Pantheon shares jump on 1m-barrel estimate for Kodiak field

AIM-listed oil and gas group Pantheon Resources has received its third-party estimate for its Kodiak Field, which indicates nearly one million barrels of oil.

The stock, which had fallen over 75% in the past six months, jumped 20% in early deals to 16.38p.

Kodiak, formerly known as the Theta West project on Alaska's North Slope, is estimated to hold 962.5m barrels of total marketable liquids, according to the independent expert report (IER) by Netherland, Sewell & Associates.

The consultants gave a 'low estimate' of 437.8m and a 'high estimate' of 2,014.2m.

"This really is a big deal," said Jay Cheatham, Pantheon's chief executive officer in a statement on Tuesday. "A credible third-party estimate of nearly one billion barrels of recoverable liquids for a company the size of Pantheon is an incredible achievement, validating our geological model. This is the first IER conducted on our largest asset and will have enormous value in financing discussions and in attracting potential partners."

Pantheon said the IER supports its development plans for Kodiak, which involves the development of leases totalling 126,000 acres. "The company believes that this is one of the largest basin floor fan systems discovered onshore in the past few decades," Pantheon said.

David Hobbs, Pantheon's executive chairman, said the company remains on track to meet its target of delivering "sustainable market recognition of $5 - $10 per barrel of recoverable resources".