Pantheon Resources Plc has been awarded 66,240 acres in Alaska’s North Slope, including substantially all remaining conventional reservoir potential in the Kodiak Field and potential in the eastern Ahpun Field, the company said on Dec. 14.
Pantheon’s winning bids averaged $31.83 per acre, including fees. When the leases are officially awarded by Alaska in about 4 months to 6 months, they will come with a 10-year initial term, an annual rental of $10 per acre and royalty rates of 16.67% (20 leases, 28,800 acres) and 12.5% (26 leases, 37,440 acres).
The company has paid an initial deposit to the state equivalent to 20% of the bid costs, with the remainder payable on official award along with the first-year rentals.
In the Kodiak, the ultimate resource classification of the 43,200 new acres will be determined following reviews with Netherland, Sewell & Associates Inc. and SLB.
The Ahpun, the company said, is believed to be higher quality, shallower reservoirs covered by 23,040 acres and accessible from the west side of the Sag River using current technologies.
Pantheon Technical Director Bob Rosenthal said the leasing was important to secure “what we expect to be the highest quality areas of the Kodiak and Ahpun fields at the shallowest depths, and protecting the development schedules for Ahpun and Kodiak by covering the full fields to be included in our requests for development consents from the State of Alaska.
“Our focus remains on the development of Ahpun with FID [final investment decision] planned by the end of 2025 and appraisal of the full potential of Kodiak to support its FID in 2028.”
Pantheon said it owns a 100% working interest in the Kodiak and Ahpun projects, collectively spanning about 193,000 contiguous acres in close proximity to pipeline and transportation infrastructure on Alaska’s North Slope.