Pantheon Resources – successful results from Pantheon’s Dubhe-1 horizontal lateral, landing the well in the target reservoir and exceeding its expectations for the length, shares 28.90p, TP 57.4p

Mark Watson-Mitchell
Sep 8
3 min read

08.09.2025

This morning Pantheon Resources (LON:PANR), the £373m-capitalised oil and gas company developing the Kodiak and Ahpun oil fields near pipeline and transportation infrastructure on Alaska's North Slope, announced the successful drilling of the Dubhe-1 appraisal well lateral.

The lateral was successfully landed in the topset horizon (SMD-B), the primary target confirmed in the Dubhe-1 pilot hole.

The company reported that the Dubhe-1 horizontal lateral was successfully drilled and logged to a total measured depth of 15,800 ft, of which c.5,200 ft was entirely within the SMD-B target reservoir.

That result exceeded pre-drill targeted length of 3000-4000 ft.

Analysis of the quality of the logged pay throughout the horizontal lateral in the primary target SMD-B confirmed the reservoir remained consistent with the pilot hole results.

Agreements are in place with all key suppliers for the hydraulic stimulation of the lateral ahead of flow tests to gather detailed production data for development planning and refining the production well type curve.

The updated best estimate resources for the Ahpun area, based on Dubhe-1 appraisal well results to date is 589m barrels of marketable liquids - representing an increase of 228m barrels (c.63%) from previously certified resource estimates.

Management Comment

Chief Development Officer, Erich Krumanocker, stated that:

"We are delighted to announce the Dubhe-1 horizontal lateral as a success, landing the well in the target reservoir and exceeding our expectations for the length.

We are looking forward to progressing with the completion and subsequent flow testing of this well."

The Company

Pantheon Resources is focused on developing its 100% owned Ahpun and Kodiak fields located on State of Alaska land on the North Slope, onshore USA.

Independently certified best estimate contingent recoverable resources attributable to these projects currently total c. 1.6bn barrels of ANS crude and 6.6 Tcf of associated natural gas.

The Company owns 100% working interest in c. 259,000 acres.

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 bringing the Ahpun field forward to FID and producing into the TAPS main oil line (ANS crude) by the end of 2028.

The Gas Sales Precedent Agreement signed with AGDC provides the potential for Pantheon's natural gas to be produced into the proposed 807-mile pipeline from the North Slope to Southcentral Alaska during 2029.

Once the Company achieves financial self-sufficiency, it will apply the resultant cashflows to support the FID on the Kodiak field planned, subject to regulatory approvals, targeted by the end of 2028 or early 2029.

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 shorter development timeframes, materially lower infrastructure costs and the ability to support the development with a significantly lower pre-cashflow funding requirement than is typical in Alaska.

Furthermore, the low CO2 content of the associated gas allows export into the planned natural gas pipeline from the North Slope to Southcentral Alaska without significant pre-treatment.

Broker’s Views

Analyst Brendan Long, at Oak Securities, rates the shares as a Buy, with a Target Price of 57.4p.

He states that:

“The announcement is unambiguously positive and builds further on the company’s positive momentum.

We expect further near-term share price appreciation.

Pantheon Resources is currently trading at $0.21 per bbl of quantified 2C resources (liquids only); whereas, we believe that a $5-10 per barrel valuation is achievable by advancing the company’s projects closer to commercial production (premised on regional M&A metrics).”

At Canaccord Genuity Capital Markets, analysts Charlie Sharp and Phil Hallam rate the shares as a Speculative Buy with a 70p Target Price.

“We see the resource upgrade at Ahpun, across the various reservoirs, as a helpful addon for future development planning, but we expect the newly attributed resources in the SMD-C and Slope Fan reservoirs will need more technical evaluation.

We hold off assessing a market value until after the SMD-B well test at Dubhe-1.

The drilling and logging operation at Dubhe-1 has gone very well, with a thicker-than expected primary reservoir in the pilot hole and a very encouraging result from a longer than anticipated lateral penetration.

The company is now at the business end of the well with stimulation and testing to come.

That should provide important information regarding hydrocarbon mix and flow rates, set a basis for a well type-curve, and hopefully deliver key data for development planning including support for a gas pipeline.”

My View

The group’s shares at 28.90p have an