26th Mar 2020 12:07
(Alliance News) - Pantheon Resources PLC on Monday reported "significantly" increased resources than expected at a project in Alaska.
Pantheon has been reviewing its entire Alaskan portfolio after receiving new 3D seismic data during the second half of 2019.
The Talitha project has now been split into three different horizons which are all now separate geological formations with different reservoir characteristics. All have been penetrated by an existing well.
The shallowest horizon, Shelf Margin Deltaic from the Brookian sequence, is estimated to contain 1.8 billion barrels of oil in place and a technically recoverable resource of 483 million barrels of oil.
Previously, the entire Talitha project was forecast to hold 2.6 billion barrels of oil in place and a recoverable resource of 463 million to 508 million barrels of oil.
The two other Talitha zones, Slope Fan System and Kuparuk, also hold significant potential, Pantheon said, but analysis is not yet finished.
Chief Executive Jay Cheatham said: "The oil and gas industry and global equity markets are facing serious challenges at the present time. Yet our projects are emerging in quality, size and scale exceeding what we ever imagined. Our projects are onshore, close to infrastructure, conventional, in an area of low royalties with minimal sovereign risk. They have size and scale that we believe is material for almost any company.
"This all points to a breakeven oil price that our analysis suggests is below most other oil projects around the world. There is a structural adjustment taking place in the oil industry as companies are moving back to the lower cost, high return conventional business and we believe we are well placed in this regard."
"These assets have the potential to produce for a generation or more, so it's the long term, not the short term oil price that is most important for us. The potential of Talitha combined with our Greater Alkaid oil accumulation and the Theta West and Leonis projects give us a world-class portfolio," he continued.
Shares were 6.8% lower on Thursday in London at 12.62 pence each.
By George Collard; [email protected]
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