Pantheon Resources PLC recently held a post-AGM investor presentation, they sought to provide key insights into their ongoing projects and future plans. The following is a breakdown of some key highlights from the discussion points:
1. Kodiak Development Update
– Discussion on Kodiak’s development is ongoing, with a significant update expected within two months. This indicates active progress and a focus on enhancing reservoir quality.
– Wells on Kodiak may potentially be used as injectors, with future appraisal wells also considered for production.
2. Clarification on Focus
– Clarification was provided regarding a podcast mix-up, affirming Pantheon’s dedication to oil development and indicating no connection to helium and carbon dioxide production.
3. Speculation on Asset Value
– Speculating on the potential sale value of the asset in the current market is challenging. However, it’s suggested that it could be higher than the current market capitalization, indicating confidence in the project’s worth.
4. Past Oil Deal
– Reference to a past oil deal in Alaska highlights the variability in valuation and the difficulty in applying a specific price to in-ground oil. It emphasizes the unpredictable nature of such transactions.
Pantheon Resources PLC’s investor presentation showcased a commitment to ongoing development and provided investors with valuable insights into the company’s operations and future prospects. With discussions on project updates, asset value, and clarification on focus, the presentation offered a comprehensive overview of Pantheon’s endeavors, you can watch the episode here and the following are key highlight areas
00:00 * Pantheon Resources PLC holds a post-AGM investor presentation, encouraging questions from attendees.*
00:28 * All AGM resolutions were approved, and an RNS confirming this was released along with additional information.*
01:09 * The presentation content is available on the company’s website.*
01:35 *️ The company aims to achieve recognition of 5 to 10 per barrel of recoverable oil.*
03:04 * Alkaid 2 well test data confirmed economically developable resources, leading to a strategic pivot towards development.*
03:44 * The focus is on minimal shareholder dilution while moving towards production and financial self-sufficiency.*
05:07 * The company distinguishes between two large fields, Aoon and Kodiak, each with different formations.*
06:30 * Netherland’s evaluation of Kodiak estimates nearly a billion barrels of marketable liquids; an updated report is awaited.*
07:24 *️ Alkaid well recompletion provided critical data for reforecasting development plans.*
08:18 *️ The company completed its acreage acquisition, strategically expanding to avoid competition.*
09:52 * Pantheon Resources plans a US listing, likely on NASDAQ, while retaining a UK listing for an interim period.*
11:55 *️ Alkaid 2 recompletion yielded 50-140 barrels per day of marketable liquids.*
12:36 * The top set horizons show over 100 times better permeability than the Alkaid zone of interest.*
14:20 * New acreage provides excellent porosity and permeability, indicating a large structural stratigraphic trap.*
17:04 * Top set play tested in Alkaid 2 showed light oil at the edge of the Opon top set play.*
19:59 *️ The Eastern extension of the Aoon field is expected to have higher quality reservoirs than previously assessed.*
23:11 * Pantheon Resources plans to unitize Kodiak into a single development area.*
23:53 *️ Focus on initial development in the main body of the top sets in Aoon, expecting higher initial flow rates.*
25:03 * Planned final investment decisions for Aoon by the end of 2025 and for Kodiak by late 2028.*
25:33 * Introduction of new board members to enhance oversight and investor confidence.*
27:20 * Linda, new chair of the finance audit and risk committee, focuses on US listing compliance and operational efficiency.*
28:16 * Tony Lin leads the transition for the US listing, aiming for completion by Q1 2025.*
29:12 * Update on remuneration plans aligning rewards with shareholder value and market practice.*
31:17 * Focus on succession planning for key roles as the company transitions through different stages.*
32:22 * Emphasis on maintaining high ethical standards and transparent conflict of interest management.*
34:13 * Commitment to building a strong operations team for efficient development and production.*
37:15 *️ Operational focus on reducing costs, particularly in fracking sand, aiming for a target of 20 cents per pound.*
40:21 * New type curves based on reservoir data project 4,000 barrels per day initial production (IP30) and 2 million barrels recoverable.*
41:54 * Revised financing requirements due to improved reservoir quality, expecting reduced cumulative cash outflow.*
43:58 * Anticipation of a borrowing base of around $350 million by the end of 2027 to support expansion.*
45:34 * Enhanced drilling efficiency expected to increase the number of wells drilled per rig per year.*
46:45 * Pantheon Resources anticipates ongoing drilling for the next 20 years, with a focus on efficiency and production optimization.*
47:24 *️ The company aims for a production capacity of 200-250,000 barrels per day by about 2033.*
48:08 * Positive net operating cash flow expected within 12 months of starting Aoon development.*
48:46 * Two main reports upcoming: updated Kodiak evaluation and detailed development plan by SLB.*
49:44 * Additional appraisal wells required for Kodiak FID; the state of Alaska unlikely to approve development based on current well data.*
50:55 * Funding updates expected in the first and second quarters, focusing on non-equity based funding.*
52:02 * Strategy to maintain conservative funding to ensure capital availability for foreseeable needs.*
53:39 *️ Drilling anticipated to commence in the first quarter of 2026, funding dependent.*
54:05 * Pantheon Resources currently lacks funds for drilling; awaiting completion of funding strategy.*
54:58 * Recovery estimates based on $70 per barrel, with a focus on economic viability down to $45 per barrel.*
56:20 *️ Different completion strategies planned for conventional and unconventional reservoirs across Kodiak.*
57:52 *⚖️ Economic optimization key in completion and production strategies.*
58:30 * Short-term company goals include key reports and flow testing by 88 Energy’s Hickory well.*
59:36 * Asset sale only considered if it yields a better outcome than current plans for maximizing shareholder value.*
01:01:38 * Requirements for booking reserves include proving economic rate producibility and securing funding.*
01:02:35 * Hickory well flow test by 88 Energy could positively impact Pantheon’s project if successful.*
01:03:01 * Rationale for US listing includes broader investor access and compliance with international standards.*
01:08:15 * Pantheon Resources seeks independent views and talks to various U.S. investors to inform their decision on a U.S. listing.*
01:09:26 * Some investors can only invest in companies listed on main boards, which influences the decision for U.S. listing.*
01:10:03 * The cost for the U.S. listing process is backloaded, with majority fees expected through commissions on funding raised during the listing.*
01:11:00 * The U.S. listing is part of a broader strategy to engage with various stakeholders in the U.S., including the government and local communities.*
01:11:55 * C5+ hydrocarbons are those with five or more carbon atoms, typically liquid without temperature or pressure control.*
01:13:17 *️ Major oil companies’ interest in Pantheon is not solely indicated by acquisition offers; the company’s share liquidity makes unnoticed acquisitions challenging.*
01:16:16 * The Aoon East top set may qualify as a conventional reservoir but will likely see similar development techniques as other areas.*
01:18:04 * Peak production for Pantheon’s project could technically reach up to half a million barrels per day, subject to economic optimization.*
01:20:08 * A major company with fewer financial constraints might achieve higher peak production rates than Pantheon’s current plan.*
01:23:12 * Recent upgrades to production projections are based on improved understanding of reservoir permeability and efficiency from recent test results.*
01:27:01 * The improvements in Aoon’s top sets suggest potential for more positive changes in project assessments in the future.*
01:29:08 * The company’s direction indicates improving prospects, and better reservoir quality could lead to a lower water cut.*
01:31:18 * The company plans ongoing engagement with investors, with the investor mix expected to change as they near production and U.S. listing.*
01:33:32 * UK listing duration post-U.S. listing will depend on a cost-benefit analysis, particularly considering UK investors’ tax-efficient investments.*
01:34:55 * Comprehensive update on the Kodiak field expected by the end of the first quarter.*
01:35:36 * Pantheon’s financial controller role is being expanded to focus more on finance director responsibilities.*
01:37:00 *️ Poor completion efficiency in Alkaid 2 was primarily due to Frack design and implementation, not just well placement.*
01:38:38 * Market currently values Pantheon Resources at approximately 10 cents per barrel, but management believes it’s worth more.*
01:40:28 * Drilling plans for Aoon East top set are being prepared to commence immediately after financing is secured.*
01:42:18 * No current plans to provide updated estimates on the slope fan system within Pantheon’s acreage.*
01:45:18 * Kodiak field is a key focus, with substantial work done to update resource estimates.*
01:47:37 * Aoon field is valuable in its own right, acting as a stepping stone to accelerate Kodiak development.*
01:49:00 * Recent upgrades in production projections are based on improved reservoir understanding and production practices.*
01:51:02 * Current cash availability is around $8 million, with an additional $4 million pending from equity placement.*
01:52:55 * Some wells have not been abandoned and may be used as injectors; future appraisal wells on Kodiak may potentially be completed as producers.*
01:55:41 * Speculating on the potential sale value of the asset in the current market is difficult, but it is likely higher than the current market capitalization.*
01:57:32 * Reference to a past oil deal in Alaska, highlighting the variability in valuation and the difficulty in applying a specific price to in-ground oil.*