Pantheon Acquires Remaining 10.8% Stake in Alaskan Talitha Unit
AIM-listed Pantheon Resources Plc has reached an agreement with Perth-based Otto Energy Ltd. to acquire a 100% stake in Borealis Alaska LLC, whose sole asset is a 10.8% working interest in the Talitha unit on Alaska’s North Slope. Pantheon currently holds the remaining 89.2% working interest and a 77.05% net revenue interest in the Talitha unit
Under the terms of the deal, Pantheon will issue approximately 14 million ordinary shares (valued at approximately US$8.02 million as at January 18th, 2021) to Otto Energy, subject to a lock-up until June 30th, 2021. In addition, Otto Energy will retain its existing 0.5% of 8/8ths overriding royalty interest (ORRI) in any future production from the unit.
The Talitha unit comprises 16 leases covering an area of 44,463 acres on the Alaskan North Slope, located close to the Dalton Highway and the Trans Alaskan Pipeline. Primarily targeting the Brookian and Kuparuk formations, the unit includes both the Talitha appraisal (Brookian) and Talitha exploration (Kuparuk) projects. First production from the unit is expected this year, and work plans include drilling of the Talitha #A well (spudded on January 13th). Gross P50 recoverable resources associated with the unit are estimated at approximately 373 million barrels (MMbbls) of oil.
London-based Pantheon is engaged in exploration, development and production activities in the United States, with operations in East Texas and on the Alaskan North Slope. Upon completion of this transaction, the company will hold a 100% working interest in the Talitha unit, with an 86% net revenue interest.
“We are very pleased to acquire this working interest from Otto. We will now have a 100% working interest in the Talitha Unit at the same time we are drilling ahead with the Talitha #A well. Following completion of this transaction, Pantheon will have a 100% working interest in all of its Alaska North Slope projects,” said Jay Cheatham, Pantheon’s CEO.
“The successful sale of Otto’s 10.8% working interest in the Talitha Unit to Pantheon creates an exciting opportunity for Otto to participate in Pantheon’s broader, high quality Alaskan portfolio as they progress their activities in Alaska,” added Mike Utsler, Executive Chairman of Otto Energy.
The transfer of ownership is conditional upon approval by the Alaska Department of Natural Resources (DNR).