Pantheon Resources price target hiked after Alaska resource boost
Published: 10:22 16 Jul 2021 BST
Pantheon Resources PLC (LON:PANR) has received a hefty price target upgrade from broker Canaccord following a new resources estimate for one of its prospects in Alaska.
The broker upped its target to 170p per share from 115p, adding that the news is a further step in confirming the overall potential of Pantheon's Alaskan projects potential.
This, in Canaccord’s view, should lead to “expanded market and industry interest in the company's large scale and attractively located resources”.
Pantheon said technical analysis had allowed it to update the resource estimate for one of three zones (B) within the Shelf Margin Deltaic (SMD) reservoir found in the Talitha #A well.
This has resulted in a 50% upgrade in resources to 404 mmbbls (million barrels) for this single SMD zone.
The revised estimate integrates the Talitha well data and 3D seismic, enabling refinement of Pantheon's assessment of reservoir thickness, rock properties, and areal extent said Canaccord.
Furthermore, the well data has given the company sufficient confidence to upgrade its view of resources to 'contingent' from 'prospective'.
Pantheon's onshore Alaska licences also benefit from close proximity to the Dalton Highway and Trans Alaska Pipeline (TAP), noted the broker, which combine to allow easy access to the company's licences and provide the all-important means of nearby crude oil transportation for future developments.
The shares rose 18.5% to 61.6p or around a third of Canaccord’s new price target.
‘Speculative buy’ is Canaccord’s investment rating.
