Pantheon Resources Plc (PANR) Earnings Call Transcript & Summary

Good afternoon, and welcome to the Pantheon Resources plc Investor Update. [Operator Instructions] Before we begin, I'd like to submit the following poll. I'd now like to hand you over to CEO, Max Easley. Good afternoon to you, sir.

Good morning, good afternoon, everyone. This is Max Easley. I'm your CEO of Pantheon. Before we get going today, I'd like to draw your attention to this disclaimer. I won't go through it now, but it will be on our website, and please look at it. We will be making forward-looking statements today. And so please bear in mind as we go through. So joining me today is someone you're very familiar with our Executive Chairman, David Hobbs, and also someone new to introduce you to, which is Erich Krumanocker. So Erich joined us just a few months ago. Like me, Erich has deep roots in the Alaska oil patch, and he's truly one of the industry's finest people. We're very, very lucky to have Erich, and you're going to hear a lot from him today as we talk about our forward appraisal plans. Before we get started, historically, we take live questions. We've been overwhelmed with really, really good questions from everyone, both before this webinar, and I expect during the webinar. Rather than cherry pick going through questions, we're going to aggregate them and then present them formally on our website you go through them. We want to make sure that we answer all the questions thoroughly. So things we're going to talk about today, a lot to talk about. First and foremost, overarching strategy and recent activities we've done to fortify our balance sheet. Lots of questions about that, about the state of the union around us, our portfolio and our activities. But I think the real topic most people are interested in today is the upcoming Dubhe-1 appraisal well, which is a huge step forward in progressing our resources at commerciality, and Erich will take us through that in some detail. But first and foremost, I'll hand over to David, who will take us through strategic items and what we've done recently in the area of corporate finance. Over to you, David.

Thanks, Max. So first, before we get into it, I just want to reinforce what Max has said, which is we intend to aggregate questions and make the whole experience more efficient for everyone. Second thing is there are a lot of questions that are asking for information that we wouldn't normally disclose. And just as a general principle, if there is information which we are -- which disclosure would hand competitive advantage to our competitors or potentially undermine our ability to deliver the best possible outcome for investors, then we won't be sharing that information publicly. And furthermore, there will be some questions that for regulatory or legal reasons, we can't answer. And so that applies definitely to financial information where the disclosures that we will make will always be those that are required by regulation or by law. We won't be sharing detailed specific information beyond those requirements. I want to remind you, it's now coming up on two years. But November 2023 was when we gave the major exposition of the strategy that we've been following for the last 18-plus months. And that was that we were going to seek to move forward to development to become financially self-sufficient by starting with the development of the Ahpun field. that we expected that would cost a total of $300 million to get us to that point, of which about $150 million would be required prior to first production from FID and from the start of development through to first production would be $150 million and around $150 million from that point forward. We said that we would look to source that from a variety of channels. Obviously, there's the potential for equity. There is the potential for vendor or offtaker financing. There is the potential for debt secured against the assets. There's the potential for farm-out and any other sources of capital. Always our guiding principle would be to find the source of capital that would be least value dilutive for investors and value dilution happens in a number of different ways. Whether we issue equity or we farm out an interest that is still a dilution of value in some form. Similarly, deferral and moving back in time is a dilution of value, time dilutes value. Someone's pushing slide somewhere. Let's just go back. Our strategy was designed to bring the field on stream by the middle of 2028, but to seek to do that earlier if possible, and that would fall into that question of time dilution of value. We have also mentioned that our strategy relied upon strengthening our balance sheet such that we were not going to find ourselves ever again in the situation at the end of 2022, start of 2023, where we were not funded ahead of the operation that we were undertaking and that we would always seek to be early in terms of getting money onto the balance sheet. And that really brings us through to what did we do at the back end of last week and announced at the start of this week. We had earlier in the year, raised $35 million from Sun Hung Kai, a bond that they had organized and had partially syndicated. We said that at that time, that provided us with the capital to drill this well, but it didn't provide us with the capital to drill this well and do all the other things that we might want to do and fund the next 12 months of overhead, et cetera. And so what we sought to do, we were thinking through whether or not we would need to raise equity before drilling this well. In the event, money came to us, and we took the opportunity to accept that money. It wasn't something that we've been planning for. Our plan had anticipated raising money later in the year. But when an opportunity comes, particularly in the market as it is today, to raise additional funds, we did so. And that was completed -- they came to us in the middle of the week. It was completed late on the Friday, and we announced it on the Monday. The price actually strengthened a little between the point at which investors came to us with the offer of fund. In addition to that, we took the opportunity to delever slightly, and that came through a combination. One was to accelerate amortization payments on the Heights bond. The other, as it related to funding that was put into the $16.25 million that was raised, some of the owners of the -- that second bond, the Sun Hung Kai bond asked whether in return for subscribing within the $16.25 million, there would be an opportunity for a conversion or a partial conversion. And with an eye to the overall funding path going forward and the opportunities maybe to release money from the escrow that's being held and therefore, provide us with more usable cash, we entered into a discussion, which resulted in the end in a total of somewhat more than $27 million, of which net new money in was the $16.25 million that we identified and mentioned in the press release. What that meant was that we had derisked on two or three different levels. One was that we wouldn't be exposed to any reasonable estimate of cost overrun and the potential for running out of money. Number two, what it meant was that we didn't arrive at the end of what we hope and expect to be a successful Dubhe appraisal campaign and then find the market saying, well, that's all very well and good, but we expect you to need money and therefore, find that we were, in a sense, damned if you do, damned if you don't. And as we've always said, to the extent that we can put additional funds so that we are funded through beyond the next operation, that's what we will seek to do. And if it means that we've got more leverage in any of the negotiations, and I'm sure Max will talk a little bit more about the prospects around the gas pipeline, the Alaska LNG project. But there is no question at all that our position in those discussions is enhanced to the extent that we are not going to be a supplicant party in terms of funding. So that's what we ended up doing, all relevant factors reported in the RNS that came out on Monday morning. And with that, let me pass it on to Max to talk about the portfolio more generally.

Thank you, David. Before we get into what people really want to hear about, which is the upcoming appraisal well and the follow-on development activities that lead to commerciality, it's sort of stepping back again to think about more of the state of the union of this company and what it represents. I always have that in our mind. You've seen this before. Our resource position is vast. It's 1.6 billion barrels, you do the math and add it up. Interesting question we got in advance was 1.6 billion barrels sounds like a lot. Is that a lot? And to put it into context how vast that resource is, 100,000 barrels a day would be a sizable company. And 100,000 barrels a day would be 43 years of production for 1.6 billion. Another way of looking at that is my previous employer, Apache Corporation is a sizable independent and their total proven reserves is less than 1 billion. To put in context, it is a vast sum of oil and gas. To draw your attention, a lot of what we'll be talking about for the next half hour or so are the catalysts coming our way. So the first thing we'll talk about is Dubhe-1, which is a huge appraisal well for us to unlock our resource in Ahpun. Sitting on the back of that, lots of things happen, and Erich will take you through the details of them. But right in front of us, of course, is the gas sales agreement. And going to next year, U.S. listing, these things all together lead to how we will finance a full development in the manner that David described a few moments ago. So we'll go through some of those in detail here momentarily. These six things, we've been showing them for a long time. These six things are what truly differentiates Pantheon. And as I mentioned some four months ago, this is what attracted me to the company, and it's also what attracted Erich to the company. But I would say, in summary, I learned from day 1 in the industry that the company with the best rocks wins. The company with the best rocks in the best place at the best time is definitely going to win. And that's really what differentiates Pantheon from other investment propositions. It's resource long, with 2.6 billion barrels equivalent. Lots of activity around us, all of which is tailwind, and it's in the right spot. And I say this a lot that -- and I can say this being from Alaska is when people mention investment in Alaska, you get a sharp intake of breath. First of all, it's cold. That must be technically challenging. Two, the infrastructure is really expensive there, isn't it? And third one is it's really hard to do business there. We're breaking all three of those paradigms because our approach to developing this reservoir is quite simple. The infrastructure runs right through our acreage. So it's as cheap as it could be. And all of the feelings and motivations of local, state and federal government is promoting this sort of activity in Alaska. So these six things have stood the test of time. If anything, the differentiation of this company is getting stronger and stronger as we move toward development. And then we show this slide a lot. I love this slide because it shows where these resources sit in one of the most prolific petroleum systems in the world. So having on nearly 260,000 acres sitting on state land in a perfect location with infrastructure, just south of the most prolific oil fields in North America is a phenomenal place to be. But for today, we're going to be talking about the one in orange, which is the first asset we want to commercialize, which is the top set of Ahpun, which represents 282 million barrels, again, a sizable figure as our first phase of development. So with that, I'm going to hand over to you, Erich, as people really want to hear about is how exactly are we going to commercialize that? And when are we going to do it? And that is really the topic du jour. So I'll hand over to you, Erich.

Fantastic. Thanks so much, Max. And before I dive into the conversation about Ahpun and Dubhe-1, I guess this is the first time I've had a chance to engage with this community. So I'd like to share a little bit about my background. I think Max touched on it earlier. First of all, actually, almost 30 years ago to the day on 4th of July, interesting date, I arrived in Alaska actually and started as a reservoir engineer and working Prudhoe Bay. So this is kind of the starting place of my career. I started in the office. I ended up doing some rotation on the north slope of Alaska, but all of that was in service of field development and production delivery. After that, I went to the North Sea and the Caspian Sea, again, leading development and production delivery. And then I returned to the U.S. Interestingly, in the role in the U.S., I was -- had kind of global teams, and one of those did include the Alaska team, which was accountable for really activity around development and production planning. I also spent a short stent at Microsoft as partner, really working the transformation of oil and gas businesses as well. So when this opportunity for Pantheon came along, it's really something I had to jump at. Max described the massive untapped resource base that's there. It's existing -- near existing infrastructure, which is amazing. The pipeline road right there, and it's back to where I started my career. And finally, I think our success in this can really drive in terms of Alaska, it really improved the people of Alaska as well. So anyway, I'm excited to be here and look forward to this conversation. So let me just zoom in a little bit. Max showed a map earlier, but I just wanted to zoom in to get people's mind around where the Dubhe pad is and the Dubhe location. So this is a satellite view. At the top, you can see the labels for the -- in yellow, the Dalton Highway and green, the TAPS pipeline. You see the Megrez basis as Megrez-1, which was the well. It's right where the Megrez pad was. The blue arrow gives an indication of where the Megrez trajectory went. So you can see the direction that went kind of up underneath the Sag River. So 2 miles to the south is where Dubhe pad is, where Dubhe-1 will be drilled. And you can see the blue trajectory kind of showing the general direction, and we'll come in a lot more detail around that trajectory. It's also worth noting there to the left, you can see the Pipeline State well. So that well was drilled by ARCO in 1988. And one of the key components of this to keep in mind around the infrastructure is that was drilled from an ice pad and ice road. What we actually have at Megrez and Dubhe is we've constructed gravel pads, which allow year-round access, 360 days a year, 365 days a year. So essentially, really, really good ability, gives us flexibility for ongoing development. So with that, what I'd like to do is let's step underground a bit. So first of all, I think all of our avid followers probably recognize this cross-section. It's been used before. We've added the Dubhe kind of line on here. But what I specifically wanted to do is show where Megrez is as a starting point. So Megrez-1, you can see was targeting the shallower sections here. So it was above that regional seal. And you can -- as we saw in the previous one, you can see it was further to the east and up to north. Now one thing that kind of to get your mind visually around this is probably worth thinking is if you remember where that pipeline state was, was directly to the west of Dubhe and then Megrez was to the north. If you imagine this picture in 3D, the Dubhe-1 well on this kind of comes out towards you. You can almost imagine it's sitting somewhere between you and the screen. So it looks like it's really close in this projection. In a second, I'm going to show you a cross-section that goes through Dubhe, so it makes a little bit more sense. So let me just go to that next one. So this is zooming in. So one thing I'd like to start here is Dubhe-1 is a significant turning point for the company. And this turning point is what I would say describing an exploration company, moving from that exploration company to a company that's focused on appraisal, development and production. And so right now, you can kind of look and say, so this isn't an exploration well. This is an appraisal well, particularly if you work your way from left to right, the Talitha-A well, which we've drilled, we produced oil in that slope fan and that Shelf Margin Deltaic B category, the dark greens there. Right there in the corner -- left corner, you can see the bottles from both of those zones. So we've actually produced oil there. The Pipeline State well that I mentioned previously from 1988, they logged pay and they got core in that in those -- specifically the Shelf Margin Deltaic, which is our primary reservoir as well. We've also produced to the north, the Alkaid well. We've actually produced oil out of that SMD as well. So for the most part, I think one thing that stands out from this picture is oil is there. Now we just need to figure out what's the best way to develop it. So let's dive a little bit deeper into the objectives for our Dubhe-1 well. So first of all, Max described the resources showed the picture overall. Really, this is about progressing these. Right now, we kind of -- we have good estimates that are there, but we need to get into the detail and assess our main target, which is the SMD-B for development. It obviously not only is for the oil development, it does prove the -- essentially our deliverability for the associated gas for the gas pipeline, but there's also some upside potential here. Essentially, we have these -- on the right side, you'll see some zones label 1, 2 and 3, and I'll come through those in a little bit of time here. It's actually a little bit of upside in additional to that appraisal. So first of all, if you look in our target zone, if you look to the left side at Pipeline State 1, the section was about 450 feet vertical thickness. At the location we're planning on drilling into the SMD at Dubhe-1, we have about 500 feet of vertical. So there's potential upside from a thicker location that could actually follow on to the next piece is if it's thick enough, there's actually opportunities for wine-racking, which hasn't been considered in our previous resource numbers that are there. So going through those three exploration targets. If we go to the top, that Lower Prince Creek. So this was -- for those that are watching closely, particularly Megrez-1, we did penetrate a similar zone, the Lower Prince Creek in Megrez. We got a slight bit of core in that area, and it was actually above 50% oil saturation. But those that have been following know that, that did produce water. One thing interesting in this area is, if you go back to Megrez-1, it was never original target of Megrez-1. It was actually the deeper section in that area. And the reason was is there was no seismic anomaly in that location. Where Dubhe goes, we're right on the edge of a seismic anomaly, which does give it potential that it does have hydrocarbon and higher saturations that would naturally flow oil. So some interesting upside as we go through that. The next one, number two, SMD-C. This is a section that has been penetrated and logged pay in both pipeline state that's shown on this picture, but also at Talitha. So we've actually logged this. And so it's another opportunity to confirm whether this exists further over to the West -- or sorry, to the east. And then finally, number three, the slope fan. At Talitha, we successfully produced that. I showed it in the previous picture, and we're hoping to be able to find additional resource below the primary target SMD-B in that slope fan. So I think to summarize the key insights here. In the most part, this is an appraisal well that will hopefully for us right to development. Offset wells have produced oil. We hope to use the pilot well to essentially optimize the well lateral. You can see the well lateral on the picture. And right now, we're planning the lateral to be around 3,000 to 4,000 feet. That's limited by our step out. If you remember the tremendous benefits we get from being at the Dubhe pad right next to the Dalton Highway, one thing that does result in is a longer step out, but the benefits are well outweigh the need of building a nice road. In terms of long-term flow test, after we've completed the fracture stimulation, we'll do a long-term flow test to not only get initial rates, but some of the additional understanding of the reservoir and flow components. One thing worth noting is future development wells, we do expect to be in the order of 10,000-foot laterals. And obviously, there's a lot of interest, particularly from investors of getting as big a rate as possible. We recognize that. We just need to balance that with the reality of having ability to drill from an existing pad as well as manage the risk of getting successful completion in the ground and completed. So with that, what I'd like to do is step forward a little bit into operations. So this is all great -- there's great plans, but what are we doing about it? So first of all, I want to start the Dubhe pad. So this is a picture from a few weeks ago under construction. You can see the various heavy equipment on there. So that was finished last month. It's just under 4 acres in size. So kind of getting my mind around that, that's kind of the equivalent of three American football fields, maybe two and a bit FIFA soccer football fields. So it's a pretty significant area. And one thing it does do, it not only allows us to drill Dubhe-1, but actually has space to drill additional wells as needed and put production facilities on. And I can come back to that in a little while around the project. The rig itself, the Nabors 105 is a rig that we have used Previously, we've used since the last 3 years, since June 2022, and it's actually been continuously with us since October 2024. It was the rig we used for Megrez-1, and it had very, very good performance for us. We delivered under schedule and under budget from the drilling side of this. So a lot of confidence and continuity with what we're trying to do. So what I want to do is dive in a little bit. I know in the Q&As that came in, there was a lot of interest around details of what we're doing when we drill this well. So just to kind of get everybody's eye in on this, on the right side, this is essentially a time, depth curve. Chart shows kind of versus time, where are we going to be subsurface. And so at the top and kind of upper left, zero time, right at the surface. And over time, we get rig up and then we start to drill hole. The colors also, you can see the key on the right give a sense of kind of ourselves drilling, kind of key components of drilling and running casing and then other points where we're collecting reservoir appraisal data. The one thing that's worth mentioning, however, though, we will also -- once we get below the top hole section, we will be doing extensive logging wall drilling. So even though the parts that say, drill to the top target reservoir, we have an extensive suite of logging there while we're drilling as well. So we're getting a lot of data throughout the whole part of this curve here. So let me just walk through this quickly. I mean right now, we're planning on -- we're in the process of moving the rig from the last slide, and we're waiting for approval, which we expect imminent to be able to spud the well. Once we get the approval, we'll start on the top hole section. We'll drill that top hole section. It's 12.25-inch hole. And we're going to drill down essentially through the permafrost and through some coal bed sections, which provide -- have risk of instability. And then once we get through those, we're basically tracking those from offset wells. Once we've got to that safe position, we will run 9 5/8 casing to basically stabilize the hole. From that point on, we're kind of in the reservoir and looking at reservoir sections here. So we'll drill out from that point at 8.5 inch, and we'll drill down through that Lower Prince Creek and that SMD-C section that I showed before, as I mentioned, logging wall drilling. And just before we get to that top of the SMD-B section, we will pull out pipe and running with core. And so you see that collect core section, we're going to collect a whole bore core, a section at the very top. We believe that's the highest quality based on offset wells. And so we want to collect that top bit to really understand our reservoir properties to underpin development. Once we've collected the core data, we'll pull back out and we'll continue to drill forward. We'll drill through the remainder of that SMD-B and then down into that slope fan that I showed in the previous -- so our goal here is to drill all the way through that slope fan into the shale below and leave a small rat hole so that we can get logs all the way to the bottom. Once we get there, we'll run some logs, particularly in the logging section. These open hole logs will include a check shot to really calibrate our location from seismic, which underpins not only the lateral, but actually future development of the reservoir. And then once we've gotten to that point, we will plug back the well. Obviously, at this point, we will have gathered data throughout this, and we'll be optimizing. We have a plan for the lateral that was showed earlier. But at the same time, we'll be digesting that in preparation to be able to drill the lateral as soon as possible. I think one other point worth mentioning here, we signaled previously that our costs from a cost guidance, I think there are some questions around that. We typically spend around $10 million on the drilling components and around $15 million on the completion components. There's obviously a long-term test and depending on the results that we get from that, that cost will vary around duration. Also on this, we have held various drill the well on paper DWOP reviews on this and underpin this with several decision trees to really make sure we manage our risk, not only from a safety, most importantly, but secondly, also from an appraisal, making sure that we don't miss opportunities to get the data that's required. So this data will be used and underpin our field development. So let's just skip forward a little bit around that field development. So our avid followers, I'm sure we'll recognize this as a slightly modified version of something we've used in previous webinars. One thing that has changed on this is we focus this directly on the Ahpun development. So you see that Dubhe-1 appraisal well kind of -- we've just gone through the details of that. Assuming our success here, we expect that three things really come out of the back of that. First of all, the U.S. listing that Max referred to earlier also allows us with the components to be able to finalize a gas sales agreement for the gas pipeline and also be able to secure project finance. One thing that you take a step back and say, well, wait a minute, wait, we get all of that done and then all of a sudden, we magically start building production pads. What's going on in that white space? So what I'd like to do now is spend a little bit of time and go down into what kind of -- what are we actually going to do to underpin the building of those facilities and what's required to develop this field properly. So this is a busy slide, so I'll try to walk through this as simple as possible. I think there's a bunch of questions that came in from the Q&A that this covers. So get you and your eyes in a little bit, you'll see kind of various rows and the kind of front-end part, which is refining the development planning. And then once you get over to the right, you'll see the construction kind of following those pieces at the top. On the left side, you see the Dubhe-1. Once we've gotten through drilling the lateral and the flow test, we learn a lot about production rates. We learned a lot about the fluids and the reservoir, and we will learn a lot about the reservoir character pressures, et cetera. Using that, you see the IID. It's in the footnote. It's hard to kind of follow that quickly. That's an interim investment decision, essentially making a decision to start spending money. And the first row, if we look, is really around the production facility. So getting the front-end engineering design. So kind of really working through what are the various opportunities to be able to build these production facilities. That costs money to start that engineering. We have done some initial scoping on that already. We have spent money there already, but really getting into this in preparation for moving towards construction. The second row there, and there were some questions around this is around the hot-tap into the TAPS pipeline. So first of all, we need to submit access to basically application for access to the Alyeska pipeline. Then we need to work with Alyeska and fund it, the design of that and then finalize and approve that design. So that line goes along there. I'll come back to FID, the final investment decision in a second. There's also an interim investment decision just below that, and there'll be long lead items that take a long time from our manufacturers, things like compressors and pumps in the first stage and then in the second stage, starting to perhaps order some of the modular production facilities. I think Max alluded it to earlier, we have a concept that we're going to have some modular production facilities to make this kind of like LEGO blocks so we can build up and basically optimize for our capital spend and drive value as much as possible. At the very top, you'll also see after that feed on production facilities, there is an interim investment decision point there. And what we -- this alludes back to the existing pads. We have existing pads. I showed the picture where Megrez pad is, where Dubhe-1 pad is -- Dubhe pad is. There's also the Alkaid pad. So we have an opportunity front end before some of the other things come through on permitting where we can make an interim investment decision to start construction at one of those pads where we already have year-round access. So before I go into the FID, the lower section there in green, this is all around the permitting and approvals. So first of all, the first ones covering things like air permits. Well, basically, once we have all of the data from Dubhe, we'll be able to put those in properly. We'll have the right sense of what the scale of what we're trying to do. Also, that underpins the first understanding of what level of we call wet land fill. So this is essentially pads and roads. So where can we start building roads out to pads. On the previous slide, when I showed the map where Pipeline State 1 is to be able to go out and drill somewhere there, you need an ice road or an ice pad. That's very inefficient because it melts away, your money melts away. So essentially, this is to be able to start to build the permanent facilities out in an optimum location. And the last piece is the environmental impact statement, the longer one or the environmental assessment, the shorter one. This allow us to engage in that process, hopefully, getting more of a shorter process from that perspective. So all that comes together in a final investment decision, the big red block that's out there. Once we get that kind of thumbs up and we move forward, then we can move forward with continuing to build production facilities. We can execute the hot tap and tie in into the Trans-Alaska Pipeline System. We can build the initial pipeline system and that means essentially our internal pipeline, the field pipelines that we need are required within the system. And then we can -- once we get those approvals on the wet land fill, we can start building our first drilling pads, the roads to those pads and drilling pads for year-round access and follows on from that, you can see a phase program, drilling pad, drill the production wells and then complete the production wells. And you can imagine a cascading view of that. There's only two showing here, which leaves us very close to first oil. So hopefully, that gives a good picture of how development could progress. There's a lot to play for. And I would say production could be just around the corner if we get this right. So I think this is ourselves and yourselves in the community, if we get this all right, it's pretty exciting times in pretty short order. With that, Max, I think I'll hand back to you.

Thank you, Erich. That was excellent. And I'm sure the entire community now shares my delight that you're with the company. There's a lot to do here, but we know exactly what to do. It's just a matter of doing it now. But I'm going to pivot to another state of the union item, which is the tailwind associated with Alaska LNG. We had a lot of questions that were similar to why are you drilling gas wells? I thought this was an oil play. It very much is an oil play, our asset, and David mentioned that earlier. The vast majority of our value comes from the oil and liquids. The gas provides a lot of benefits to us. One is the ability to get financing. One is from revenue, of course. This is really important for the state of Alaska, and it's really important to us to be aligned with the state of Alaska. So it's a very important part of our project, but it's not the value creator, but it's very meaningful for investment in Alaska. Most of you are very familiar with this because there's no shortage of news flow around this. The President of the United States talks about this specifically quite a lot. So there are multiple phases to this project. The one that's coming at us right now is an in-state gas pipeline, 800 miles from essentially Prudhoe to Nikiski via where the consumers are in the greater anchorage area. The biggest change in this, and I've mentioned this to everyone before, is as an Alaskan, oil and gas is always sort of an abstraction. It's something that happened on the North Slope. Government people talk about it and everyone knows it funds the government that didn't really affect individuals. The vast majority of the energy for the greater Anchorage area, which is where the boaters are and the consumers comes from Cook Inlet, which is very, very mature. I think Cook Inlet was discovered in 1957 Swanson River. So it's been a long time. It's very mature and the producers are now saying they can no longer service long-term production contracts, which leaves Anchorage in a very precarious position, whereby where the primary energy comes from is unknown. And as an Alaskan, shifting to full renewables is very difficult to do, very expensive, converting to oil is not going to happen. And how embarrassing as an Alaskan to import LNG, Alaska exports LNG, doesn't import LNG. And so the best solution for the state really is this in-state pipeline. We're a big stakeholder in that. We're the primary shipper. So as you know, we have a gas sales precedent agreement for this for a 20-year supply. And so we'll be the first shipper to provide primary energy to consumers of Alaska. And it's some debate when this will be finally FID-ed and what that looks like. It could be as early as this year. So again, our Dubhe well is very, very important to prove up the gas deliverability for that to occur. And so the state is paying attention to what we're doing as well. But it's a very, very exciting time for Alaska. We've been talking about a gas pipeline, well, since I started the company actually. When I started in Alaska was a year Prudhoe Bay came up plateau. Hopefully, that wasn't the reason. But -- and since that day, people have been talking about gas sales and it looks like it's finally coming to fruition with a lot of support from the federal government and obviously, the state as well. And the news flow around this is very, very strong from the federal government. Recently, several cabinet secretaries visited Alaska, the Secretary of Interior, Secretary of Energy to again provide even more federal support for this to occur. And since Glenfarne took over as operator of the project, they've been soliciting interest, both in terms of ownership of the pipeline and, of course, customers. And they've announced over $115 billion now of partner interest. Most recently, Thailand wants to secure 2 million tons a year of LNG. So again, a very, very, very positive story for this. Again, it's not the big value creator for us, but it certainly enables our project, not only in terms of revenue and finance, but it also offsets a lot of costs for us. We're quite prepared to reinject our gas. But that comes at a cost. It would be much better to send it to the consumers of Alaska to keep the energy of the state moving than to inject it into the ground. So moving into a summary. We got a question about who are all these new people coming into Pantheon? How are we choosing who comes in and what do we need? So this is the current management team. A couple of new faces on here. One you've met today, Erich. Erich came, as he said, he's for 30 years now, he's been taking assets from appraisal to development into production. That's exactly what we're going to do. So that's why we brought in Erich. We also have a new CFO coming in, Tralisa. Tralisa is a very experienced CFO, not only in developing oil and gas reservoirs, but also in terms of listing in the United States, which is one of our strategic priorities. And you'll get to meet Tralisa very soon. She starts on Monday as it happens. And what you should expect to see going forward is given that schedule of activities that Erich presented, you should see capabilities that make that happen. Top sites, people, pipeline people, plant people, et cetera, et cetera, as we move forward to development. So at this point, we're at the pivot between exploration and appraisal into development. What you should see in the future is people who are development people. People have seen that done that in Alaska and other places. Very exciting times. And not shown on here, but it was another announcement recently was we added a Board member, Marty Rutherford. I've known Marty for a long time. She's a fifth-generation Alaskan. She used to be Commissioner of the Department of Natural Resources, one of our key stakeholders. And she's a tremendous addition to our Board dialogue because of her depth of Alaska policy over the last 20 or 30 years, why things are the way they are and what direction they're going. So again, not only is the management team strengthening, but the Board is strengthening as well. So hopefully, that was helpful to everyone to understand not only the state of the union, but also what's coming our way in terms of catalyst toward progressing these resources into development and production. So I'll now hand over to David to basically summarize the webinar for us.

Thanks very much indeed, Max. And again, many of our long-term shareholders will be familiar with this slide just as they were familiar with our strategy, but it bears repeating not least for the benefit of those people who are coming new to this. There's activity in the short term, which is the demonstration, really the final hurdle before being able to move forward with development in order to make sure that we've got all the relevant data for planning and sizing facilities for fluid compositions for having enough associated gas to meet the planned gas sales arrangements. And it bears repeating, and let me reinforce what Max said. The real value driver of this project is the amount of oil that we produce. The thing that drives the financing strategy is our ability to supply gas because that significantly reduces the amount of equity, whether that is money pulled into the company through investor subscription or through a farm-out to some third party. It allows existing investors and as large shareholders, management are very aligned with investors to try to make sure that existing investors retain as much of the value as possible. On the basis of the targets that we've set ourselves, the existing portfolio has the potential at a minimum to deliver $7 billion at the $5 billion -- $5 per barrel of marketable liquids. And as I say, the majority of that value lies in the oil and associated liquids. The wins are following us in that regard, partly because there's more activity going on, on the North Slope. But a key part, and Max talked about it, is the following win from the commercialization of the gas. And that has really been one of the key planks. If we think back through how are we going to put $300 million into the asset, the ability on management estimates to borrow around $250 million against the planned conversion of the gas sales precedent agreement into take-or-pay contracts should allow us to get preproduction financing on better terms for the value of the company. And there is no doubt at all that we have an opportunity to ensure that what we're doing is not just good for our shareholders, but also solves critical issues for the state. And that creates a true partnership between us where we expect, if you go back to Max's three things that we all know to be axiomatic about Alaska that it's cold, that it's expensive and that it's hard to do business. Well, the cold, we can't do anything about. But in terms of cost and the proximity to infrastructure and the logistical supply chains that we've been working on planning out and in due course, implementing. And then in terms of the alignment with the state, we think we can definitely address those latter too. And I'm absolutely thrilled with -- I've said before, being able to attract a CEO of Max's caliber to help move the company through this transition from exploration and appraisal into development production. Erich is an absolutely first-class recruit to succeed in a role that Bob Rosenthal, his job was to find the resource. Erich's job is going to be to develop them, and we're already off to a fast start. And that evolution of competence and capability means that this company is now far better placed to deliver on the strategy that we laid out. So with that, it draws us to an end. As we said, we took into account a lot of the questions that came in before in formulating the presentation. There are a number of questions that ask for more specific information than we are prepared to release. For example, we will release our cash balance when we're required to by regulation. So at the year-end, at the midyear when we make those announcements, that's a regulatory requirement. But other than that, there is no point in our handing unnecessary information to our competitors and to potential counterparties. And so in general terms, we will be more discerning in terms of the information that we release. but we will be aggregating the questions and providing written responses just as we have for the last two or three webinars. And that, I think, makes for a much more efficient experience for everybody. The final thing that I would say is there are some people who are not clear about where they can find past presentations because what we maintain on the web page is the current corporate presentation. Well, every one of our significant revisions to the corporate presentation occurs through a webinar. All price-sensitive information, all new disclosure comes in the form of a regulatory news release. Just as you saw today, the release outlining new information that would be included in this webinar. And so if you go to the webinars section of our website, you will find all of the past significant presentations and the associated webinars. So if that helps people find the information they're looking for, then that's what I'd go to. And so we will not be holding, as Max told you upfront, a question-and-answer session now. We will be aggregating the questions, and we certainly didn't want to give ill-considered answers to questions coming in live and any that we were unable to answer, we will be following up in due course. So with that, back to you, Ali, I think.

That's great. Well, thank you very much for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback and all the management team can better understand your views and expectations. On behalf of the management team of Pantheon Resources plc, we'd like to thank you for attending today's presentation, and good afternoon to you all.