Q&A

What is the latest update on the Alaska LNG Project?

Pantheon’s role in the AK LNG project is the proposed supply of gas for in-State use up to 500 million cubic feet per day (mmcfd) during the initial 20 years of operation. In January 2025, the AK LNG project sponsor, the Alaska Gasline Development Corporation (AGDC) announced that it had entered into an exclusivity agreement and term sheet with Glenfarne that, if finalized, would result in Glenfarne becoming the project lead and majority member of the project owning company, 8 Star Alaska, LLC.

In mid 2024, Pantheon announced it had entered into a Gas Sales Precedent Agreement (GSPA) with 8 Star Alaska. Under a full Gas Sales Agreement (GSA), which the parties committed to use their good faith efforts to finalise by 30 June 2025, Pantheon would provide an initial 20-year supply of its low CO2 content natural gas into the proposed 800 mile gas pipeline to transport natural gas from the Alaska North Slope down to tidewater at Nikiski, Alaska. The agreed price would be $1/mmBtu, with options under which, in exchange for additional consideration, the gas price could be reduced, potentially to zero. Phase 1 of the AK LNG project, building the pipeline from the North Slope to Southcentral Alaska, could proceed prior to commitments on subsequent LNG components in order to relieve an impending energy crisis in Southcentral Alaska (including the city of Anchorage).

Late 2024 and early 2025 saw positive momentum on the Phase 1 project with Wood Mackenzie presenting a report at the request of the Alaska Legislature where it estimated a net benefit of US$16 billion to Alaska resulting from the proposed pipeline when compared to other possible solutions, such as imported LNG. Furthermore, following President Trump’s inauguration, he immediately enacted an Executive Order titled “Unleashing Alaska’s Extraordinary Resource Potential” (https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-alaskas-extraordinary-resource-potential/ ). The Order states, amongst other thing, that the USA will “prioritize the development of Alaska’s liquified natural gas (LNG) potential, including the sale and transportation of Alaskan LNG to other regions of the United States and allied nations within the Pacific region.”  Additional resources are available, including the Final Wood Mackenzie Alaska LNG Phase 1 Economic Validation Report, from the AGDC website.

Pantheon whole-heartedly supports the AK LNG project, including working with the State of Alaska to enable the commercialisation of the helium potential of the Kodiak field, for the benefit of Alaskans and to support the funding and development of Pantheon’s core oil projects on the North Slope.

Which gas is committed to the GSPA that supports Phase 1 of the Alaska LNG project? 

Gas produced from all of Pantheon’s leases (including Ahpun East leases) would be dedicated to the proposed Gas Sales Agreement with the AK LNG Project. In addition, Pantheon could sell any gas that exceeds the proposed contracted volumes that, in the highest case of 500 mmcfd for 20 years, would amount to 3,640 billion cubic feet (Bcf) out of a current estimate that exceeds 6 trillion cubic feet (Tcf). The Pantheon gas resources include Kodiak, the Ahpun West topsets, the Alkaid horizon.

Do you have an estimated timeline for the US listing? 

The Company has maintained its efforts to prepare for a US listing, including considerations to ensure we protect all of its shareholders (including those in the UK). The precise structure and timing are subject to the counsel of expert advisors retained by Pantheon but the underlying work to ensure readiness to capture the optimum market window is being done, with a high level target of late 2025 to early 2026.

What will happen to Pantheon shares held on AIM following a US listing?

The Company has consistently said that it will seek to achieve the optimum outcome for its current shareholders and that means the owners of the shares listed on London’s AIM. Holders of PTHRF are, in fact the owners of AIM shares through the trustees that commit to hold a share of Pantheon Common Stock for each PTHRF unit held. A US listing will not mean the immediate cancellation of the UK listing because that would not benefit shareholders that are unable to hold a NASDAQ or NYSE listed share.

How can investors be confident in the independently verified resources of 1.57 billion bbls of marketable liquids and 6.6Tcf of natural gas?

These figures for Kodiak, the Ahpun western topsets and the Alkaid Horizon within the western Ahpun area are the sum of the best estimates prepared by three highly regarded independent reserve engineering firms;

1. Netherland Sewell & Associates
2. Cawley Gillespie & Associates
3. Lee Keeling & Associates

Additionally, Pantheon has benefitted from technical input of other leading experts including AHS (providers of Rock Volatiles Stratigraphy or RVS), eSeis (AVO and seismic petrophysics) and SLB (static and dynamic reservoir modelling, subsurface development planning etc) among others to support management estimates.

Following the recent issuance of $35M of convertible bonds, how will the Company finance operations before reaching breakeven?

The Company is reviewing all options to finance the development of the assets to achieve financial self-sufficiency in the least dilutive way possible. Whether there is dilution at the asset (e.g. farm in), project financing or any other of a range of options, the proportion of the value retained by existing shareholders is the primary concern of management.

What oil prices are you modeling for your future profitability forecasting?

Pantheon uses a range of oil prices and other macroeconomic inputs to assess both the value targets outlined in the Company's strategy and the potential cash generation from its operations. The likely break even oil prices that deliver a 20% rate of return are in the $35/bbl range and cash-on-cash breakeven is in the $25/bbl range.

Does Pantheon still target market recognition of $5-$10 per barrel, or is there another metric you are evaluating?

Pantheon has put delivering shareholder value at the heart of its strategy and continues to focus on Ahpun and Kodiak developments to deliver free cash flow generation in the near term. The valuation of $5-10/bbl is an indicative metric to demonstrate value from the Company’s resources relative to its current market capitalization and that target is unchanged, but ultimately differentiated total shareholder return is the objective.