Timing could be perfect for Pantheon Resources Plc to unearth billion barrel discoveries in Alaska

Is there a better time to confirm an onshore multi-billion barrel oil discovery?

As Americans baulk at soaring gasoline prices above US$4 a gallon (which, by the way, is ludicrously cheap compared to the UK equivalent which would be above US$7.50) a London-listed, UK-based exploration company today said its latest well results indicate that one of multiple new plays is “likely” bigger/better than the 1.8bn barrels estimated pre-drill.

Further testing is presently suspended due to extreme weather and the Arctic operating window will soon draw to a close, nevertheless, it’s been a strong season for Pantheon Resources PLC (AIM:PANR, OTC:PTHRF).

“We are now on the path to unlocking an enormous basin play,” technical director Bob Rosenthal said in a stock market statement, noting that the latest well, Theta West, measured an expectation beating 950-foot oil column and that it was designed as a 10.5 mile ‘step-out’ test from Pantheon’s prior discovery wells.

Highlighting the pre-drill expectations for Theta West the geologist said it was estimated in excess of a billion barrels of recoverable crude and, now, they expect the number to increase further.

“Pantheon has an opportunity to develop a number of large, discreet oil accumulations in an established oil province adjoining export infrastructure, which we believe is unique. What a great season this has been.”

Rosenthal’s comments are echoed by his chief executive, Jay Cheatham, who said: “We have collected enough data to confirm our expectations that we have discovered, and now appraised, an extensive resource which we believe meets or exceeds our pre-drill estimates."

“The test result confirms a vast oil resource and also confirms our geologic model. Its proximity to infrastructure gives Pantheon a strategic advantage over other greenfield projects."

Now, exploration companies standing over early-stage discoveries are rarely known to underplay or under-sell the potential of their burgeoning asset portfolios – so the usual caution and health warnings apply when pricing-in what the potentially bright and lucrative future may look like.

The Pantheon team themselves say that proving commerciality will require long-term production testing, using horizontal wells rather than the vertical exploration wells drilled to date.

Nevertheless, stockbroker WH Ireland was quick to point to both the large scope and potential strategic significance of Pantheon’s Alaskan projects given present geo and petropolitics.

“We believe that the assets of Pantheon Resources represent a potential means of decreasing reliance on Russian oil in a manner that conforms to the highest standards of ESG,” WH Ireland analyst Brandan Long said.

“We note that as the world awakens to the reality that crude oil is the lifeblood of the modern economy there is a scarcity of high-quality, large scale oil development projects.

“As such, we believe assets such as the Lower Basin Floor Fan, amongst other large-scale assets held by Pantheon Resources, have potential to be of vital strategic importance.”

Focussing on the latest well result, Long added: “We believe the result vindicates our long-term belief in the potential of the largest elephant in Pantheon Resources’ stable, the Lower Basin Floor Fan of the Theta West Structure.

“The result is unambiguously positive in our opinion – it substantially de-risks the potential of the resource.”