28^th March 2024

Pantheon Resources plc

Progress on Funding Arrangements and Development & Appraisal Planning

Investor Presentation via Investor Meet Company

Pantheon Resources plc (AIM: PANR) ("Pantheon" or "the Company"), the oil and gas company with a 100% working interest in the Kodiak and Ahpun projects, covered by 193,000 acres of leases with an additional c. 66,000 acres to be awarded following successful bids in the December 2023 lease sales, all in close proximity to pipeline and transportation infrastructure on Alaska's North Slope, is pleased to share the following update on its development planning and funding initiatives.

Ahpun Development Planning

·    Initial dynamic modelling for 10,000 ft lateral well in the Ahpun topset horizons ("Topsets") supports Pantheon's previously released analysis of > 2 million barrels ("mmbbl") per well Estimated Ultimate Recovery ("EUR") and first year average production rate of 2,000 bpd of marketable liquids.

·    SLB is concluding the development plan for the deeper Ahpun Alkaid Zone and will now turn to the shallower Ahpun Topsets development plan.

·    Pantheon's technical team has identified well pad and bottom hole locations sufficient to recover Company estimates of 481 mmbbls from the Ahpun Topsets and Alkaid Zone (best estimate contingent recoverable resources).

·    In order to mitigate delays to financing discussions that would have resulted from Netherland, Sewell & Associates, Inc.'s ("NSAI") Ahpun report only becoming available around the end of Q2 2024, Pantheon commissioned Independent Expert Reports ("IER") for (the shallower) Ahpun Topsets and (the deeper) Alkaid Zone from Cawley Gillespie & Associates ("CGA") and Lee Keeling & Associates (LKA) respectively. The full reports, expected shortly, are integral to financing discussions, and will be announced to the market and posted to Pantheon's website when completed.

o  Given NSAI could not commence Ahpun work until after the completion of its work on Kodiak, CGA was appointed as it could commence earlier, thereby reducing the timeline to delivery of an IER on the Ahpun Topsets by some three months. CGA has conducted reserves auditing work on existing North Slope fields and has been able to work in parallel with NSAI's evaluation of Kodiak.

o  LKA has previously evaluated the Alkaid Zone in the Ahpun Field and, given their existing knowledge, was able to update this work with subsequent data from Alkaid-2 in a shorter timeframe.

o  NSAI will now prepare its IER on the entirety of the Ahpun Field, including any additional resources confirmed by successful appraisal of the eastern extension, prior to Final Investment Decision ("FID").

·    Pantheon is completing management estimates of prospective resources in the eastern extension to Ahpun Topsets covered by the new leases successfully bid for in December 2023, and accessible from western side of Sag River. Results will be released as soon as available.

Kodiak and Eastern Extension of Ahpun: Appraisal Planning

·    Expect to receive the initial NSAI Kodiak recoverable resource update to incorporate the new acreage at or near end of Q1 2024 / early Q2 2024.

·    Full NSAI report will be announced to the market and posted to Pantheon's website when received.

·    Pantheon is undertaking preparations to support winter campaigns for up to three appraisal wells in western portion of Kodiak field, subject to funding.

·    The Company is currently preparing drilling plans for a Megrez-1 well into eastern Ahpun Topsets from alongside Dalton Highway using either an ice pad for winter drilling or rig mats for summer drilling, again subject to funding.

Funding Arrangements

·      Offtaker Finance Initiatives:

o Advanced discussion on a proposed agreement with Alaska Gasline Development Corp ("AGDC"), subject to regulatory approvals, Alaska LNG FID and assignable to ultimate customers, to supply up to 500 million cubic feet per day ("mmcfd") of natural gas at exit of Ahpun gas plant at a base price not to exceed $1/ million British thermal unit ("mmbtu"), with a final price subject to negotiation, for up to 40 years. Targeting delivery of initial volumes in 2029, ramping up to full capacity by 2032.

o Pantheon and AGDC are working cooperatively to identify mutually beneficial opportunities to further reduce the natural gas price.  

o Pantheon retains the rights to any helium and other gaseous products produced or remaining as a byproduct of future LNG produced with Pantheon natural gas via Alaska LNG. 

o Well tests of associated gas from the Ahpun and Kodiak fields indicate approximately 0.5% CO2 content, well below the 3% maximum limit for in-state utility gas. 

·    Vendor Finance Initiatives:

o  Pantheon is working with two large service companies on mutually beneficial arrangements for oilfield services. This would reduce upfront cash requirements and allow scheduling of equipment availability, including potentially new build facilities customised to field conditions. Services would be supplied under long term contracts benchmarked to industry norms and with incentives for exceeding target service costs.

o  Pantheon expects to be able to provide details of other discussions with vendors in the coming months.

·    There can be no guarantees that either vendor financing or offtaker financing arrangements can be concluded on terms acceptable to each party.

The Company will host an Investor Meet Company webinar to discuss the status of development and appraisal planning on 10 April 2024 at 17:00 BST. Participants can register via the following link:

https://www.investormeetcompany.com/pantheon-resources-plc/register-investor.

Anyone following Pantheon Resources PLC with Investor Meet Company will automatically receive a notification.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 09 Apr 2024, 09:00 BST, or at any time during the live presentation.

David Hobbs, Executive Chairman of Pantheon Resources, commented:

"We have made considerable progress during the past several months towards accessing funding on the least dilutive basis possible. The competitive advantage of our location and gas composition, which could potentially provide gas for in-State use through Alaska LNG, should allow Pantheon to capture the benefit of reduced numbers (and CapEx) of gas reinjection wells along with a path to low-cost commercialisation of the helium potential now identified in the Kodiak field.

"The updated Independent Expert Report from NSAI on our 100% owned Kodiak project and the two Independent Expert Reports from CGA and LKA have shortened the timeframe for potential partners to fast-track their technical and commercial due diligence to meet our target of concluding non-equity funding arrangements by the end of Q2 2024. These will be released, along with SLB's dynamic modelling results, when they are received in the next few weeks. We will delay completion of NSAI's assessment of Ahpun from its original timetable to incorporate the results of planned further drilling in the Topsets (previously referred to as SMD) and to support the FID for the overall Ahpun Development."

Frank Richards, President of AGDC, commented:

"Alaska is facing an energy crisis, and AGDC is exploring every option to deliver a new, affordable, reliable, and long-term energy supply. This proposed agreement provides for more than enough gas to meet Alaska's in-state energy requirements, this gas features very low carbon dioxide content eliminating the need for additional treatment costs, and Pantheon's fields are conveniently situated directly along the Alaska LNG pipeline route. We look forward to working with Pantheon to finalize these agreements as we advance Alaska LNG."

Further information, please contact:

The information contained within this Announcement is deemed by Pantheon Resources PLC to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas company focused on developing the Ahpun and Kodiak fields located on state land on the Alaska North Slope ("ANS"), onshore USA, where it has a 100% working interest in c. 193,000 acres. In December 2023, Pantheon was the successful bidder for an additional 66,240 acres with very significant resource potential, contiguous to the Ahpun and Kodiak projects. Following the issue of the new leases, which are expected to be formally awarded in summer 2024 upon payment of the balance of the application monies, the Company will have a 100% working interest in c. 259,000 acres. Certified contingent resources attributable to these projects exceeds 1 billion barrels of marketable liquids, located adjacent to Alaska's Trans Alaska Pipeline System ("TAPS").

Pantheon's stated objective is to demonstrate sustainable market recognition of a value of $5-$10/bbl of recoverable resources by end 2028. This is based on targeting Final Investment Decision ("FID") on the Ahpun field by the end of 2025, subject to regulatory approvals, building production to at least 20,000 barrels per day of marketable liquids into the TAPS main oil line, and applying the resultant cashflows to support the FID on the Kodiak field by the end of 2028.

A major differentiator to other ANS projects is the close proximity to existing roads and pipelines which offers a significant competitive advantage to Pantheon, allowing for materially lower infrastructure costs and the ability to support the development with a significantly lower pre-cashflow funding requirement than is typical in Alaska.

The Company's project portfolio has been endorsed by world renowned experts. Netherland, Sewell & Associates ("NSAI") estimate a 2C contingent recoverable resource in the Kodiak project that total 962.5 million barrels of marketable liquids and 4,465 billion cubic feet of natural gas. NSAI is currently working on updated estimates for the Kodiak Field to incorporate the additional acreage, and CGA and LKA are working on estimates for the Ahpun Field.