Pantheon to buy interest in Alkaid-Phecda project on ANS

Pantheon Resources PLC agreed to acquire Halliburton Co.’s 25% working interest in the six leases jointly held on the Alaskan North Slope. In exchange, Pantheon will accept full responsibility for all future lease obligations.

With the deal, Pantheon will hold 100% working interest in the 22,804-acre Alkaid-Phecda project and 92% working interest in two additional adjacent leases covering 11,367 gross acres.

After closing the deal, subject to a customary approval process by the Alaska Department of Natural Resources, Pantheon will hold a 90-100% working interest in 177,000 gross acres containing potential for 1.2 billion bbl of recoverable oil nearby the Trans-Alaska Pipeline System and the Dalton Highway. In addition, Pantheon holds 10% working interest in the Winx acreage, which covers another 23,000 gross acres.

The Alkaid-Phecda project “contains an estimated 900 million bbl of oil in place, and a P50 technically recoverable resource estimated at 90-135 million bbl of oil based upon primary recovery assumptions of 10-15%,” said Jay Cheatham, Pantheon chief executive officer.

Cheatham said the 100% ownership is important to its farmout discussions and the location of the project “offers significant cost and timing advantages over other North Slope projects, with the possibility of year-round activity and targeted first production as early as 2020.”

Subject to a successful farmout, start of production from its Alkaid discovery is targeted as early as 2020, the company reported to investors.

March tests showed 450 ft gross pay, perforated 6 ft interval, flow tested 100 b/d of oil. No oil-water contact was found. Alkaid-Phecda were determined to be part of same accumulation.