Pantheon Resources Plc (PANR) Earnings Call Transcript & Summary

Good afternoon, and welcome to the Pantheon Resources plc Investor Presentation. [Operator Instructions] Due to the number of attendees on today's presentation, the company will not be in a position to answer every question received during the meeting itself. However, the company [ will review all ] questions submitted today and [ will publish ] response where appropriate to do so. Before we begin, we'd like to submit the following poll. I'd now like to hand over to David Hobbs, Executive Chairman. Good afternoon, sir.

Thanks very much indeed, Paul. And we run to our first technical problem, which is the ability to move the slides, which have now solved. So apologies for that. This is our disclaimer. We're going to be answering a lot of questions and answers during the course of this. So please take note of the disclaimer. Delighted to have everyone here. This webinar is really set up in order to be able to address a lot of the questions that came in around the previous webinar we did where we laid out the company's strategy. This map is familiar to everybody. What we're going to be focusing on today is our strategy for extracting maximum value from 2 giant field development assets, Ahpun and Kodiak. Ahpun being the -- approximately 500 million barrels along the Dalton Highway, and just off to the west of it and Kodiak being some 1.7 billion barrels recoverable further to the west and in the deeper Basin Floor Fan. We explained in some detail in the previous webinar, so I'm not going to spend time today. But the objective of our webinar today is to reiterate what our strategy is, summarize it, clarify any points that weren't immediately clear and address your questions. So what we are aiming to do is to deliver sustainable market recognition of $5 to $10 per barrel by the end of 2028. In order to achieve that, we anticipate getting the final investment decision on Ahpun during 2025 and Kodiak during 2028. And we will be generating positive net cash flow that will fund the development, create the cash self-sufficiency for the company so that it is able to become a price maker, not a price taker. Financing anticipates no more than $350 million required to get to that point of cash self-sufficiency. And our anticipation is that the equity component of that will be significantly less than $100 million. To get to that, we anticipate having to drill 30 production wells from the 2 pads, Alkaid and Phecda, the names of the pads. Some of you will remember that there was a pad for the Alkaid 2 well, and there was a so-called Alkaid 3 pad that is what the Phecda pad is, and we've allowed for 1 in every 4 wells. So for each 3 production wells, we'll require 1 well as an injector well for disposing of water and gas and for maintaining reservoir pressure. And we anticipate needing 20,000 barrels per day of processing capacity for marketable liquids to be injected into the Trans Alaska Pipeline main oil line. To that end, we've begun the process of applying for a hot tap into the TAPS line, and that will be a couple of miles to the north of Alkaid unit license. There are some essential plumbing things that have to happen before and to enable all of this to happen. One is the establishment of the Houston headquarters we talked about, which will become the geographical, the corporate, the sort of financial and operational engineering central gravity of the company. We are in discussions with advisers on a U.S. or dual listing strategy, and that will be all geared towards ensuring maximum access to capital on the optimum possible terms, and we've begun the process of permitting for Ahpun Field development and for the TAPS tie-in. To talk a little more specifically about the order of things, I'm going to hand it to Jay.

Thank you, David. Well, this is the illustrative time line. As you can see, as David mentioned, there are lots of moving parts, lots of things that we will be doing at the same time, but the keys are, of course, the final investment decisions on Ahpun and Kodiak and the original drilling of the wells to get us up to that 20,000 barrels of oil per day. So a lot of activity between now and 2028, will, of course, the regulatory issues that we'll be going through, permitting and then, of course, just drilling the wells and executing properly on this strategy that we've laid out. So that's our illustrative time line out to the end of 2028. We'll be talking more about some of the details on that in our next webinar about Alkaid and Ahpun. So back over to you, Paul.

That's fantastic. Thank you very much indeed. Let's move on to some questions. Jay, David, as you can see, we've had a number of questions submitted today already, and we had a number of pre-submitted questions. So [indiscernible] if I can start with the first one, if I may. It reads as follows: the [ gulf in the ] value between what management has presented as positive exploration progress versus the market reactions are at the extremes when compared with our peers. Please factor in as many ways as you can communicate why the market is wrong into your June webinar and make the theme throughout.

So obviously, that was a question that was carried over from the June webinar a few weeks ago. We announced our strategy in that -- on the 28th in an RNS. And the strategy was designed to achieve sustainable market recognition of value of $5 to $10 a barrel, as I've explained. And management analysis is clear that subject to funding, the milestones are achievable, and we're going to seek to achieve them at the least possible value dilution for today's shareholders. We'll talk later about the number of different channels that the company is evaluating in order to optimize access to capital, and those can include reserve-based lending, equity, corporate debt, farmouts, et cetera. I've used the term [ EUI ] here. It's worth just taking 2 seconds to explain how we're defining it because there are 2 main sources of reserve definition, the Society of Petroleum Engineers under the Petroleum Resource Management System and the SEC, the Securities and Exchange Commission. The main difference is the point at which you can move from recognizing a resource to recognizing a reserve. The SPE only requires that you expect the resource to be commercially developable, in other words, has it crossed the economic threshold, and it can then be recognized as reserves, whereas the SEC requires the company has committed the capital into the development through its final investment decision. Pantheon has throughout used that more conservative definition. So that's the reason we will continue to be talking about resources during this presentation and over the coming years until we've achieved FID on each field. So the term may be reserves, it may be resources depending on where we're at in that process. Jay, maybe you can...

Yes. Yes, David. Thanks. Well, the current share price appears to reflect market participants' view as to both the commercial value of our assets and the likelihood that we can successfully bring them to market at acceptable levels of dilution. Our company's strategy aims to increase the market's perception of the value of the assets with our upcoming resource statements, but we also understand we need to demonstrate access to capital to get the recognition of that ability to bring the assets to market. In the absence of financing mentioned above or a renegotiation of the convertible bond, there is a supply of equity from the quarterly principal and interest payments. We recognize that. Management intends -- we do intend to bring new investors onto the register, expand the institutional ownership base. We're going to do that by promoting the company, providing the independent expert validation to our geological assessment and removing barriers to institutions in holding our stock. That may be driven by ESG concerns, the fact that we're pre-revenue or the current location of our listing or some other. Reducing this gulf in the valuation requires a number of steps that rebuild the confidence in the company's ability to effectively finance its strategy. We began that process with the June 28 RNS and webinar, where we laid out the strategy that aims to reach, as David said, financial self-sufficiency as our primary goal. We will be judged by our ability to demonstrate progress towards that goal over the coming months and years. It's an ongoing process. It's a series of small actions that builds momentum over time.

That's great. Thank you very much indeed, Jay. Next question we've got here. What are the plans for the next 6, 12 -- 3 years?

Got you. So plans for the next 6 months, why don't I cover sort of corporate and communication and then hand over to Jay to talk about some of the operational plans. The first I mentioned is establishing our Houston headquarters and consolidating corporate engineering and financial central gravity into that office. I'm moving to Houston subject to the speed at which U.S. [ consular ] services can operate post COVID. And the majority of the Pantheon team will spend a significant proportion of their time together in that office. We're targeting fourth quarter to be up and running fully there. Secondly, we're building the team and the operational capability in-house. We're enhancing internal and external operational processes and procedures and bringing some of the right consultants into the broader team to make sure that we are overmatching the problems facing us. And then third, we'll be expecting to receive and act upon the advice from U.S. -- from advisers on the U.S. listing and other considerations vis-a-vis timetable costs and tax implications and we're targeting the fourth quarter of this year to get on to that. On communications, we're planning an increased focus on smaller, more detailed webinars where necessary, obviously, preceded by RNSs where there's new information and that's geared to helping shareholders understand their investment and to remove some of the information and misunderstanding about the company that's out there. The next week, as Jay mentioned, we'll be scheduling a webinar that we promised to drill down on the Ahpun, well completion and frac performance and the implication for future wells and that will be Wednesday next week, it's just a question of getting the invitation sent out. Later this month, we'll issue an RNS and do a webinar on the Netherland Sewell & Associates report on Kodiak and that will include an assessment of field development economics as well. We're hoping to get it done before the end of this month. It will happen as soon after the report has been [ RNS'd ] as we can manage. Jay, do you want to?

On operations, thanks, David. So we're going to perforate and frac the Shelf Margin Deltaic horizon in the Alkaid 2 vertical wellbore. We're going to do that to gather fluid and frac design data for the Ahpun Field. The target date for the start of that operation is September this fall. And Pantheon recently appointed Senior Vice President of Engineering, Tony Beilman, as you guys -- everybody met him. He is an expert in Fracking and completing horizontal wells, having spent the last decade focusing on the U.S. unconventional reservoirs, the, Marcellus, the Permian, the Barnett, the Eagle Ford, et cetera. And Tony has completed an extensive review on Alkaid 2, and he's concluded that material improvements can be made with the next evolution of frac design. We'll apply some of these learnings to the vertical SMD test, and it's expected to provide really valuable data for the frac design of all of our future wells. We're going to analyze the drilling performance and solutions to allow the collection of the whole core for our next Kodiak appraisal well and a full logging suite prior to committing for the next well location. And this will follow the completion of planning for the Alkaid 2 SMD frac. So for the next 24 to 36 months, that includes completing the regulatory process for the hot tap into the Trans Alaska Pipeline System, the Ahpun development. We're targeting that for the second half of 2025. A proposed dual listing or relisting of Pantheon onto a U.S. exchange. Of course, that's subject to legal, regulatory, tax hurdles, et cetera, overcoming those. We target that in 2024. Securing funding for the Ahpun development from a combination of sources, that's vendors, debt, nontraditional sources, equity markets, presale [ accrued ] to ensure the maximum possible -- or the minimum, I'm sorry, possible value dilution to equity shareholders so they retain the maximum value in the company. That's target Q4 of 2025. And longer term, to launch the Kodiak development approval process with the objective of achieving a final investment decision on that in 2028.

That's great. Thank you very much indeed, Jay. I guess I think you've touched on an earlier question, future funding. Pantheon's recent fund raise, the question reads, which you raised gross proceeds of approximately $22 million provides sufficient working capital for corporate overheads, the resource reports and the SMD test at Alkaid 2, what's the expectation for funding for the coming winter programs?

So our primary focus is on bringing Ahpun into production and generating positive cash flows as quickly as possible. And those operations will be conducted after proper planning and review to overcome any past operational issues we encountered. Investors will remember that we've had 1 or 2 glitches and we're working hard to avoid that in future. On future Kodiak appraisal wells, our initial focus is to gather the necessary information to optimize development run to prove up additional volumes because we believe from our analysis that we've comfortably exceeded the economic threshold and the question isn't whether we're going to push forward with the development. It's about whether -- or what the optimum development concept looks like in terms of the location and number of pads, centralization versus distributed processing, et cetera. So we intend to collect whole core in at least 1 of the upcoming Kodiak appraisal wells, and we're not going to rush to meet a winter '23, '24 deadline at the expense of having a well plan that maximizes our chance of getting all of that information and so we will be updating on a detailed operational plan later this year after we've completed the short-term program and after we've completed all of the planning.

Great. Thank you very much indeed, David. Next question, just looking at the U.S. listing, U.S. investors, when can we expect Pantheon to secure the U.S. investment adviser status? What will be the terms of reference? Will there be any incentives based upon securing defined objectives?

Okay. So we're already in discussion with several U.S.-based investment banks intending to engage a preferred partner shortly. Terms of reference will be to assist the company in securing a U.S. listing or dual listing, accessing U.S.-based individual and high net worth and other international investors and to secure the capital overall to execute the strategy that we've laid out. We're not going to share confidential information relating to the precise terms of engagement or anything, but I can tell you it will be in line with normal arrangements consisting of some retainer and a success fee measured on quantifiable measures of success. So the only other thing I'd add is until we've got confirmation that there is a viable strategy for the listing, we're not going to be presenting a detailed timetable for implementing any change in our listing.

That's fantastic. Thank you, David. And just really extending the next question, U.S. and other institutional investors, again, something that you guys have touched on already. Has the [indiscernible] program being set in place for the presentation of the Pantheon investment opportunity to the U.S. investment community, including potential farming partners, hopefully for Alkaid and SMD? What else is Pantheon doing to get institutional eyes on its projects and appeal to the wider audience through mainstream news?

Well, we're going to raise the profile of the company and our assets, both privately and publicly through participation in non-deal road shows. We're going to speak at industry conferences, we're going to meet potential partners face-to-face. Much of this activity will occur prior to the opening of the Houston office, as David has mentioned, such as the non-deal road show after receipt of the Netherland Sewell report. But our objective is -- and we're already hitting the ground running now and in September. Will this increase in visibility is not dependent on moving the company's listing to the United States, we're going to undertake that under any circumstances.

Thank you very much indeed. Next question we've got here. You [indiscernible] outlined a strategy which targeted achieving recognition of value between $5 and $10, and I think it was on the earlier slide that we had, per barrel of resource by 2028. 2028 seems quite a long time away?

Yes. And that question came up. And to an extent, we answered it previously, but let me address it again. Just because our objective is to achieve $5 to $10 per barrel by 2028, it doesn't mean that it can only be achieved, or the value of that strategy will only be realized 5 years from now. Right now, the market is attributing $0.10 per barrel, and that reflects the skepticism that Jay mentioned earlier about the ability of the company to overcome the corporate technical, operational and other risks in executing the strategy. Maybe this is a bit more detail than really needed. But for example, you could download the Excel model from the Alaska Department of Natural Resources. And if anyone wants to e-mail [email protected], I'll happily send them the link to that. If you populate the model with the first stage of the Ahpun development, then what you see is the value per barrel comes out of between $5 and $10 per barrel. Now that is for a part of our resource and future resources next stage of Ahpun, for example, slightly lower royalties, slightly higher values per barrel. Kodiak probably where the reservoir is thicker and higher quality even better. So as we reach the FID for these assets, we see $5 to $10 per barrel being an attainable forward expectation. And if there were no risks to achieving that value objective, the stock would probably reflect the discounted value of that goal less whatever we have to invest in the meantime to get there. But the market is clearly factoring in the key risks and particularly an assessment of the dilution risk as we fund the strategy. So the value of proceeding on the strategy is not at the end of 5 years, it is the steps we take on the way that should make that future more inevitable. Jay, do you want to maybe...

Yes, David. So as we move forward and we demonstrate our ability to overcome each of these hurdles as outlined by David to a successful development in production, we'd expect investors to build their confidence in the achievement of the ultimate objective, and the market would then rewrite its valuation of the company. If the aggregate dilution ended up, let's say, even as high as 50% at either the asset or the corporate level up to the point of cash flow self-sufficiency and Kodiak FID, current Pantheon investors would still own the equivalent of 1 or slightly over 1 billion barrels of recoverable oil. So half of the aggregates for Ahpun and half of Kodiak, which would then start its development program with the value of, as David said, $5 to $10 a barrel, that would represent a 50 to 100x leverage on today's market valuation. But the value gearing to Pantheon's strategy is substantial in both the short and long term as investors see us meeting those strategic milestones along the way.

Fantastic. Thank you very much indeed, Jay. Next question we got here. Will -- sorry, when will another independent nonexecutive director be appointed?

So as you are aware, we appointed Allegra Hosford Scheirer at the end of June. We're considering other candidates in due course that can add to the governance and not only meet best practice requirements but benefit the company and its shareholders.

Thank you very much indeed, David. And just touching on that appointment that you've mentioned there, you appointed an independent NED this week. Comments? Should have combined those 2 together.

That's fine. I just [indiscernible]. Look, we released Allegra's background as a PhD from MIT, works for the USGS, North Alaska. So she's a pretty competent person. She's had an opportunity to do her due diligence coming on Board and in joining the Board, she is endorsing the quality of what it is we're trying to achieve. She brings the number to 6, and we'll definitely, as I said, consider additional appointments if we believe they'll enhance the governance of the company.

Fantastic. Next question we've got is around remuneration cost. This reads as follows: the remuneration of the CEO and CFO for the year to 31st December was $528,000 and $676,000, respectively. They also received [ 3.35 million 10-year ] options with a strike price of 67p. These figures seem excessive. What's being done to reduce these figures to a more acceptable level, particularly bearing in mind the degree of which ordinary shareholders suffered since September '22, when these directors exercise options and sold shares at GBP 1.23 per share. The figures for the third executive director were reasonable. So I'll hand that back to you.

Look, we absolutely take onboard investors' concerns about remuneration and the Remuneration Committee, it will indeed at our next meeting, be addressing executive compensation and will report compensation in line with the requirements to do so. It's absolutely true, the Pantheon share price has fallen substantially over the past 9 months. It's been a period of great progress, though towards development and realizing the company's strategy, even if not great progress in terms of the share price. Pantheon today is a company that owns 100% working interest in a project over 193,000 acres with an oil in place over 20 billion barrels and we think 2 billion barrels of recoverable resource. That's certainly a better place than we were 1 and 2 years ago. Our job is to ensure that the share price properly reflects that. And I'm not going to say more on that, Jay, maybe you want to...

Yes. Along that line, David. In 2023, Wood MacKenzie and Alaska Upstream Review of 2022 referred to Theta West 1 well as the fourth largest discovery globally in 2022 and the largest onshore discovery in 2022. They did note that more appraisal and production tests would be required before it would consider it commercial. Additionally, the independent experts at AHS, Baker Hughes described Kodiak or Theta West as a world-class petroleum system and also in 2022 IHS Markit referred to Talitha-A as a top 10 discovery well for 2021. So lots of accomplishments in the field.

That's great. Thank you very much indeed, Jay. Next question is, does Jay intend to stand -- sorry, stay on as CEO until Pantheon has taken over?

I plan to stay with Pantheon, I'm committed to deliver the Board's strategy period.

Perfect. Thank you very much, Jay. Next one we've got here. What would happen to director options if a director was to step down? Do they have a shelf life? Or would the former directors still get the full benefit of the forthcoming SMD tests, if the SMD test lead to game-changing farmout?

Well, just as a technical matter, share options that have vested continue to benefit the recipient of those vested options under the terms of their grant. Unvested share options would normally be canceled when someone leaves the company before they vest. So that's -- I'm not sure [ there's ] more to say on that.

That's great. Thank you very much indeed, David. Next question we've got here is, would the directors be ready to enter into voluntary undertaking to restrict their share sales until certain conditions agreed by new Remuneration Committee are met?

So obviously, options that have already been granted are subject to the company's dealing policy. I'm not going to prejudge the actions of the Board because share sales are a matter for individual directors based on their personal circumstances and subject to the dealing policy. So obviously, any new options or any new sales would need to conform to the director share dealing procedure. If the Board determines or that the Remuneration Committee of the Board determines that other restrictions would benefit the company, we will consider implementing them. But I'm not looking for anyone to voluntarily restrict their ability to exercise their [ property grants ]. Incidentally, this topic hasn't come up very often in the last 17 years because as far as I'm aware, there have only ever been 2 instances of director share sales. Sorry, Paul, I interrupted you.

No problem. So David, you carry on. Right. Next question we've got here, again, sort of touch again on that. Why does Pantheon still retain the 2012 director incentive scheme, which would award the directors with 2.25% of the value of the net booked reserves irrespective of the share dilution and share price performance? The 2012 scheme was designed for a different resource base and prior to Pantheon's merger with Great Bear and appears excessive in creating an outsized free carry, not directly tied to share price performance. Please can you explain why this does not create a misalignment with shareholder interests?

There's a lot to unpack in that. But what I'm going to tell you is that the remuneration structure, both in terms of key performance targets and quantum of potential rewards will be reviewed periodically and to ensure its suitability. And I'm absolutely sure that with the new members of the various Board committees, this is a topic that will come up for discussion.

Thank you, David. Next one we've got here. Please, can you provide examples of other AIM-listed companies that have been successful for their shareholders of the scheme such the 2012 director incentive scheme?

Well, I'll interpret that, I think, as it was intended. Look, there are a lot of companies who have incentive schemes that are linked to delivery of key performance targets rather than just share options because there is a fear that share options on their own can sometimes run into the money for reasons outside the performance of the executives. So most companies have a combination of share options and performance-related targets. At the time the scheme was initiated, it was believed that the booking of reserves would generate significant value, and it was not an easy performance target to achieve, and it was appropriate to the shape of the business as it was then. But as I just said, in line with where the company is at, the remuneration structure is going to be reviewed to ensure it's suitability going forward, and it will be reviewed on an ongoing basis because the company will be evolving on an ongoing basis.

Thanks, David. I think we have a couple of more just questions around that. How do long-dated 10-year share options allow the directors' statements about seeking a near-term prove up and exit strategy? We've got one final question around that as well, which I'll pick up with you afterwards.

Okay. I'll take that one. So I believe this question was [ posed ] prior to our refocused strategy that we've outlined recently. And it does not fully rely on a near-term exit. This is a long-term business. You put your money in upfront and you get your payout over a long period of time. We always intended to ensure that the Pantheon had the capacity to exploit the asset itself or, as we called it, a [indiscernible] strategy. The speed of that was always limited by the availability of capital. As restated in the RNS and the webinar, Pantheon's strategy does not rely upon a near-term prove up and exit strategy now. It doesn't mean that a sale on appropriate terms would not be entertained. We would have to be more attractive than our alternative of achieving FID on Ahpun and Kodiak Fields by 2025 and 2028, respectively.

Thanks, Jay. I think you have covered this off, David, but I'll say it anyway. Will you allow the shareholders a vote on any new directors' incentive scheme?

Look, any incentive scheme would be put to the vote of shareholders if it was required to be so under the corporate governance codes, securities laws, regulations, listing rules, anything that the company is subject to we would abide by.

That's fantastic. The next one here, why are you not taking legal action against certain anonymous avatars on Twitter and other social media platforms for their repeated disparaging statements and allegations regarding Pantheon's business case and assets?

Well, we've spoken to our advisers and our legal team. And where it's clear that a legal action has occurred and where we believe it could be economically beneficial outcome is likely we would explore those options. We're aware that there have been significant unfounded and untruthful statements made about the company. We have not publicly responded to such comments to date. However, we know that in the absence of providing clear evidence, refuting those claims and allowing an information vacuum to develop would be a further risk from such allegations and we aim to close that gap.

I think our strategy going forward is to provide as much transparency as possible as quickly and as frequently as is reasonable to avoid the risk of people being able to fill the vacuum with that kind of thing. But I think that -- let me just reiterate and support what Jay said. There's no point in performative response. If we are going to pursue legal action, it's going to be because there's a clear almost guaranteed outcome that is to the benefit of the company from doing so.

Great. Thank you, both. Is it only the [ short in ] campaign that's resulted in the fall in Pantheon share price?

Well, I'm not going to comment specifically on share prices because it's outside our control, and I don't think anyone knows for sure what drives share price on any given day. But the challenges faced by the company includes some that are company specific and some that are macro. The failure to achieve expectations that were set or allowed to be set on the Alkaid 2 well and its failure to deliver an unambiguous success and ensure sufficient balance sheet strength in the wake of what we shared in the last webinar of significant cost [indiscernible] and in terms of the overall program, when we completed testing [indiscernible] at Alkaid. And that allowed short sellers to be able to bet on a supply of shares to mitigate the risk of being short. At a macro level, we've seen oil prices fall substantially since the middle of June '22. There have been inflationary pressures. Interest rates have gone up, and those have also had a material impact. But I think the Board takes responsibility for the performance of the company. It recognizes the best strategy for dealing with the current situation is to mitigate those vulnerabilities and that mitigation of vulnerability and ensuring we become self-sufficient as quickly as possible is what informs our strategy for the future.

Thank you very much, David. Assuming the part of the reason of the Pantheon share price was [indiscernible] by an absence of operational activity, will Pantheon's strategy include operational activity in the short to medium term to support a re-rate and a rising share price?

Well, we do recognize the news flow, including operational results can drive short-term share price movement. Our focus now is on taking the steps necessary to achieve Ahpun and Kodiak FIDs in the shortest time frame and at the lowest cost and minimum possible dilution. We'll refine the time line shared in the June RNS and webinar to provide firm dates and milestones on our path to achieving the goal that we've mentioned and David mentioned at the start of $5 to $10 per barrel of recoverable resources by the end of 2028.

That's great. Thank you very much indeed, Jay. Given the short thesis focuses on Pantheon's plays being gas, condy, what evidence they support oil reservoirs?

Well, these reservoirs contain oil and liquid phase. It's true the gas-oil ratio is a level that would be defined as an oil field. For prudence, our development modeling makes no assumption that future wells will show any change to the composition of mix that we saw at Alkaid 2. The liquids we encountered includes condensate produced from the well and the liquids that could have been stripped from the gas phase with refrigeration will be combined into marketable liquids that will be exported by the TAPS main oil line. Analysis of the well test indicates that marketable liquids recovered at Ahpun production stream meet the specification for pipeline liquids and as we described in the January 2023 webinar, the TAPS quality bank would be expected to yield about 90% of the volume lifting [ entitlement ] versus the volume exported at TAPS. So whatever we put in at the front end, we get about 90% of that volume at the back end or as we described it about a 10% reduction in the overall value from TAPS, [ ANS ].

Thank you, Jay. While we've got here, we've been told the prospective partners will look at the evidence of the resource rather than Pantheon's market cap, we are sure that [indiscernible] Netherland Sewell are working to produce that evidence. With such a fall in market cap, what incentives are there for prospective partners to invest millions of dollars rather than simply proceed with the takeover of price that undervalues the company's true value and prospects? Indeed, have there been any such approaches? Obviously, I appreciate what you can say from a regulatory point of view...

Paul, we're just -- we will not comment on potential transactions until we're at a point where we have a degree of certainty that permits that or something that requires a disclosure.

Yes. Thank you very much, Jay. Next one we've got here, I think can perhaps fill in some of the gaps for this one. Who negotiated and responsible for the terms negotiated? How do the terms of results so far compare with terms of convertibles negotiated by other companies on AIM and elsewhere?

Well, look, the decision to issue the convertible was a Board decision. The Board takes responsibility and is accountable for it. Our advice at the time was that the terms were not inconsistent with similar instruments. The repayment schedule is for a little less than $2.7 million every quarter. But we're working hard to deliver shareholders a clear and coherent strategy that removes much of the misinformation about the assets. And we expect the Netherland Sewell report shortly, which will provide an independent assessment on Kodiak and then in due course, with the testing of the Shelf Margin Deltaic and the subsequent Netherland Sewell report, we believe that we'll be able to begin to allay some of those concerns, the share price may well begin to reflect a lower level of concern. And so the cost of the convertible bond would be less onerous. But it's -- a, I mentioned earlier, it's worth thinking what we got in return for using the commercial bond; and b, recognize that it's clearly going to be central to management thinking going forward in terms of capitalizing the company to bring ourselves out from under the overhang of that convertible bond. So we wouldn't want to be in the situation we're in today. That's the reason we're seeking to not be in the situation we're in today and to remove that overhang.

Thank you very much, David. Again, sort of following that, why did Pantheon not come up with other ideas to avoid the extra dilution caused by the fall in Pantheon share price?

Yes. Very good question. What we had initially planned to raise funding after the completion at Alkaid 2, we had expected that to occur in October, early November. When operations were delayed as a result of the sand blockage, lack of the availability of a rig to clean it out, couple that with the impact of mandatory close periods on release of the company's interim financial results, it really wasn't until Q2 of 2023 that we were able to undertake a fundraising. We all know market conditions at that time were pretty challenging, especially for preproduction oil and gas companies. It was in part affected by the material fall in oil price David mentioned earlier, the rise in interest rates, other macro themes. At that time, it was unrealistic to expect to farmout of Alkaid in that short time period. And for the reasons mentioned previously, we deemed that an equity fundraising was less dilutive than a farmout at Kodiak. We're focused on our initiatives and future strategies to mitigate dilution. We've always worked hard to do that for value to all the shareholders.

Thank you very much, Jay. Why did Pantheon not pay the most recent [indiscernible] using the extra cash it raised at 17p but instead chose to go for even more dilution by issuing shares, approximately 14.53p to the bondholder?

Well, look, we -- as I said, we recognize the overhang from the bond and removing that overhang as a priority. But until our financing strategy is finalized, our preferences for liquidity to ensure that any transaction that we undertake is from as strong a position as possible.

And David, you have mentioned this and touched on it earlier on, but if Pantheon was to receive a cash payment as part of any farmout, would it be able to accelerate repayment of the convertible loan or set aside the cash in escrow to settle quarterly payments of cash rather than shares?

Yes. Look, we're looking at all options to relieve the overhang and whether cash came from a farmout or from any other source, we will apply it in whatever delivers the highest value and helps to minimize value dilution prior to achieving cash flow self-sufficiency.

Why does eSeis not mentioned Pantheon's projects on its website? Is it because Pantheon's assets are currently discoveries and not yet established producers?

We just don't discuss the eSeis website with them. That's just not part of our remit.

Thank you, Jay. With the current low stock price, investors are concerned about dilution and issuing shares. Again, I think that's come up with a few questions we've had through. What is the company's approach to attract new investors? Is there any sort of revenues besides raising capital?

Well, look, we share investors' concern about potential value dilution and our strategy is designed to minimize overall dilution on the way to self-sufficiency. But until we have got positive cash flow production, we're going to have to continue to raise capital from a variety of sources, and I ran through those earlier, of which equity is only one. And so the simple answer to that question is, there's nothing we can do other than raise capital until we have revenue, which is why our primary focus is on developing positive net cash flow to fund the operation going forward to minimize dilution, ensure shareholders have as large a share of the value by the time we reach the $5 to $10 per barrel target in 2028.

Are you planning to revise the casing design of the horizontal wells to increase the size of the production casing?

Well, first...

Change of pace.

I'm sorry, David, were you about to say something?

No, that's a real change of pace.

Yes, it is. Little -- back to a little bit of engineering. So the casing size didn't impact any of the operations or the production at Alkaid 2. I'd just say, generally, during early exploration and appraisal, our focus has been on ensuring reliable operations that deliver the required data. And once we're in development and production, then the focus would return to optimizing value of production. Our strengthened team, including Tony, Michael and our many service partners will turn to this and planning for the future production wells. And that will include the optimum casing and tubing program to ensure we can drill long enough laterals and to capture the highest return on investment for each well in the future. So good question.

Thanks, Jay. How many months of runway does our company have based on the current cash balances and work plan? Which milestones does management aim to achieve based on the $22 million raised during the last funding?

Well, in simple terms, we've got around 12 months of runway depending on the precise investment decisions and expenditures that we incur. So that should cover testing of the Shelf Margin Deltaic in the Alkaid 2 well, delivery of the Netherlands Sewell reports on Kodiak and Ahpun, establishing the Houston office, executing our preferred option for stock exchange listing and progressing our regulatory approvals. And sorry, I've forgotten one. Sorry, finishing the SLB dynamic model, which is an essential input to development planning. Just to be clear on that one. The dynamic model isn't a report per se. It is a tool that allows us to do the engineering, to optimize the development economics.

Thank you very much indeed. What have got here, the $350 million needs to be raised before Pantheon gets to free cash flow positive. Some of this can be reserve-based lending, but how much do we need to raise, excluding reserve-based lending? What are the contingency plans if capital markets for small-cap oil and gas exploration companies are not conducive? And while the current strategy may have pivoted away from being over-reliant on farmouts, is it now over-reliant the vagaries of a volatile stock market?

I think Bart Simpson put it best when he said, you're damned if you do, and you're damned if you don't. Look, our strategy anticipates that any particular funding channel could become unconducive, and it's designed to avoid overreliance on any individual source. We've not dismissed the farmout any more than any other approach to funding. What we are determined to do is to try to create competition between options to allow us to reposition ourselves as a price maker, not a price taker. And it's a little bit like Winston Churchill talking about energy security. Security is comes from variety, and that is our strategy to make sure that we have security against any individual channel of finance becoming unconducive.

Thanks, David. All companies are reluctant to farm in on terms that management finds attractive. What needs to happen that can realistically change the lack of enthusiastic competitive interest in Pantheon assets? And what are the talent and skills gaps that we need to augment to the current management bench to give us the capacity to get there?

Well, we've talked extensively about the first part of that. And we've also taken steps to broaden and deepen our team, both with our service partner engagements, eSeis, AHS, Baker Hughes, SLB, et cetera, and with the internal hires beginning with Tony Beilman. We've refreshed our Board of Directors, Allegra has an incredible CV. There are some additional needs that we'll fill in the coming months. We'll share that progress with you as we migrate the operations and financial and technical center to Houston.

Thanks, Jay. Next one's for you, actually referenced to you, David. Executive Chairman, David Hobbs led by example and set the right tone when he declared on the June 30 Proactive Investors interview. I'm a big shareholder, a bond paid for every share. With the share price at the current depressed levels, many shareholders are concerned about Pantheon's generosity issuing dilutive share options to directors and management at these levels. How can Pantheon build and nurture the kind of owners mentality that our Executive Chairman has demonstrated, David Hobbs, through and thoughts on building a culture that attracts missionaries rather than mercenaries?

Someone obviously must have heard a presentation I gave when I was in South Africa -- in Saudi Arabia rather about the culture we were trying to build a [indiscernible]. Look, firstly, all shares owned by management have been bought and paid for. There are shares owned by members of the team that they subscribed for in the most recent fundraising, for example, the company has issued share options in the past as part of an overall remuneration scheme. Pantheon hasn't issued any share options to management in 2023. And I don't think there's any question in my mind that we have a team of missionaries, not mercenaries. Every member of the team believes in the assets, and we are all committed to delivering on the strategy that we've laid out and doing whatever it takes to achieve that objective. So it's obviously flattering that someone single me out. But in truth, I don't think I'm any different than the rest of the team. We're all absolutely committed to making this work. And they have every share that they own as a share, they have both paid.

Thanks, David. I think we have covered this enough, but just if there's anything further to add. Are steps being taken to remove the company's debt and the relentless issuance of shares and interest? I think we did pick up on a few other questions that come through.

Yes, we've answered that. But I mean, we're just not going to provide a running commentary on any of our specific plans. And as we've said, we are acutely aware of the consequences of the convertible bond. But without that, we wouldn't have been able to drill and test, as David said, Theta West, and test [indiscernible], drill and flow test Alkaid 2 and that really allowed us to gather the data that underpins our commercial development plans at Ahpun, and avoiding, as we said, unnecessary dilution is paramount for us.

Thank you very much, Jay. David once again referenced to you. David, I've recently articulated concerns regarding margin erosion if we were to produce and sell oil from Alkaid 2 prior to TAPS pipeline connection. However, if this -- if there is a case to do so in small scale to demonstrate to the market we're capable of producing and selling oil in commercial quantities, even if it was done at breakeven basis by doing so well in advance of the 2 years required to be TAPS ready, if it resulted in a materially higher share price, why do not create more attractive funding options for you?

Well, that question shows an appreciation of the multidimensional trade-offs between different paths to reaching the objective. We are clearly going to look at the balance between spending money and the value return, including reduced dilution of those investments. We've not ruled out the potential for future wells completed to demonstrate production capacity and composition. But those plans are part of an overall program that delivers cash flow, cash self-sufficiency at the lowest reasonable level of dilution. And absolutely, the question touches on the kind of deliberation that we're having as we look to optimize that path forward.

That's great. David. Could you update some plans and time lines to flow test SMD?

Yes. So Bob, we're currently evaluating the bids for the mobilization of the necessary equipment, and that's primarily the rig and the horsepower necessary for the frac to conduct the flow test, and we expect that to start in September. However, and we've discussed this at Board meetings, if the price is to mobilize the equipment and services for -- and this is going to be, again, a single well operation if they're unreasonable, we won't shy away from deferring the activity until we have a better plan that makes best use of shareholders' funds to achieve our strategic goals. We don't believe that will be necessary, but we need to have those contingency plan. And that's -- the same holds true for further appraisal on Kodiak, and our priority is always to conduct cost-effective reliable operations, consistent with meeting the time lines of [ FID ] on Ahpun and Kodiak into '25 and end of 2028.

Another one just touching on management shares. What's stopping management from purchasing shares here and now? The current pricing environment is a perfect opportunity for management to make substantial purchases in the open market. Actually, it's an incredible upside over the next 5 years and sizable open market purchases aid confidence in management, a win-win. The need for a blackout period can be circumvented and only has a limited duration as a valid reason for lack of insider purchases.

It comes across as -- the way you read it, that's almost a rhetorical question. Look, we're not going to comment on the investment capacity or decisions of individual members of the management team. Buying shares is not a requirement of employment, nor should it be. And I'm certainly not going to prejudge what other financial commitments members of the team may have. We will deal in shares under the share dealing rules in place for the Board and announce any transactions if they happen, but we're not going to prejudge or commentate on that here.

Thanks, David. Just moving back with the share price around current levels, what's management plan with regards to $35 million of convertible debt that's still due?

Look, we've sort of addressed that. We're not going to provide a running commentary on it, but I can absolutely assure you. It's -- the fact that I'm about to tell you, it's $34.3 million tells you it's an important focus. There's nobody on the board who is not aware of it, and it's central to our financing strategy to address the overhang.

And again, I think, we've covered this so far. Are there any plans to deal with the toxic conversion, like [ funders ] and the death spiral?

Yes, asked and answered.

Yes, fine. Are you still open, is Pantheon still open to a farmout?

Yes, absolutely, we're open for a farmout. If it offers, as we stated, a path for less value dilution than the alternatives on the journey to our cash self-sufficiency. It's important to have a strategy that anticipates the need, as David has said earlier, for competitive tension between potential bidders within a specific channel and between channels for the capital we need.

And these 2, perhaps almost combine them, I may read both of them actually. What was the justification of the previous Alkaid 2 well design. Why wasn't a 10,000 feet lateral used initially? And the question after that, were there any mistakes made during the first design that could have been avoided with the information that is known at the time? So kind of 2 for 1 there, guys, around the same point.

Yes. So we're going to address those issues at the Ahpun and Alkaid 2 webinar. We plan that for next week. So those questions won't need to get resubmitted.

We'll address them. We'll pick them up and sweep up into [indiscernible] for that.

Thank you both. For the frac optimization, as mentioned during the last shareholder presentation, that very high costs had to be paid due to being held hostage to a single vendor. How did it come to that? We were in that situation? How do you know it'll not happen in the future? For the sand transport, how did it come that we didn't use a local vendor? Why do we go to vendor in Canada? Could you please disclose the names of the 2 vendors? Sort of a bunch of questions in one there.

Yes. So once again, next week at the Ahpun, Alkaid 2 webinar, we'll answer those.

Just to be clear, I don't think even next week, we're going to be disclosing confidential information.

Yes. we won't name names.

And just, I guess, closing off on that point, when will we start seeing revenues from the new world design?

Well, right now, we don't envision production prior to our Ahpun development approval from the State of Alaska and the completion of the hot TAP into the Trans Alaska Pipeline System. But as David answered up above, we'll always look at options.

And just so we read out the questions here, but we have covered this also. I don't think we're going to have to address any plans for listings on other exchanges. I know we spoke earlier about the U.S. How do you plan to deal with many [ mistruths ] and ensure another coordinated short attacks doesn't happen? Again, I think we've covered that one also.

Yes, I think we have. I'd just say, to be clear, it's not our plan to engage in dialogue on social media or bulletin boards or wherever most of that kind of narrative happens. We're going to use whatever the most appropriate channels are to share details of our progress towards a sustainable market recognition of $5 to $10 per barrel of expected recovery. So I know I sound a bit like a broken record.

Thanks, David. And again, I may combine these 2 because they're quite similar. What's the company's cash position? How can you assure us that you won't need to raise any more cash? We've touched on that going through. What needs to happen to convert our asset into cash flow generating? When do you expect the time lines for that?

Well, I'll take that. So we've stated many times that we need to raise about $350 million capital through multiple channels as Dave -- reserve-based lending, volumetric payments, industry transactions, new equity. And we're going to -- our goal is obviously, as we've stated, minimize dilution. We've laid out our timeline. It foresees production, which will come hard on the heels of the Ahpun FID, and cash flow generation would begin as soon as we have liftable quantities of ANS and Valdez. So it takes a few days for transport down the pipeline from pump station 1 or wherever a hot TAP is down to Valdez. And until that point, our focus is on investing in all of those activities that are going to add value through the data that it provides. And to the extent it moves us forward toward that goal of positive net cash flow.

Thanks, Jay. Again, David, I think you've covered this off. But how many months of runway does the company have based on our current cash balance and work plan? Which milestones is management aim to achieve based on the $22 million raised in the last...

I think that may have been a reenter of a question that had been previously...

Agreed, agreed. If the CPR comes out with material lower numbers to SLB than yours, then how are you going to explain this to the market as shortage could play on material low numbers?

Well, look, bluntly, an independent expert's report is exactly that. It's independent. We're going to share all news, whether it's good or bad, the same way and allow investors to make up their own minds as to how to value the information released. We will RNS the Netherland Sewell report and share the full document, and we'll conduct a webinar afterwards to discuss the content and how it fits into the company's plans to bring these huge assets to cash flow and achieve the stated valuation realization that we're aiming at.

And again, just following that, if all goes to well, when do you envisage first production?

Well, as we've stated shortly after the FID are Ahpun, and we have planned to achieve that before the end of 2025.

Thanks, Jay. Perhaps a bit of a reiteration here from an investor, just really probably trying to clarify a couple of things. Are there plans for equal shareholder representation on the Remuneration Committee? And if not, why not? Are there plans to revisit review existing options as they currently do not see [indiscernible], to be particularly achievement-based. Again, if not, why not? I frame these questions from a philosophy of generously rewarding measurable success.

Right. Well, I'm not sure I understand the question because I don't think shareholders typically have representation on Board committees. So if I misunderstood the question, I'd invite whoever that's from to send it, to [email protected], so we can make sure we are addressing that question. Look, there are no plans to reprice existing options, which currently are well out of the money. The point about having performance targets as well as options I think we've addressed earlier. The Remuneration Committee is going to examine the most appropriate mix to ensure that the incentives match the achievement and to create the maximum alignment with shareholders.

And David, I'm just conscious we have gone through the air, if you're happy to carry on, we're happy to...

Why don't we -- let's finish the questions that were submitted before and then that we can run through what's been put online during this, and we maybe knock off a few of those and then come back to others.

That sounds great. Next one we've got here. I think it's relating to a previous webinar, quite like a deeper explanation of Slides 7 to 11. I think Slide 7 may have been missed or covered later in the webinar, just having a look at that.

Yes. So we plan to address those in the upcoming Ahpun, Alkaid 2 webinar. That will be a primary focus.

That's great. Another one, I think just a bit more about what we're doing here, but could you elaborate on how this platform be allowed you to move forward. I'm a fan of the Q&A, will this [ form allow ] to answer questions pre- and post-webinar in an orderly fashion, which we're obviously doing. So let's say yes to that one. I'll answer that one for you. With regards to the webinar, would you also be inclined at the end to do a summary, which I'm sure we'll cover off.

Just quickly, I mean, this webinar was, to an extent, the TLDR version of the previous webinar in order to create a vehicle for clarifying and answering the questions that were submitted after in some cases after that webinar. So yes, is the answer. And we're committed to using this platform or whatever platforms we use to allow going forward, this would be the norm to have the opportunity for pre-asked questions and live Q&A and to try and make sure we answer every question that's asked.

Thanks very much, David. With this -- well, the webinar focused on the RNS. I'm guessing at least they're being focused on Kodiak. Could you reiterate the importance of Ahpun's plan and how this will roll into Kodiak's development?

Yes. Similar to the above answer, this was focused on corporate questions and a summary of our corporate strategy. We'll address Kodiak and Ahpun in subsequent sessions in much more detail.

One investor pre-submitted this question, saying wouldn't be able to attend. So thanks for sending that through. Will it be promptly put up on your website? Also does all the Q&A section reflect this on your own website moving forward? Will you provide a webinar and list the Q&As of each webinar, so we can see them on your website?

I know, Paul, you're going to send a link, so that the link to this should be available as quickly as possible. In terms of how Q&A is handled, we'll work out what is the optimum way to make sure that everything is as easily accessible through whatever platforms to investors.

And just to reiterate, the investors can presubmit questions ahead of meetings via the IMC platform and also post-event, you'll be able to review the responses to questions that we've had today. Moving on to the next. Are the directors planning on selling any more of their personal shares? Again, I think you've touched on that, but if there's any...

Yes. But let me just reiterate. No director has expressed an intention to sell any personal shares.

I'm sure many people are looking for news on Pantheon. When can we realistically expect the [ SPE ] report and also be looking at Kodiak as well as Ahpun? Please elaborate.

So we're going to address the questions on Kodiak more generally during a planned webinar following the RNS for the Netherlands Sewell report. Ahpun and Kodiak are both subject to the technical work currently being conducted by SLB for development planning purposes, that's the dynamic model David mentioned earlier. We don't anticipate a specific report from SLB on that as it's a model. It's not really a report. And it's used for development planning by the company, by consultants, contractors, et cetera, and in discussions with the State of Alaska about the developments.

Could you provide a detailed conservative breakdown, describing the development, permitting and other steps required to get the TAPS main oil line connect and completed in 24 months, ideally with the chart. Is there some scope for any of these steps being done concurrently or accelerated? Could you commit to providing progress update on getting the TAPS connection completed along with your periodic operational updates? Who will be the person directly responsible for getting the TAPs main oil line connection done on time?

Well, we're really fortunate to have Pat Galvin on our team, and he leads our legal, regulatory and commercial activities in Alaska. If you recall, he presented the TAPS quality bank illustration in our March webinar. He's really an expert in the process of achieving permit approvals. He was Commissioner of Revenue and the Petroleum Land Manager for the State of Alaska in the past life. He's familiar with all of the requirements to move a field forward to production, and he'll apply that expertise for Pantheon. We will, of course, share significant updates from our process when we have price sensitive information through RNS as appropriate, obviously.

Thanks, Jay. Next question we've got here. I believe that today, Pantheon had only to apply for permits at the Alaskan state level. Do you see any potential risk or potential for bottlenecks when arising when Pantheon applies for federal permits or access to TAPS?

Well, just to be clear, we've received federal permits in the past from the U.S. Army Corps of Engineers, and that was associated with [ wetlands fill ]. All the regulatory processes do involve risk, whether it's state or federal. That said, access to TAPS, it's regulated. It's a common carrier pipeline. We believe we'll meet all the regulatory requirements necessary to gain the access on a nondiscriminatory basis as required under the relevant rules.

Can you give us an update on the key personnel of the business? Have there been any reshuffles or people move from previous positions?

Well, other than my becoming Executive Chairman; and Tony Beilman joining as Senior Vice President of Engineering, we haven't changed or reshuffled in any way. Obviously, we'll continue to evaluate the needs of the business, strengthen the team where needed, most importantly, ensuring people can play to their strengths and acquiring the expertise before it's required to undertake the specific task. Jay and I have very complementary roles that allow us to back each other up. So we've also broadened the executive capacity, both strategically and operationally.

That's fantastic. Thanks, David. Has Pantheon been in discussion with any providers reserve-based lending? Can you share your understanding of what are currently the minimum conditions just to be satisfied by Pantheon or to successfully negotiate such a facility? What would be the size of the facility for it to be commercial interest to the banks?

Well, sorry, similar answer to a number of questions looking to go too specific. We're not going to provide a continuous commentary on the specifics of the financing plan. But we will obviously, when appropriate inform shareholders of significant progress. We are -- just to be clear, we're not assuming that we'll be able to borrow against anything other than proved producing reserves as we bring wells on to production. As I explained in the Proactive Interview a couple of weeks ago, the likely borrowing base of each well is larger than the cost of drilling a well. So development drilling is liquidity enhancing and we expect to be able to negotiate a suitably large facility that we can draw down against as we bring wells on to production to ensure that we minimize the need to raise equity for the majority of the development CapEx post production start-up. So that implies a facility that will definitely be large enough to be attractive to the provider.

Thanks, David. Will you be able to access any preferential financial support from the Alaskan State development funds for financing the $20 million infrastructure cost of TAPS pipeline tie-in and/or $20 million cost of facilities upgrades to strip out all the liquids for putting all of them into the TAPS pipeline?

Yes. Well, look, again, we're not going to provide or unable to provide a continuous commentary on discussions with third parties, not least because they're confidential with those third parties. But we're going to ensure that all sources of potential financing are examined with the intention of minimizing the dilution to existing investors between now and the point at which the company becomes self-sufficient.

And just really a follow-up with the next question. Could you offer to forward some of your potential future production into the U.S. strategic oil reserve a price favorable to the U.S. government and sufficient to get the project off the ground?

Look, it's a creative idea. And we'll certainly consider all options for funding in the least dilutive way possible. I'd hope for a price that was attractive to us and that made the U.S. government squeak a little bit, but that's just a negotiation.

And again, next question we've got, have you seen JAPEX Management Plan '22 to 2030 and their plans for international investment. They've recently cut a JV deal with Longboat Energy -- Energy's Norwegian subsidiary. Do you think they'd make a good potential partner for Pantheon?

Paul, we're familiar with the number of transactions taking place around the industry. We'll consider all options to finance our development in the least dilutive manner as we said, for us and our investors to gain financial self-sufficiency. So we'll explore all the options.

That's great. There's a perception as evidenced by the recent Bloomberg article of 10th of July by a Liam Denning, ensure only the biggest oil companies can afford to take the risk and the time to develop our Arctic fields. How are you going to overcome that hurdle and perception to your new strategy?

Jay, do you want to...

Yes. So as we said repeatedly, our assets are unique in their location. They're close to the Dalton Highway and the Trans Alaska Pipeline System that greatly reduces the cost of getting to first production from billions of dollars from the developments to our West to hundreds of millions of dollars. And as David said, the equity portion of that to a fraction of that. So we think we're in a unique position with an incredible asset.

And look, we intend to overcome the hurdle in perception if that's the case through the actions we take. Jay's right. We're uniquely positioned, but don't let's forget it can cut both ways because the perception that this is major territory has allowed us to tie up an enormous resource base that we have today of some 2 billion barrels recoverable without potential competitors who may have been scared away by that perception. So it cuts both ways. What matters is our ability to execute a plan that we've laid out that shows that Liam Denning probably could do with spending some time with Pantheon.

In the interest of energy security, would the Pantheon management team consider the possibility of [ lobbying ] the U.S. Treasury Department for timely CFIUS approval for an interested foreign party to farm in at the right price?

That's yours, Jay.

So -- repeat the question, please.

I'll tell you what, no, look, I mean the CFIUS approval for foreign investment in the U.S., it's not our plan to speculate about whether or not we would be successful lobbyists. [indiscernible] if someone does transaction [indiscernible] we could to give it a realistic chance of achieving approval. My guess is a farm-in from a North Korean stands no chance of CFIUS approval farm in from British company, probably similarly stands a better chance.

I'm sorry, David. I was laughing about your comment about Liam Denning. So I totally missed the question.

Just the last few, really, we've got here. What's the contingency plan in case the application for hot TAPS rejected?

Well, there are other options to tie into the pipeline. It could result in additional cost. We could inject oil into the system, for instance, at Pump Station 1, Prudhoe or Pump Station 2, a little bit south of our leases. But as we stated, there really is no reason to believe that the regulatory process won't result in a successful application of our hot TAP.

And then we've got, what was the water cut for the Alkaid 2 well, please?

Yes. We're going to post an Excel file for the production from Alkaid 2 after the Ahpun, Alkaid 2 webinar next week.

Paul, should we just quickly skip through some of the questions online. Some of them, we won't be able to get into today, and we'll follow up. But the first one, I think, is a repeat of the question about will we sue people making liable statements against the company. And I'd refer back to our answer on that. The one about -- do we know who our shareholders are, the answer is, for the most part, absolutely, but we'll address -- it's a thoughtful question, and I'd like to address it more thoughtfully than in the closing minutes of this. As the team engaged in a credible manner with main voice in the oil and investment banking world, the answer is, we're in the process of doing so. We haven't encountered any problem with them taking our call when we reach out. Whatever conversations I've had with Mohammed bin Salman, I'm not about to share on a Webinar. The reservoir parameters acquired when drilling the Alkaid 2 well, I think we can in the SMD, I think we'll cover next week. Benefit of year-round access -- why has there been such a delay from completion of the flow testing to testing of SMB? The answer is, in simple terms, it's much cheaper to be using -- not be operating in the tail end of the winter and also to give time to mobilize the right pumping horsepower and the right units to have a trouble-free operation. The -- is it still considered an economic advantage to develop both the Alkaid deep along with the SMD from gravel pads. Absolutely, yes. That's why it's so central to our strategy. Would the management take their children's future and buy shares today? My view is investing in shares would enhance my children's future. And so I'm not sure I accept the premise of the question. When will Alkaid 2 test the upper reservoir? We mentioned later in September. Not [indiscernible] the Board, not acknowledging shale has been a long journey since Pantheon was listed in 2006. No, I'm acutely aware of how long a journey it's been. I've been an investor since a little after the original IPO of Pantheon. That's the reason that our strategy has been recast to give the best chance of delivering the highest value as quickly as possible. I'm very happy to engage more deeply on that question. [indiscernible] by all means, you can e-mail to [email protected]. The question about compensating Board members based on quantitive KPIs, absolutely, as answered during the earlier questions. That's thank you for the statement. Why the Board of Directors doesn't buy shares to give reassurance to shareholders and also the market? I think we answered earlier that we're not going to prejudge or at least I'm certainly not going to prejudge the ability and financial position of any director, nor should buying shares be a requirement of employment. Details on the TAPS tie-in cost of the application if the lead time was previously known, then why was the application not started years ago? Well, the simple answer to that is that until we had got an unambiguous test from the Alkaid 2 well that underpins the economic attractiveness, any application would have been speculative because the regulator wants to know that you're actually going to have oil put in there before they instruct the common carrier to create it. So the process has to happen in an order, and we're now moving forward as quickly as reasonably can be from the end of the Alkaid 2 lateral test. Market abuse, can't write off social media. We're absolutely not going to write off social media. What we said is we're not going to engage in debate on social media, as a great friend of mine once said, no one ever won an argument against a drunk person. And no one has ever won an argument on Twitter either. And so we will certainly engage in terms of using social media to transmit the company's message, but we won't get into arguments with individual people that merely raises their profile. The answer is we are doing everything we can to minimize the lead time on the connection to the Alaskan pipeline. What keeps me awake at night? Well, I'm just approaching that age where the capacity of my bladder is what keeps me awake at night, most often. And the -- where are we? Energy security, yes, is there a way to direct register shares, so the shares are held in our own name, not in nominee account? I don't know the answer to that. Jay, I don't think you know the answer to that either. But please [indiscernible], please, can you send that question to [email protected], and we will find out what the right answer to that is and share it with you.

All of our shareholding is documented in the annual report. So if...

This is about investors holding shares directly in their own names, rather than with the accounts [indiscernible]. I know I had a problem with my own nominee and Computershare being unable to work with them. So I feel it intensely. I don't know the answer because I got 3 different organizations, all telling me that it was 1 of the other 2 that were responsible for the inability of the systems to talk to each other. So but do please send that question, and we will get as clear an answer as we can. And if the problem can't be solved, we'll tell you it can't be solved. And if it can, we'll point you in the right direction. Jay, are there any closing words you want to say before we wrap up?

Yes, David, I do. I want to thank all of you who've watched this live. We really appreciate you taking the time. We are really all committed to this company. We all believe in these assets. There's no question that we have what is truly world-class. And we're going to work our strategy and deliver the value to our shareholders. I want to thank Paul for indulging with us and asking the questions. David, your [indiscernible], thanks a lot.

Thank you, everyone.

Back to you, Paul.

Fantastic. Thanks so much for covering off so many questions and going way beyond the hour as well. I think it is well appreciated by your investors. David, Jay, thanks indeed for updating Investor Day. I please ask investors not to close the session. You'll now automatically be redirected to provide your feedback. The team can better understand your views and expectations. It's going to take a few moments to complete and that's greatly valued by the company. On behalf of the management team, Pantheon Resources plc, I would like to thank you for attending today's presentation. That concludes today's session. Thank you, and good afternoon to you all.