Pantheon Resources plc has upgraded the estimate of recoverable marketable liquids at its Kodiak Field asset in Alaska’s North Slope by 25 percent.
An updated report from Netherland, Sewell & Associates (NSAI) on the Lower Basin Floor Fan reservoir of the company’s Kodiak project gave best estimates of contingent recoverable resources of 1.2 billion barrels of marketable liquids, consisting of oil, condensate and natural gas liquids (NGLs), and 5.4 trillion cubic feet (Tcf) of gas.
The previous report, prepared by NSAI in August 2023, previously gave estimates of 962.5 million barrels (MMbbl) of oil and NGLs.
The updated numbers include approximately 43,000 of the around 66,000 acres of the expanded acreage footprint after Pantheon’s successful lease bids in December 2023, and a higher average recovery rate due to the better reservoir properties in the shallower, updip portion of the field secured by the new leases, the company said in an announcement Tuesday on the London Stock Exchange.
The potential improvement in reservoir quality in the newly acquired acreage underpins the approximately 40 percent increase in the high estimate of recoverable resources to 2,840 MMbbl of marketable liquids and 11.75 Tcf of natural gas, Pantheon noted.
Pantheon added that the best case estimate of 5.4 Tcf of recoverable gas is important “as additional support for a proposed agreement with Alaska Gasline Development Corp (AGDC) to bring gas to south central Alaska markets”.
“The underpinning of our strategy with the validation provided by NSAI is an important step on the path to our 2028 goal of demonstrating values in the range $5-$10 per barrel of recoverable resource,” Pantheon Executive Chairman David Hobbs said.
“Recent progress towards securing funding, include leveraging our natural gas resources – potentially turning them from a liability to an asset – allows us to move forward with increased confidence. I would like to take the opportunity to congratulate Jay and his team on putting the building blocks in place to deliver our ultimate success,” Hobbs added.
“This NSAI report reveals the true scale of the Kodiak Field now that we have secured leases over its full extent,” Pantheon Technical Director Bob Rosenthal said. “The potential upside is vast – NSAI recognizes a high estimate in excess of 2.8 billion barrels of recoverable marketable liquids and nearly 12 trillion cubic feet of recoverable natural gas. As we drill wells and obtain additional data, our goal is to progressively move the ‘best case estimate’ towards NSAI’s ‘high case estimate’ over time”.
“Discovering a billion-barrel oil accumulation is what companies dream about and the Independent Expert Report by NSAI validates our company’s significant achievements over the past decade. We can now turn our attention to development, along with our growing Ahpun resource, to turn these volumes to cashflow and value for shareholders,” Rosenthal remarked.
The Kodiak oil and gas field currently represents Pantheon’s largest project development candidate, currently defined by three well penetrations into the Basin Floor Fan structure, which extends more than 10 miles from the deepest part of the fan to the 2021 updip Theta West-1 appraisal well, according to the announcement.
Pantheon has 100 percent working interest in the Kodiak and Ahpun projects, covered by 193,000 acres of leases with an additional 66,000 acres to be awarded following successful bids in the December 2023 lease sales. The leases are all in close proximity to pipeline and transportation infrastructure on Alaska’s North Slope, the company said.
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