Pantheon Resources (AIM:PANR) is an oil and gas exploration company with a portfolio of high impact projects located on the Alaska North Slope. Pantheon’s assets include major oil appraisal and development projects namely Theta West, Talitha and Greater Alkaid. All projects are located immediately adjacent to the Trans-Alaska Pipeline System and the Dalton Highway, the major transportation artery for the Alaskan North Slope.
The company estimates these three wholly owned projects to contain approximately 17 billion barrels of oil in place and over 2.2 billion barrels of recoverable resource.
Last week, Pantheon Resources hosted a shareholder presentation and Q&A session to review its drilling and testing operations from the winter 2022 season, and develop its plans for the future. The company’s revelations were certainly of interest to its retail and institutional investors.
Pre-drilling objectives achieved at Theta West and Talitha
Central to Pantheon Resources’ recent shareholder presentation was its discussion of the outcomes and conclusions from the highly successful Theta West and Talitha drilling and testing operations which took place this winter season. The company confirmed it had achieved its pre-drilling/testing objectives in both wells, with the confirmed presence of high-quality light oil and guaranteed movability of this oil. An RVStrat (Rock Volatilities Stratigraphy) of the Theta West 1 Well further revealed >1,460 feet of significant oil saturation indicated by 1,460’ of continuous oil bearing cuttings in its Basin Floor Fan complex.
In addition to reviewing the winter 2022 season, Pantheon Resources also touched upon its implications for future project development, as well as the next steps in the operational programme, including an insight into the Alkaid #2 well planned for Summer 2022. The rising price of oil as a result of the ongoing conflict in Eastern Europe has made the Alkaid #2 reservoir a very exciting project, with today’s oil value raising its value over the $1 billion mark.
Fully electric operations
The company also aims to extend its well-testing facilities by merging Canadian and Alaskan methods to create fully electric operations which would significantly reduce the business’ operating expense and allow greater scalability.
Finally, Michael Duncan, Vice President of Exploration at Pantheon Resources, reported the company’s operations plan for the 2023 Winter Season as “double the plan from the 2022 Winter Season”, with 2 new drills and 2 re-entries scheduled.
Investment outlook for Pantheon Resources
Despite Pantheon Resources’ share price falling by almost 15% in the last five trading days, its stock still stands at 125.5p, representing a 55% increase since the start of the year (YTD). Pantheon is still considered by many to be successful on both a financial and operational level throughout 2022 and in the years following.
Although the firm reported a $4.4 million loss for the six months ended 31 December 2021 compared to its $3 million loss for the same period in 2020, widening losses are not particularly surprising for businesses operating in the exploration industry. Pantheon Resources’ exploration areas certainly look prosperous and the company is in a strong cash position, with a balance of $92.7 million at the end of the 2021, up almost $63 million from the previous year.
