Pantheon confirms winter pause at Dubhe-1, shares slide

(Sharecast News) - Pantheon Resources shares were sliding on Monday after it issued a shareholder update on its Alaskan North Slope portfolio, confirming a winter pause on the Dubhe-1 well and a renewed strategic focus on the Kodiak field.

In the letter, chairman David Hobbs said the company had continued during 2025 to develop what it believed could become a major oilfield on the North Slope, supported by accelerated appraisal activity, new leadership and fresh capital.

He said Pantheon had entered 2026 in a strong financial position following capital raised during the year, giving it flexibility to advance its priority assets.

Pantheon said the Dubhe-1 development demonstration well, drilled to test the Ahpun reservoir, had not yet delivered the production outcome sought but had generated valuable technical data and confirmed the presence of mobile hydrocarbons.

The well had been cleaning up for nearly two months, during which time it had produced approximately 100,000 barrels of water, 20 million cubic feet of gas and around 100 barrels of oil.

Around 200,000 barrels of stimulation fluids were injected during completion, with about 50% recovered so far.

The company said results to date suggested higher or more mobile water saturations than previously indicated, though it remained unclear whether that reflected stimulation effects or reservoir conditions.

Given the cost of winter operations, estimated at around $150,000 per day, Pantheon said it had chosen to pause testing in order to carry out a planned pressure build-up test and further diagnostics, and to reassess its operating cost base.

Testing and possible interventions were expected to resume in the spring when operations can be conducted more cost-effectively, alongside continued analysis of data gathered from the well.

Hobbs said the decision reflected "prudent financial management rather than diminished confidence in the asset".

The company said lessons from Dubhe-1 would directly support its ongoing focus on Kodiak, which it described as the cornerstone of the portfolio and the primary driver of long-term shareholder value.

Kodiak covers around 170,000 acres and has been described by Wood Mackenzie as one of the largest global oil discoveries of 2022.

Independent estimates from Netherland, Sewell & Associates put best-estimate contingent liquid resources at around 1.2 billion barrels, with additional upside of approximately 600 million barrels.

Pantheon said it was planning further seismic reprocessing and evaluating the timing of a future appraisal well, potentially as early as next winter, alongside possible farm-out opportunities.

Hobbs said Pantheon's strategy remained resource-led and capital-disciplined, with a focus on projects capable of generating early free cash flow to support self-funded growth and limit shareholder dilution.

He added that assets located entirely on state land and close to the Trans-Alaska Pipeline and Dalton Highway offered material advantages in development timeframes and costs.

Pantheon also outlined changes to its leadership team during 2025, including the appointment of Max Easley as chief executive officer, Tralisa Maraj as chief financial officer and Erich Krumanocker as chief development officer, alongside the addition of Marty Rutherford to the board.

On funding, the company said that as at 21 December it had unaudited cash, cash equivalents and term deposits of $27.2m, prior to the settlement of remaining Dubhe-1 expenditures.

Pantheon said it would continue to manage liquidity prudently and intended to prioritise future capital programmes through farm-out arrangements to limit dilution.

"While the results to date are not yet conclusive, ongoing analysis will help refine our strategy and strengthen our path to commercialisation, as well as confirm our approach of prioritising capital efficiency and technical rigor to maximise shareholder returns," Hobbs said.

At 0943 GMT, shares in Pantheon Resources were down 52.7% at 8.62p.

Reporting by Josh White for Sharecast.com.