Pantheon Resources set for upside catalysts as Alaska project advances

Zeus Capital sees upside catalysts for Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF), including a potential Kodiak farm-out and follow-on drilling in Alaska. The broker, in a new note, pitches a 49p per share price target that's multiples above the small-cap's current price of 11.6p. Breaking down the bullish call, the broker details that the punchy valuation comprises 27p for Kodiak, the project that's seen as a key driver. Pantheon has shifted its strategy to focus on Kodiak, its largest discovery, which NSAI estimates contains 1.2 billion barrels of 2C liquids resources and 5.4 trillion cubic feet of gas. The company is now seeking a farm-out partner to help fund further appraisal and development, with Zeus saying Pantheon is engaged with multiple potential counterparties and expects an update by the end of summer. “A successful farm-out would provide new funding, alongside technical endorsement of Pantheon’s significant Alaska discoveries,” Zeus said. Attention would then turn to the planned Theta West #2 well, targeting the Brookian basin floor fan northwest of previous drilling. Zeus said the well is designed to test whether shallower, less compacted sections deliver better reservoir quality and could potentially be drilled during the coming winter. The broker also highlighted emerging gas infrastructure as an important part of the investment case. Plans for an Alaska LNG export project and North Slope pipeline could eventually provide an outlet for Kodiak's gas, potentially reducin...