's a it is a great prospect, world class, and, you know, we're testing, you know, an excellent reservoir here. Again, those details in a few minutes, but, you know, I was just anxious to step in and make that statement to everybody. Yeah. Gonna we're gonna use oil based mud, which is a little more expensive than water based, but that reduces the swelling of the clays, which is what has caused us some some issues in the past, and reduces the drag.

8:36 And we we just believe that we have a really, really great plan for this well, as we said, taking full course, sidewall course, logging while drilling and the e logs. And as as as David said, success for the eastern top sets yields us less capital per thousand barrels a day of oil flow rate. So that's good for everybody. And also, as David said, more quickly to self sufficiency on on cash flow. I'm I'm confident that there are gonna be questions about what constitutes success. Before we we before we get on to this slide, which which is merely to remind that regardless of the outcome of MEGARES, the ARPAN and Kodiak developments will proceed.

9:35 But, Bob, do you want to to talk a little bit about the difference between the threshold and the and and the expectation and what success how we judge success. Sure. Right at the moment, our expectation our expectation and, again, we'll show you the work that is the foundation for that expectation, is we're we're expecting to see reservoirs between, you know, 20 to 25% porosities, five to 35% millidarcities, and that is significantly better than anything we tested at alkade two, fifty to even 200 times better in terms of the permeability. However however, we have a good result. We have, you know, good reservoir in the pipeline state, well, at the western top set. Hasn't been tested yet in that in that zone.

10:31 The if we could find that kind of quality reservoir that we've already seen in the western top set, that would be a good result. We're expecting significantly better than that, but that in itself would be a good result.

10:51 Thanks. So the to summarize, we're not until until we have drilled the well, until we've got the cause and understand the reservoir, success is gonna be measured in terms of the quality of reservoir we encounter. The geometry of the well will determine what flow rates one would expect from that geology, and that's the reason that we won't be today sharing target flow rates or anything. But the critical point I just want to bring home is if the mega as well encounters reservoirs that would yield flow rates that are commercial, whether they are as good as our expectation or not, that would constitute a success in the case of mega. Moving moving forward then, as as we said, we we think it's as good an exploration shot as as anyone has drilled in a long time, and certainly, we think it's the the best well-being drilled this year. But in the event that it doesn't proceed, we think we've got a very attractive core development benchmarked against the competing uses of capital, we will pursue alternative funding pathways in the event that that Meggiris doesn't deliver as expected.

12:03 In terms of the gas sales initiative, many of you would have seen that AGDC shared the first phase report, the draft from Wood Mackenzie. The the overwhelming conclusion of the report was that the pipeline makes sense for its phase one domestic or in state gas demand and secures the optionality for a really much, much better outcome in the event that the full project moves forward. And we will be continuing to engage constructively with AGTC on moving this forward. The again, just to stress, if this project doesn't come to fruition in terms of the gas, our base injection plan, all the metrics that we've we've shared with people are have been on the basis that we will be reinjecting gas.

13:04 Initially, that requires one injection well for every three production wells. In due course, you you begin to reuse old production wells for injection. So I I just don't want people to to think there's a one to one correlation.

13:19 In addition, we will need to have injection capacity for more than the potential gas sales offtake as well. So gas injection continues to be the base case that we're assuming, and we will only move to a different plan when that has been secured. In terms of the overall timetable, the timeline we've shared is assuming that it takes as long as we can imagine for the environmental impact statement. So allowing for a twelve plus months overrun on the expected schedule, the core of engineers has recently adopted regulations requiring it to actually process in eighteen months.

14:05 But we we don't want to presume that we're going to achieve the fastest CIS that has has been done. And and so this is a conservative timeline. You'll see that subject to funding, we have plans for additional appraisal, the the three wells in Kodiak and the further one in the Western top sets, the precise timing of those to be confirmed. But what is firm in our planning is drilling the East and top set with Meggres, continuing the development planning and and regulatory approval work with a view to having FID late in 2027 and being able to begin drilling production wells, installing facilities, and undertaking the pipeline connection for oil exports.

14:56 In terms of the gas project, as as you see along the bottom there, that is an optimization project, which will add appreciably to the value of the project, will significantly reduce expected dilution, but it's not the base case in terms of of moving the project forward. At that point, I'm I'm going to pause to address some some questions. There will be an opportunity for people to ask questions related to Bob and Roger's more detailed presentation on Meggres and and the reservoir quality assessments and and the work that Ecise has been doing.

15:34 For the most part, we are going to respond to questions by aggregating them and answering them in writing where that is the most efficient way of doing it. But there are there are two or three questions that have been put both before and and during the course of of this presentation. And so I just want to to address those first. The one relates to plans for a US listing. And I just wanna clarify because I know it's a question that a number of investors have been asking over the last several months. You'll you'll recall that PANTHEON first talked about exploring a US listing back in 2020, so it's not a new topic.

16:20 But what was clear was that we were at least a year away from being in a position to act on any market window that related to a US listing because there's there's background preparatory work in terms of building controls and documentation, etcetera, that that would just be good governance for a company in any case. And, certainly, that's that's what whether we were pursuing a listing or not, PANTHEON would be undertaking. What we're aiming to do is to get that work done to a point at which we have between three and six months maximum runway to get to an IPO. We're not going to proceed with an IPO unless there is good reason to believe based on the market testing that it will be enhancing a value for shareholders.

17:09 There is limited money being committed to that process because the vast majority of the cost of an IPO are, a, they're back end loaded, and, b, we are they're they're based on success fees. So there has been a minimum level of of money spent doing work, which is predominantly required for the effective management of the business to put ourselves in a position where we have a realistic prospect of an IPO should the market allow it. In terms of what specific form that will take,

17:42 that will be subject to the detailed advice of the investment bankers, of the lawyers, of the accountants who who will be working on the program. So it's not a commitment that we are going to be a foreign issuer or a US exchange or a US issuer on that. That will be a decision that's taken at the time based on the regulations and the tax treatment at that time. Similarly, I I'm not going to

18:10 be definitive on anything that that isn't decided, but what I am gonna be definitive on, we are not going to be delisting the shares that people currently own on the AIM market in London. We will continue to have a listing for as long as it makes sense on on both The US exchange and The UK exchange in the event that we do conduct the IPO. So I I hope that that that's as clear as it can be. But, there is not a farm forget cost associated with an IPO that we would only move forward having shortened the runway by having done the preparatory work, which the company needs to do in any case. And secondly, that we are not going to be canceling shares that are listed on the AIM market. In the end, the market will determine where the liquidity moves to. Right now, it's clear the liquidity is on the AIM market, and it would be madness to to be forecasting the end of that.

19:12 In terms of there are some questions around MEGREs. I'm gonna leave those for for later in the in the in the presentation. In terms of time frame for moving forward with the gas project, that is in the hands of AGDC working with Goldman Sachs and and potential funding partners. And I think everyone's aware that the WoodMac report was requested by the legislature in terms of providing some backstop funding to help ensure that the decision on moving forward with front end engineering design could be made as quickly as possible. The precise timing, though, of of that process completing, I'm not in a position to share anything other than to say that we are engaged in a constructive way with AGDC and the other stakeholders in the project to help ensure that it moves forward as quickly as can be the case.

20:18 The the final question I want to address now before we move into Bob and Roger is why should we have confidence in the ability to arrange alternative funding given that we have been working on this for the best part of the year?

20:40 The answer is that we've been working on it for actually somewhat less than than a year on the basis that was a lot of preparatory work that had to be done before we could begin that initiative. That we have we took an active decision to favor off taker financing over vendor. You'll remember when we started out, we said there were a number of strands that included vendor financing, off taker financing, and and potential mezzanine and other ventures. We chose the one that we think has the best chance of delivering the best outcome for investors.

21:15 We have other activities ongoing, which we're not gonna be providing a running commentary on, but I know that that the board is aligned and engaged on ensuring that we deliver certainty around our ability to move forward with the underlying development of the Arpoon and Kodiak fields as quickly as possible and and not not taking any risks on not having that funded. With that,

21:43 Bob, I'd like to turn it over. There are some additional details in in appendices, which you can read at your list, but let me turn it over, Bob, to you and to to Roger.

22:00 Thank you, David. I'm gonna move this to the first slide, which you've which you've already seen. I just just wanna say something before, you know, kinda before we jump into this. This is gonna take just a couple of minutes. You know, I've been thinking about this over the last couple of days, and I I've been in this project since the very beginning, and it's now sixteen years. And I think I can honestly say that we are in the best position that this company's ever been in.

22:39 I'm talking to a lot of investors who've been either in PANTHEON for a long time or Great Bear for a long time. And, you know, we we you know, as David has presented and Jay's alluded to in in the beginning of this, we we now have certified reserves by the largest, some of the most prestigious auditing for firms in the world.

23:03 And some of these resources are not only certified, but they are valued. And I've noticed over the last month or so having conversations with people that they do not understand that these these different groups, independent experts, have actually given us a value for some of these resources. And I just you know, this should give confidence to people and our shareholders, you know, on the value of our company. You know, we're about ready to embark on this this well. Megrez, as I stated, it's it's a, you know, world class exploration prod project.

23:49 And and we don't we're only doing it

23:54 because it enhances all of our, you know, our, you know, attempts to get the Ophoon field onto development. It's clustered. These are a cluster of resources that are around the Dalton Highway, you know, Meggres or Opun East is part of that project. It's you know, we're testing 600,000,000 barrels, very low geologic risk. We're looking at very high quality reservoir. As stated, this is the best reservoir we're gonna be testing. Roger's gonna be spending time, you know, explaining that, how we how we get there, and we are drawing this along the Dalton Highway. And on this, the the the the object of the first well, obviously, to find light hydrocarbons, but also maximize the amount of data that we're we're gonna collect.

24:58 So, you know, we've had this slide up a couple of times in the past. I'm not gonna talk in detail of it, but, you know, I will say one thing. It does show we have found a lot of hydrocarbons already in the Kodiak field. We found a lot in the Hapun top sets in the West. We're drilling up there to the, you know, shallower, the next set of top sets, which are Meggres.

25:27 And I just wanna say something about the the amount of hydrocarbons we've already found. The 2,500,000,000 barrels of hydrocarbons, we've already found found, explored for, and found. So I'm pretty proud of the team, everybody, the geologists and the engineers who've been who've who've done this work. And we're moving over, and we're testing MEGRES, which is, again, shallower, just the next set of top sets, younger, and really, really excellent reservoir. I'm not gonna talk in detail off of these two slides. I'm gonna after I you know, in a few minutes, I'm gonna turn it over to Roger, and he's gonna explain to you what these mean.

26:15 But for the geoscientists and the people who are who are knowledgeable, and we're we're looking at it, the the slide on the left, the the color displays with the you know, particularly, you you see where the well the well plan is what we're where we're targeting and what we've already hit at Opun

26:39 West in the top set over there. The reds and the yellows where we're drilling are telling us we're we're going into some pretty good reservoir. And when you look at the next slide of the on the on the right there, which is another amplitude display of the using what we call the AVO display, you see all these greens. That is telling you something. You can keep these when we're drilling the well, you should have these two slides just kind of looking and saying, you know, this is, you know, the expectation from these two the the these data is we're gonna be hitting some very, very, very good reservoir. And just just as a point of interest, and we brought it up in the past and at other webinars and other talks, We have intersected this reservoir already, but there have not been intersected where we see a track geometry for hydrocarbon.

27:39 So if you look at the line on the left at pipeline state above the Opun topset, we have sidewall cores that are telling us that already hard data that this is good reservoir, 20 to 25% porosity, and in one of the sidewall cores, 35% permeability. Significantly better significantly better than anything that we've intersected, but importantly, tested over at two. I think with that, I'm gonna turn it over to Roger because he's gonna explain all this, and I I think that's what most people are waiting for. So, Roger, over to you. Alright. Thanks, Bob. I'm going to first explain what AVO is, amplitude versions with offset.

28:31 And then when you're all experts at AVO, we're going to go exploring. Seismic data shot, it's shot with lots of sources and lots of receivers. This results in some ray paths going vertically and also some ray paths that are at angles. The ray path that goes vertically samples the physics. It samples the rock in terms of its compressibility and its density. Whereas the ray paths going at an angle, they sample the rock in terms of compressibility, density, and shearability. So we have the physics are different. We have two different sets of what's going on here. In fact, we can actually take one seismic survey and turn it into two different volumes of information so we can play one off the other.

29:27 You know, it's not all that different from when you're on the medical industry when you get an MRI and you get a CT scan. Sometimes you need one, sometimes you need the other, sometimes you need a combination of the two to be able to assess what's going on. When, when we're using these two different data sets to understand our rocks, you can understand how a shale is very layered. Therefore, it will be very shearable compared to a sand that is not layered. In terms of fluids, water is not compressible. The oil with gas in it is compressible. Gas is very compressible. So these two different datasets, if you want to call them that, these two different volumes can give us a lot of insight into what's going on in the rocks.

30:19 But the we have to learn what it is when we compare one dataset to the other dataset. What is it we're really looking for? So what we do is we cross plot the two datasets. The two important things about the cross plot are firstly, how far do the points move from the origin? And secondly, which direction do the points go? So every point in the dataset falls somewhere in this in this cross plot space. On the cross plot on the left, you'll see where the arrows emanate from. That's point zero zero. That's when the data sees nothing. And then when the seismic state does starts to see something, the point will move in some distance and some direction.

31:10 The distance it moves is very important because that's a very much a function of lithology, it's function of fluids, it's a function of thickness, and the direction it goes, which is also called aviotype, gives us a lot of insight into what the rock properties are, whether it's bore pores, whether it's laminated or blocky. It often can help infer depositional facies. So this is a very interesting, dataset to have, especially when you have the two to work together. Discoveries we've made already, the current opoon topsets and the Kodiak Basin floor fan fall in the area circled there. These sands are harder than the shales.

31:59 That's why they fall in the direction that they do. That means if the sands are falling that direction, the shales fall in the opposite direction. We're going to change and go to the MEGRES play. MEGRES is younger, it's shallower, it's more porous. The sands are certainly going to be softer than the shales rather than harder than the shales, so the whole AVO story flips and turns the other direction. So the circles that you see now are where the Meggres Sands will fall. It's not much of a speculation. That is where they'll be. In fact, these these these zones encircled there are where the sands fall for Horseshoe and Pika and Willow and Alpine.

32:52 That's where the Alpine field falls. And within those zones, we're looking for the bright and on the left volume, the distance from the origin, we're looking for the points to get to red that would signify that they were anomalous. And on the right side, we're looking for the areas where it says three, two, and one. Those are the aviotypes of three, two, and one. Those are gonna be the best rocks. And within those best rocks, the AVO type three, they're going to be the best of the best. So now that you're all experts on AVO, let's go exploring. To set the scene, we're going to look in the area of where Ed Duncan has previously talked about how they we have these two shelf margins prograding and the confluence of those two has created this this area that we call the funnel or all all the explorers in Alaska call the funnel, and Duncan calls it the super trap.

33:52 So we're going to look at this arbitrary line. Starting on the west side of that arbitrary line is where the Talitha Well is. Continuing down the arbitrary line, we go to pipeline state. Yes, sir, Bob? Before we do this yeah. Before we do this, I wanna make a point when, you know, that when Roger just blithely passed through when he said Alpine, you know, he's he's very modest. Alpine is a billion barrel oil discovery on the North Slope, and it's the last truly known billion barrel oil discovery on the North Slope. It's producing. Roger is, you know, one of the people attributed to making that discovery, using these techniques.

34:42 So I just thought I would just point that out again. Sorry. So he just kind of he kinda jumped over Alpine there. I thought I would just chuck that in. Go ahead, Rob. Oh, Bob. Thanks. Oh, the arbitrary line goes from to pipeline state, then to the end of the shelf margin, then we're gonna jump across the funnel or super trap to the shelf margin on the other side To continue setting the scene, the HRZ, the high radioactive zone as it's called, that's our prolific hydrocarbon source. Here on the left, I'm I'm enhancing what the Tilitha Well looks like.

35:29 The first track in that Tilitha well shows the lithology, the sands green. I mean, the sands are yellow, the shales are green, And the second track is a blow up of the porosity. The green in that porosity is oil. As you can see, it's filled with oil from the HRZ all the way up to the seal. Every sand is filled with oil. That's billions of barrels of oil in place. Just a testament to what a tremendous hydrocarbon source we're sitting on top of. This is the area we're going to explore today. This is the funnel area. So what we're looking for in terms of AVO is large distances from the origin, meaning in this, it's anomalous.

36:16 In other words, we're looking for the reds as shown in the cross plot and the seismic section. This is the seismic section of that cross plot. So the color bar on cross plot is the same color bar that's used in the seismic section. So we're looking to see where the reds are, and the first thing you'll notice is, well, there's a whole bunch of reds there. That's a very anomalous horizon. Something's causing that to happen. So we're going to click on it and see what how it maps out. So the map on the left is showing what that what the contiguous body looks like that the computer has pulled out. But the color of that map on the left is the color of AVO types shown in the cross plot just below it.

37:06 The greens are type three, the reds are twos, and then there's some very light reds that are ones. Greens are the best. That's the best of the best. But what's even more impressive is that this map does not contain type fours and fives. I often see when I'm using AVO to explore, which is what I do every day. When you have a map that is threes, fours, and fives, it tends to not work. When you have an anomaly that's ones, twos, and threes, it tends to work a very high percentage of the time. In other words, there's a difference between a type three and a type three.

37:53 A type three that has neighbors of fours and fives is something else probably. When a type three has neighbors of ones and twos, those are the ones that work. So continuing down, we pick the next horizon, Another map, ones, twos, and threes. Perfect. It doesn't get better than this. The next one below it, there's another one, ones, twos, and threes again. And the next one. Ones, twos, and threes. You put them all together. You see how nicely it all falls together in that trap. This is a spectacular set of stacked anomalies.

38:40 What could possibly be causing this? These are just anomalies. I'm a great believer in Occam's razor. See Occam's razor playing out over and over again. In my words, Occam's razor states that the simplest solution to explain a set of circumstances is likely the correct one. Simple. That's what works. So here we are with with this with these prospects sitting on top of a prolific hydrocarbon source that has put billions of barrels into the rocks above it. We have a trap that's set up above it that's caused by the funnel. We have numerous, not just one, we have numerous AVO anomalies with AVO signatures that are the type that work.

39:34 How do we best explain what's going on? It's not one. It's multiple. And these anomalies are consistent with what's found that horseshoe, pica, willow, and, of course, alpine, alpine. My opinion is that the simplest way to explain all this is that we are sitting on on a trap that is another elephant. We have a new elephant by the tail here. When you look at the, management, explanation or prediction of 609,000,000 barrels and 3.3 TCF gas, that is from three of these horizons.

40:22 PANTHEON has mapped nine horizons in this, and we're just talking about three. This is really, really exciting stuff. It it's it's tremendous. And the simplest way always remember that. Simplest way to explain something is the one that's right. You wanna say something, Bob? Go ahead. Yeah. I wanna point out that, you know, Roger and using Roger's technique in the tighter rock, we've already found again 1,600,000,000 barrels. This this stuff is the classic seismic attribute work that you use around the world for looking for conventional good reservoirs with hydrocarbons in it. And that's what we're seeing here at Megrez at the, you know, at the Megrez location.

41:20 We're gonna hit a number of zones, and, you know, we're gonna test out the idea. You know, I'll turn it over to I I think Adrian. So so there are no there are no specific questions relating to the technical case, but I I there are a couple that that I know people brought beforehand. The first is can we reach all of of the nine horizons that we've mapped from the the the west side of of the river? No. The the answer to that is is no. The but and I wanna point out that because of the nature of the trap that we're testing, which is actually a structural trap, there's a big structural nose that's associated with it and a fault that gives us some of the trap, we have the ability to test several zones stacked on each other. If this was just purely, purely, purely a stratigraphic trap, just a a simple very simple stratigraphic trap, that we will that could be a difficult situation. It's not, the normal situation. But we do have the ability to test probably three zones.

42:40 But, David, ultimately, with a larger rig, we can and I haven't looked at every one of those, but we can we can reach the majority of them with a larger rig. Oh, we can reach a lot longer rigs, you know, to get the Well, that that we'll take the easter nodes. Yeah. I think that's what the question was getting at. And I was yeah. I I I recall when we were determining how far to lease across the river, it we it was based on what could we reach from a development perspective, recognizing that that the development wells are are slightly more complex than than just a simple 45 degree exploration. Yeah. And looking at that, we thought we could get to the extreme eastern edge. And and if we got to to within that edge, we'd probably drain all of those all of those sands outside the marginally outside that image.

43:32 Yeah. And the second question is slightly you know, it it fits into the the talking about its stage. And and and if we if we've got a success at Magro's, I I think my my guess is that the hardest thing in the world is gonna be to keep Bob quiet rather than that we're going to be reticent about promoting it. We've we've over the course of the last twelve months, we've we've definitely encouraged in into the industry discussion. There have been a number of papers related to our rocks that have been presented at various conferences and stuff. That that activity will will clearly step up. And, you know, in general, the you know, there's there's a lot of engagement that Jay and Bob and I and and other members of the team are having with with industry.

44:27 I I I suppose it it shouldn't come as a surprise that a lot of those discussions don't happen in public. They happen privately. The but there is there's certainly no shortage of of making sure that the relevant people are aware and and introducing a a broader community of people to it. I think with the the maybe there are there are a few more questions that that are sort of more specific. They relate to IPO process and that kind of thing. We'll we'll address that in in the written answers that we'll eventually post. There's there are two outstanding questions, though, that I I think we should answer. The first is it looks like we've got no drilling timetables for 2025.

45:13 And and I'll I'll kick off. But, Jay, I know you you may want to say a bit more. Clearly, the drilling window outside of using gravel pads is is winter. And so, you know, any drilling that we haven't got currently funded is subject to funding. In the event that we were to be drilling further appraisal of Maegres, for example, that that could happen anytime during 2025 subject to funding. Yeah. But in terms of the other wells, they would all require ice ice packs. Jay, do you wanna talk a little bit about about, you know, how how quickly we could get that together? Yes. We we certainly could get together drilling for the winter of twenty twenty five, 2026.

45:59 And, you know, as as David just said that that would be either Talitha B or follow-up wells at Theta West, or possibly if we had the funding, both of those and have a nice road that goes to, a Talitha B Pad and on out to the updip Theta West. So, that that could certainly work subject to funding and those would be pretty exciting wells, obviously. Can I Go ahead? Make a comment. One one of the things that I think that people take take for granted is in what they should understand is with Meggres, we're, again, drilling off a gravel pad, which means that we are and we're collecting whole core, sidewall core data, and and we're getting that data.

46:57 You know? And I fully believe we're gonna make a discovery. And and once we do, let's we've we've logged the well, we released the rig, and there will be a period of time, a short period of time, in in which which we will analyze that core data, as David has said, to make our decisions on how we're gonna test the well, but we will go out and test the well probably early in the winter. So, you know, kind of in December, we've collected the data. I've Ed Duncan has already talked to the different labs to expedite the the the data such that we can make decisions on how we're gonna test well. Up in Alaska, that's not the normal process. In Alaska, you have a winter, you drill a winter well, you go out, you collect your data. Next winter, you come out and test it.

47:49 So we have the advantage of of actually as a continuous process with short breaks to test the well and maybe even later in the year, you know, with the pad, maybe even do a slightly longer test production test. So we will have a continuous process of evaluation and testing of this of this well if it's successful. For for many people, that could be a drill season and then then a test season and then another test seasons, particularly if you have multiple tests and you wanna do it for more than fifteen minutes or a day. So it it it it's we have the ability to expedite that process. So that is gonna be that's the way I see it over the next twelve months just on MEGRES.

48:44 I mean, it's a fantastic thing that we, again, have the gravel pad and gonna have the ability to do that. And and if we if we wanted to drill an additional well to to probe other parts of of it, we'd we'd have that flexibility. So it would be it's it's simply we didn't want to put put down plans that we didn't have funded. But but actually, because of the gravel pad, we have have the opportunity for for activity throughout next year in in a variety of different ways. Jay, there's a question about timing for completion of the pad mobilization expected spud. What do you want to Yeah. So as David said earlier, the pad is actually more than 50% complete.

49:34 We've targeted a November 1 spud. We think that is easily achievable. It would be great to actually spud a little bit before that. We're not promising that, but that would be a nice thing to have. It's not a long well. We think the well will be completed by the end of November there or thereabouts. And then we will have collected our data. We'll turn it over to the experts for analysis. And then once we get that data back, we will have collected some PVT data, lots of logs, cores, sidewalk cores. As David says, we will we will analyze that and determine, do we do a small frac, small acid frac, what whatever it might be to complete this deviated well. It's not gonna be horizontal.

50:29 It's not gonna be a vertical well, but a deviated well to the so that we get the best completion possible. And if we're if we're thinking of in of intersecting three different zones, that that's why, again, you know, in in ultimately, in development, my one may well be combining what is the geometry and and whatever else. So that's that's the reason. Until until we actually see what it is we're intending to test, it's just not possible to to be definitive about what what the expectation of the test. Roger, I think it's probably one for you about do we can we tell anything about the phase risk in terms of, for example, is there free gas? Are we seeing, a difference between oil and water? Is there a chance that that it's gonna end up like alkane too?

51:23 Trying to determine separate gas from oil on seismic turns out to be really quite difficult. It sounds like it should be easy because gas is far more compressible. But if the amplitudes that we have here are really consistent with it having free gas. Free gas could should get a lot brighter than we're even seeing right now. So, no, I I don't see evidence of free gas even though it's tough. Bob, can I can I add something? We are we're we're you know, in terms of geologic, you know, distance, we're we're stone throw away where we've tested light oil from the same source rock. It's in the same part of the generation window.

52:10 It's it's a it's a light all these things are light oil reservoirs with a certain GOR bang. That's what that's the expectation. That's what I think overwhelming what the seismic attributes are are telling us. Roger's key point is in this reservoir, the what we are looking at, we can now individually, we're seeing the individual reservoir, something we couldn't see to the west, but we're seeing the stacked individual reservoirs and being able to identify and give a feeling for thickness, get a feel for what the you know, what is the fluid type. And and But it's a it's a How thick do we think these are we are we looking for 1,000, or a thousand foot sands?

53:00 Okay. So in the geologic environment that we're in, these sands are gonna be somewhere between set each individual one will be 75 to, let's say, a hundred and hundred and twenty five feet thick stacked on top of each other. And that's what they look for. With the best with the with the best part of the reservoir at the at the top. It's you know, you can look at published stuff at Horseshoe and Pika. It's gonna look very similar to that. Yeah. I'd just like to remind everybody that we're six for six using Rogers AVO on finding Yeah. Hydrocarbons. Yeah. Fluorable hydrogen. So so just to to one final thing, and and maybe I wasn't clear earlier.

53:47 When we're looking at the different initiatives, we're not doing this sequentially. We're doing this in parallel. We've got ongoing activity relating to alternatives that that don't rely upon either MEGRES or or AGDC activity coming good. It's not that we're focused solely on those things, hoping for a good result, and then we'll pick ourselves up and dust ourselves off and and go to the next plan. We're we're running everything in parallel. A number of things are not mutually exclusive. If if we're in a position to monetize the gas, that doesn't mean that we're not interested in a strategic transaction with with a potential partner, etcetera. So the the full attention of the board is is on running all these processes in parallel along the way.

54:36 I'd say there there are some other specific questions that have been asked, and and we will we'll group them together and and post the the answers. But I just want to thank everyone for investing the time to to engage with us. Thank you, Roger and Bob, for for sharing some of the detailed under the hood science. But to leave you with with one clear message, which is that we are working together as a team to deliver the cash self sufficiency from developing the resources we've already found, That nothing is is going to distract us from making sure that happens, and anything that we're doing fits clearly into boosting the ability to deliver on that. We will, over the course of the next several months, be providing some updates about specific parts of the project, not not in terms of corporate webinar, you know, talking about the company so much as talking about processes because it's clear that investors have concerns, for example, about regulatory the the regulatory approval and and how we get there. They have questions about what what the potential gas market may be.

55:59 So we will seek to make sure that we provide the information to help investors to make informed decisions around what level of risk they're comfortable with. But I can tell you that in terms of the PANTHEON board, we are very comfortable that we have a development plan, which we've sought external validation, not just of the resource, but also of the development plan from people who've developed these things in Alaska before. So project assurance work that will be hopefully in a position to to share and and bring investors to the same level of understanding of the risks and and the potential of this as we all have from inside the tent. With that, I'm gonna pass you back to Alexandra for a few administrative details, and and thank you once again for joining us. Thank you, Bob. Thank you, Jay. Thank you, Roger, for for your time.

56:58 David, thank you very much for that, and thank you all for updating investors today. Could I please ask investors not to close the session? As you know, we automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This will then take a few moments to complete, which I'm sure will be greatly valued by the company. On behalf of management team of PANTHEON RESOURCES PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.