Thread by @diegodoesdo

#PANR WHIreland join Canaccord Genuity, Schlumberger (SLB) and more in backing mgmt. Appraisal of the current situation with Alkaid. Target Price remains unchanged @ 199p (Adjusted for available cash) #PANR

Westside to the Eastside: The exploration success on the Westside of North Slope, mainly in Torok and Nanushuk formations, was due to fortuitous discoveries. These discoveries were linked to seismic anomalies, which led to more prospectivity in the area.
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The Eastside has key advantages, including proximity to Dalton Highway and the Trans Alaska Pipeline System. The Eastside also has a known world-class petroleum system, with Prudhoe Bay being the largest oil discovery in North America.
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The progradational play on the Eastside is younger but conceptually similar to the Westside. Pantheon's $80M investment in seismic allowed for the discovery of stratigraphic traps on the Eastside that were previously impossible to see. $PANR #PANR

ConocoPhillips has ordered the construction of the Doyon 26 rig, nicknamed "The Beast", to drill up its Alpine field. It can drill 6.7 miles horizontally, a record for a land-based rig. Image source in next tweet.

See more on "The Beast" here.. $PANR #PANR engineering.com/story/conocoph…

Major US players now own and operate their own sand mines in the Lower 48, and a dedicated sand mine in Alaska may be developed with Pantheon's assets. Sand is a crucial component in hydraulic fracking and Pantheon's land is well positioned for sand delivery. $PANR #PANR

Shipping sand from the Lower 48 to Alaska will increase well costs, but well costs can be expected to decline with scale. The $19.5M well cost estimate guided by #Panr is for a junior oil company drilling single wells and is not representative of major oil companies. $PANR

Well costs and productivity can be expected to increase with experience as the major oil companies scale up their operations. $PANR #PANR

On Gas: Gas Injection at Prudhoe Bay is operated by ConocoPhillips and is the largest water flood project in the world. Gas reinjection provides pressure support, proving gas disposal is not a problem in the region. $PANR #PANR

Natural gas is essential for producing oil from fracked wells. The pressure of gas expansion drives oil up the well, making it a crucial component for every shale oil well in the US.
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Increasing frack surface contact is key to improving well productivity. Pantheon Resources’ assets have extraordinary oil columns surrounded by oil & gas-bearing rocks, offering tremendous scope for scaling up frack intensity. $PANR #PANR

Other reservoirs may be in proximity to water-bearing rocks, creating risks for disaster if fracked. Pantheon’s future wells will be placed where increasing frack intensity will have nil reservoir risks.
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Fracks of the scale required by Pantheon’s assets will need to be specifically designed and may take on "beast-like" proportions. The goal is to increase productivity by increasing frack surface contact. $PANR #PANR

The negativity surrounding gas-to-liquids ratio is misguided - what matters is the absolute volume of liquids produced & expected ultimate liquid recoveries per well. The wells at Pantheon are calling for more intense fracking to increase productivity. $PANR #PANR

Pantheon Resources is honing in on three key assets: Theta West (1.9 billion barrels of potential recoverable resource) & Shelf Margin Deltaic (404 million barrels) are most important due to their scale. $PANR #PANR

Alkaid (79.5 million barrels) has jumped the queue due to its strong seismicity, location, and self-funding potential. Strategic value of Alkaid is specific to Pantheon & smaller farm-in partners.
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Pantheon's fortune depends on oil prices & commodity cycle. Higher oil prices combined with lack of production growth in Lower 48 will refocus interest on Alaska. Constructive outlook on oil prices.
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Shorting early-stage exploration stocks by Muddy Waters is a "fools' endeavor and not something that is often done by investors with experience in the sector." $PANR #PANR

Drilling Prudhoe Bay in 1968 was more risky than modern exploration in Alaska. Pantheon's assets are easier and obvious compared to Prudhoe Bay.
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Large US oil companies are not yet focused on growth, but it's expected to change over 2023 and 2024. Depth and quality of well inventories is not a major topic of discussion in financial media. $PANR #PANR

Investors should be encouraged by Pantheon's direction of travel and understand what really matters for the company's fortunes. Betting against Prudhoe Bay exploration would have seemed more obvious than Pantheon's assets, due to challenges of Prudhoe Bay. $PANR #PANR