Pantheon Resources - well, now we know, shares collapsed on this morning's news

Mark Watson-Mitchell - 02.12.2025

It was only late yesterday afternoon that I suggested news from Pantheon Resources (LON:PANR) was due.

But not the news that impacted the market this morning.

The company provided an operational update on the Dubhe-1 well, noting that clean-up operations are ongoing with intermittent oil and increasing gas production since early November, with approximately 40% of injected water now produced.

The final cost for drilling and completing Dubhe-1 was approximately $33m, including a pilot hole and contingency measures, exceeding the initial estimate of around $10m for drilling and $15m for completion, with the new pad costing an additional $2.5m.

The company aims to determine a representative oil flow rate as clean-up continues, acknowledging that the multi-stage completion may result in a different clean-up profile compared to previous wells.

Analyst Daniel Slater, at Zeus Capital, has this morning stated that:

"Pantheon holds 100% in a series of licences onshore Alaska, where the company has made a number of large discoveries.

Across its Ahpun (SMD-B, SMD-C, Slope Fan), Ahpun Alkaid, and Kodiak assets Pantheon holds recoverable 2C resources of 1.8bn bbl of liquids and over 6tcf of gas and is now progressing towards early-stage development.

The company plans to take FID on initial development at Ahpun in 2027, targeting first production and liquids export via TAPS in 2028, with cash flows then recycled to continue development activities.

The company’s assets hold significant gas resources, and recent third-party moves to build a gas export pipeline south to Anchorage and a new potential Alaska LNG export project, supported by Pantheon gas production volumes, could help expedite further Pantheon development phases and reduce development and operating costs.

The company has cash from a US$35m convertible bond issue in February 2025, and the US$16.25m July and US$30m September 2025 equity raises, funding ongoing activities.

Going forward, we look for further news from the Dubhe-1 appraisal well, and subsequent progression of development planning and funding going into Ahpun development FID.

We have a positive outlook for the shares, and value them in-line with our 73p total risked NAV."

My View

As I stated yesterday, this stock remains a real gambling counter until better and more frequent news issued about its various assets and areas of operation.

Upon the news, the shares fell to 18p at their lowest this morning, but are currently just 20.40p.

You have to be risk-tolerant playing in these markets; however, it is just a 'penny punt' until more is known.

(Profile 22.05.23 @ 17.07p set a Target Price of 22.50p*)

(Profile 11.09.25 @ 26.50p set a Target Price of 34p)