15^thFebruary 2022

Pantheon Resources plc

Theta West #1 Operational Update  

Pantheon Resources plc ("Pantheon" or "the Company"), the AIM-quoted oil and gas company with a 100% working interest in all of its oil projects spanning c. 153,000 acres adjacent and near to transportation and pipeline infrastructure on the Alaska North Slope, is pleased to provide the following update:

Theta West #1 - Total depth reached. Planning to flow test.

Pantheon confirms that Theta West #1 has reached total depth ("TD") at 8,450 feet having drilled through both the Upper Basin Floor Fan ("UBFF") and Lower Basin Floor Fan ("LBFF") target horizons, which are Brookian age, and having encountered approximately 1,160 gross feet of hydrocarbon bearing reservoir across both horizons combined. Data received so far indicates the reservoir quality is superior to Talitha #A, with high quality light oil encountered across the entire section. The Company is now preparing to set casing prior to flow testing within both horizons over the coming weeks.

The UBFF was encountered between 6,800 and 7,000 feet, and the LBFF was encountered between 7,450 feet and 8,410 feet depth. The top of the UBFF is located approximately 150 feet higher than pre-drill estimates. Well bore conditions in the shallower sections above the primary objective, combined with the extremely cold weather, have prevented the Company from conducting wireline operations in the open hole. However, the Company undertook Logging While Drilling ("LWD") operations which included resistivity, gamma ray, neutron density, formation density along with gas chromatography readings during drilling which has provided excellent quality data, indicating the presence of hydrocarbons in the targeted horizons some 1,500 feet structurally higher (updip) from the Talitha #A well, 10.5 miles to the southeast. Samples analysed to date by AHS/Baker Hughes, which have been contracted to undertake Volatiles Analyses ("VAS"), has also confirmed the presence of light oil within the UBFF and the top portion of the LBFF, consistent with the LWD data. AHS/Baker Hughes is yet to complete analysis of the lower portion of the LBFF.

Operations at the well site have been impacted by the extremely cold temperatures (-55 degree Celsius wind chill), which have caused some disruption through a number of equipment failures and a reduced ability for personnel to work outside in such extreme conditions. Due to the well bore conditions and weather, the Company was unable to core or to collect open hole wire line logs, however, the data gathered to date has been of sufficient quality to allow the Company to analyse the well bore.

The Company has decided to preserve the well bore and run casing, prior to undertaking cased hole logging and subsequently flow testing.  As always, the Company cautions that it is too early to draw final conclusions as to the ultimate potential of the well which can only be assessed after the completion of flow testing operations.   

Operational update - Talitha #A

Testing of the Slope Fan System ("SFS") is now underway and results will be reported when completed. As with the Basin Floor Fan at Talitha #A, the SFS is also a secondary target in a suboptimal location in this well, and thus the objectives for testing are to (a) prove the movability of hydrocarbons, and (b) to confirm high quality light oil. No resource estimates have been provided to date for the SFS.

Bob Rosenthal, Technical Director, said: "This an encouraging result. Our initial assessment of 1,160 feet of light hydrocarbons 1,500 ft structurally updip from Talitha, with better porosities, is in line with our pre-drill geologic model. It is very much a case of so far, so good."

Jay Cheatham, CEO, said: "We are cautiously optimistic that testing will prove the commercial viability of the BFF at this location, with all indications so far supporting our pre-drill assumptions. We look forward to updating shareholders in due course." 

Further information:

Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas company focused on several large projects located on the North Slope of Alaska ("ANS"), onshore USA where it has a 100% working interest in 153,000 highly prospective acres with potential for multi billion barrels of oil recoverable. A major differentiator to other ANS projects is its close proximity to transport and pipeline infrastructure which offers a significant competitive advantage to Pantheon, allowing for materially lower capital costs and much quicker development times. The Group's stated objective is to create material value for its stakeholders through oil exploration, appraisal and development activities in high impact, highly prospective conventional assets, in the USA; a highly established region for energy production with infrastructure, skilled personnel and low sovereign risk. All operations are onshore USA, with drilling costs materially below that of offshore wells.

For further information on Pantheon Resources plc, see the website at: www.pantheonresources.com

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").

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement. 

Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to discovered and undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.

In accordance with the AIM Rules - Note for Mining and Oil & Gas Companies - June 2009, the information contained in this announcement has been reviewed and signed off by Jay Cheatham, a qualified Chemical & Petroleum Engineer, who has over 40 years' relevant experience within the sector. 

Glossary

Volatiles Analysis - The Volatiles Analysis Service (VAS) from Baker Hughes is a unique lab-based measurement and advisory service that evaluates fluid, petrophysical, and geomechanical properties of the formation using drilled cuttings or core plugs. Information gathered helps customers optimize drilling and completion decisions for enhanced reservoir production.

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