Pantheon Resources : Interim Report 31 December 2021

PANTHEON RESOURCES PLC

INTERIM REPORT (UNAUDITED)

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

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Pantheon has made significant advancement across its entire petroleum portfolio for the half year ended 31 December 2021 and into 2022. The improved macro environment for energy in 2021/2022 and the more recent geopolitical events in Russia/Ukraine have again reminded the world of the importance of securing reliable energy sources, such as oil, in safe, stable jurisdictions.

Pantheon entered 2022 in a strong technical and financial position, enabling the continuation of its projects in Alaska, where it is currently involved in the largest operating campaign in its corporate history. Through its high-impact projects on the North Slope, Pantheon seeks to transition from a pure exploration company to an oil development and production company.

There have been several significant achievements since 1 July 2021, as outlined below:

Completion of $96 million fundraising

In December 2021, Pantheon completed its largest ever capital raise, securing $96 million through a combination of US$41 million equity and US$55 million convertible debt which allowed the Company to move forward and execute its proposed 2022 work programme.

The programme include:

1. the drilling of a vertical test well on the Theta West project;
2. testing of a well on the Talitha project; and
3. the drilling of a well on the Alkaid project, planned for mid-2022.

Collectively, the Company estimates these three 100% owned projects have the potential to contain 17 billion barrels of oil in place ("OIP") and over 2.2 billion barrels of recoverable resource. The Directors believe this to be one of the most impactful oil operations in the world this year.

As stated above, Pantheon intends to drill the Alkaid #2H horizontal development well adjacent to the Dalton Highway and Trans Alaska Pipeline System in mid-2022. With success, the Alkaid #2H well will become the first oil producer for Pantheon on the Alaska North Slope, representing a significant milestone for the Company, generating valuable production cashflows.

Spudding of Theta West #A well Post Period End

The Theta West #1 well was spudded in January 2022 and drilled through both the Upper Basin Floor Fan ("UBFF") and Lower Basin Floor Fan ("LBFF") target horizons, encountering approximately 1,160 gross feet of hydrocarbon bearing reservoir across both horizons. Theta West #1 is some 1,500 feet structurally higher (updip) from the Talitha #A well, 10.5 miles to the southeast.

Shortly into testing and before the well had 'cleaned up', Theta West #1 was suspended due to the arrival of a major storm, as is standard practise in the Arctic during severe weather conditions, halting operations, transportation and resupply to the camp. Prior to the well being shut-in, it well flowed high quality 35.5 to

38.5 API gravity light oil at rates that averaged 57 barrels of oil per day ("BOPD") with peak rates exceeding 100 BOPD over the test period. On the final day prior to shut-in, flow rates averaged 59 BOPD. At that time only circa 40% of the stimulation fluid was recovered, significantly less than usually needed to assess the ultimate flow rate potential. Notwithstanding, the Company was greatly encouraged by the results, achieving the well's primary objectives of (i) confirming the presence of high quality, light oil and (ii) confirming the movability of that oil.

Importantly, the samples analysed to date by AHS/Baker Hughes, contracted to undertake Volatiles Analysis Service ("VAS") work, confirmed the presence of light oil within the UBFF and the LBFF, consistent with the Logging While Drilling and flow test data.

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STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

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Theta West is a giant basin floor fan (BFF) system and is now confirmed to span more than the 10.5 miles from Talitha #A to Theta West #1. The Company estimated a pre-drill resource of 12.1 billion barrels of OIP and a P50 Contingent Resource (Recoverable) of 1.41 billion barrels of oil at Theta West. This estimate will be reviewed and updated in due course after a more detailed evaluation.

At the time of writing the well remains shut-in, with 31 people on location awaiting a sufficient weather break with the objective of resuming operations in order to maximise data gathering prior to plugging and abandoning the well at the end of the season. However, given the length of time to reposition additional personnel for testing, resupply the camp, dig out and re-certify all the equipment buried by the storm, the Company is not confident weather conditions will allow sufficient time to allow for a thorough testing operation and to allow for plugging and abandonment the well and packing up the camp prior to the onset of Spring weather. Accordingly, the Company believes it prudent to commence demobilizing the equipment and camp and to plug and abandon the well. The Company estimates it would require up to three weeks of good weather to undertake satisfactory testing in accordance with best practise engineering, environmental, health and safety guidelines and is not confident this is possible prior to the onset of Spring.

Notwithstanding, the Company has collected sufficient data during the programme to confirm its pre-drill estimates of reservoir quality and the presence of light, moveable oil in the Basin Floor Fan.

Theta West represents a major success for Pantheon and a major opportunity for Pantheon to pursue the appraisal and potential development of what the Company considers a truly world class project in an excellent location.

Pantheon plans to re-enter Talitha #A next season to test the Shelf Margin Deltaic zone and to drill another appraisal well at its Theta West BFF discovery.

Testing of Talitha oil zones Post Period End

The Talitha #A vertical test well was drilled in 2021 penetrating several oil zones which included the Shelf Margin Deltaic sequence, the Slope Fan System, the Basin Floor Fan, as well as the deeper and independent Kuparuk formation.

Due to weather related time constraints, the Kuparuk formation was the only zone tested in 2021. Therefore, testing of all other zones at Talitha #A became a subject of the 2022 season. The primary objective of testing of the shallower zones was to determine (i) the quality of oil; and (ii) the moveability of this oil through the formation. In contrast to vertical test wells, future development wells will be drilled horizontally and stimulated with multiple stage fracs, meaning that flow rates are expected to be many times higher than the flow rates in vertical test wells.

Lower Basin Floor Fan

The first test was conducted on the Lower Basin Floor Fan ("LBFF"). Three intervals were individually stimulated and flow tested, producing high quality c. 35 to 39 degree API oil and averaging BOPD over a three day test period. On the final day of testing the well was flowing at a sustained rate of approximately 40 BOPD. Encouragingly, the bottom hole pressure is near to the reservoir pressure, thus providing an indication of the production potential of this portion of the oil accumulation, which is at the distal limits of the field. Management considers this to be a great result for Pantheon, confirming (i) the presence of oil, (ii) that the oil was high quality light oil, and (iii) that the oil is movable.

Slope Fan System

Testing operations on the Slope Fan System ("SFS"), which is immediately above the BFF, involved perforating two intervals within two distinct c. 50 foot ("ft") sand bodies or 'lobes'. The two intervals were stimulated and flow tested together, producing high quality c. 35 to 38 degree API oil and averaged 45 BOPD over a three day test period.

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STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

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On the final day of testing, the well was flowing at a sustained rate of approximately 32 BOPD from the combined perforations. This is the first indication of producible oil in the Slope Fan System on Pantheon's acreage and has significant implications for future resource and recoverable oil estimates. The two SFS lobes are in two distinct trapping systems with very good reservoir properties. The Company will provide more information on the SFS to shareholders in due course, once additional analysis has been undertaken.

Shelf Margin Deltaic

The final test of the shallowest zone, the Shelf Margin Deltaic ("SMD") horizon, was suspended due to blockages in the well bore. The well was perforated in the SMD and was successfully fracture stimulated. Immediately after the fracture stimulation, the test was suspended due to a blizzard on the North Slope which shut down all operations for health and safety reasons. Once flow testing recommenced, the well stopped flowing after a short period of time. At that time, only 45% of the fracture fluid was recovered with no formation water and small amounts of light high quality 34 degree API oil. Other than the small amounts of oil, no reservoir fluids were produced.

The consensus among the Company and external consultants is that there is a blockage preventing any additional reservoir fluid from entering the well bore. Based on all the data, which includes a full suite of logs, sidewall cores, extensive VAS work undertaken by AHS/Baker Hughes over the past 12 months, and the testing of the lower zones this year, the Company's expectation for the SMD is that it should yield better results than the two lower zones already tested; the Basin Floor Fan and Slope Fan System horizons, where the Company has achieved excellent results.

Regardless of the operational challenges, the Company believes the potential of the SMD is undiminished and it plans further operations on the SMD at Talitha next season. Additionally, the SMD will be encountered during drilling of Alkaid #2 mid-2022, where additional information will be gathered. Pantheon interprets that the SMD extends across the Alkaid project as it extends southeast across the Dalton Highway. This significantly increases the resource potential near export infrastructure.

Despite the blockage encountered in the SMD, the Talitha well has been a great success for the Company, confirming the presence of movable, high quality light oil in both the Slope Fan System and the Basin Floor Fan, which has very significant implications for Pantheon's acreage.

The discovery of oil in these formations enhances the prospectivity of other adjoining potential oil- bearing structures that will form part of a future drilling programme.

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Financial & Corporate

The interim results show a loss for the period of $4.4m (2020: $3.0m) which was higher than the previous year largely as a result of a $2.0m one-offnon-cash accounting charge relating to the issuance of share options and non-cash (interest and 'mark to market') charges of $0.8m relating to the issuance of the $55 million Convertible Bonds in December 2021.

At 31 December 2021, cash and cash equivalents amounted to $92.7m (2020: $29.8m). Cash and cash equivalents as 30 March 2022 was $72m.

In December 2021, Pantheon raised approximately $96 million which comprised $55 million through the issuance of unsecured convertible bonds and $41m in equity through the placing of 47,637,583 new Ordinary Shares at a price of 65 pence per Ordinary Share, a 110% premium to the previous fundraising price.

Subsequent to year end the Company the principal remaining on the Convertible Bonds has been reduced from $55 million to $50.35 million.

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STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

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Other

Overall, the winter 2022 season has been one of tremendous achievement for Pantheon, with high quality, light oil being confirmed in all targeted horizons, and the confirmation of what the Company believes to be a material discovery spanning over 10.5 miles from Talitha #A to Theta West #1. Every targeted zone confirmed the presence of high quality, light oil and every targeted horizon confirmed the movability of that oil. Whilst operations were impacted by weather and operational issues, these do not diminish the significance of the Group's achievements this winter.

Pantheon intends to host a webinar in late April to discuss in greater detail the conclusions of what has been a period of great achievement for the Company. Immediately thereafter the Company will be gearing up for Alkaid #2, intended to spud in July 2022 adjacent to the Dalton Highway and Trans Alaska Pipeline System.

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