Pantheon Resources plc to provide the following operational update: Alkaid #2 - Operational Update: Production testing operations at Alkaid #2 have commenced with the well in the clean-up phase and showing positive early indications of oil production from the reservoir. During this clean-up phase, in addition to the fluid production, the strong flow back has yielded frac sand production higher than expected, which is not uncommon in similar completion procedures. The Alkaid #2 well is being shut in as part of the planned procedure to transition from temporary flow back facilities to larger permanent facilities, and a coiled tubing unit will be used to clean out the wellbore.

Additionally, Pantheon will undertake a pressure build-up operation by placing a pressure "bomb" in the production packer and allowing formation pressure to increase for several days. This will allow for analysis of multiple reservoir parameters and is a standard reservoir engineering analytical tool. The operations to date have recovered approximately 10% of the frac fluid used, with oil cuts averaging from 8% to 12%.

Typically, a better indication of ultimate production performance can be ascertained after recovering over 40% of the frac fluid, which the Company expects to achieve over the coming weeks. Alkaid #2 has produced initial fluid flow with rates in the thousands of barrels per day, including a strong sand production response which the Company will address to ensure sand is not restricting the wellbore. Pantheon is awaiting delivery of a coiled tubing unit to clean out the well bore prior to recommencement of flow test operations.