Thread by @diegodoesdo

$PANR  At current pricing, the 'Alkaid' production stream would generate approximately $40,000 per day in gross revenue once facilities are installed to separate and capture the NGLs and condensate. #PANR

In order to demonstrate potential project economics, Pantheon has developed a conceptual development model for the Alkaid anomaly (not including the shallower Shelf Margin Deltaic ("SMD") formation which is also oil bearing) based upon .. $PANR #PANR

the actual flow rates (137.5 barrels per 1000 ft of unblocked wellbore - and for conservatism ignoring potential improvements to flow rate that may arise as the well cleans up beyond its present 40%) and actual hydrocarbon mix (oil, NGLs & condensate) detailed in its .. $PANR

announcement of 30 December, 2022. At current pricing, this production stream would generate approximately $40,000 per day in gross revenue once facilities are installed to separate and capture the NGLs and condensate. $PANR #PANR

The modelling which was undertaken for illustrative purposes only, supports that the Alkaid project can be commercial at current production rates and hydrocarbon composition. A sensitivity table is provided below showing NPV's and IRR's at various pricing scenarios. $PANR #PANR

A detailed analysis of the valuation of the components of the liquid hydrocarbon stream at Alkaid#2 has been undertaken and it is estimated that the current production mix of oil/condensate and NGL's would achieve +80%-90%of the Alaska North Slope Crude price ("ANS crude") $PANR

ANS crude usually trades at a premium to WTI. Some of the more valuable NGL's known to be present but which were not measurable at this point have been excluded from this calculation for conservatism, but would be extracted in a development scenario, providing additional upside.

Additionally, should the ratio of oil continue to improve as the Alkaid#2 well cleans up beyond the present 40%, then this would provide additional upside to the modelled numbers above. $PANR #PANR