As the Smackover (SMK) Lithium (Li) play picks up steam we need to acknowledge that from regulatory and legal standpoints, there will be significant differences between the play in South Arkansas and in East Texas.  Very soon we expect to know more about royalty provisions and regulatory guidelines.  From past experience with dissimilarities between Texas and Louisiana mineral laws and regulatory statutes governing the Haynesville Shale, we hope to limit confusion and make it easier to access the information that will be pertinent to land and mineral owners.

In order to help members and quests to the website and to avoid confusion, we will start two new discussions, one for Texas and one for Arkansas.  There is an abundance of information in the original SMK Lithium discussion threads and members may want to click on them and then save them to their computer bookmarks/favorites to be able to access them in the future as they will eventually rotate off the main page.  After 24 hours, comments in those discussions will be closed but the replies will remain available in the website archive.   Archived discussions are available by using the search box in the upper right corner of all website pages.

GoHaynesvilleShale.com was one of the first resources for mineral owners to learn basics, share information and generally provide a place where mineral owners could become more informed managers of their mineral assets in the age of the Internet.  The website is pleased to continue to provide those services to those who will benefit from the SMK Lithium Play.  Please keep in mind two things.  You are a key part of the on the ground intelligence network by letting your friends and neighbors know about GoHaynesvilleShale.com and encouraging them to participate in site discussions.  And since GoHaynesvilleShale.com is free for all to use, please consider a donation to help keep the website online.

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Nice video - but (as expected), no references to heterogeneity and variability in the Smackover section as well as lithium concentrations.

It doesn't help that they included video showing "poison gas" and H2S signs at well sites.

People will react negatively to that.

Prediction - some people will eventually rebel against the idea of injecting all the processed water back into the ground. They will reference Permian Basin, aquifer issues and earthquakes.

Not valid reasons - but expect it to come.

Rock Man, I agree. Here are some things that members should keep in mind. The age of media reporters with even a basic understanding of oil and gas operations and subsurface geology is long over. We now get reports like this one from reporters with no background nor ability to ask the right questions and extract the detail that land/mineral owners can use. Older members can likely remember when this wasn't the case. That was back in decades where local, independent oil companies were abundant, local newspapers carried weekly oil and gas columns and many more people than today worked in the industry. Now what you will get it is a recitation of whatever the industry PR people provide in presentations or press releases.

H2S, though likely unintentionally introduced in the article, is a real concern and any lease for Smackover brine production should address it. Aquifer and seismic concerns from injecting brine back into the subsurface are the providence of state regulators. That is pretty straight forward and predictable. There are safe ways to manage both of those issues. The question is whether those regulators have the authority and political backing to do their job. Far too often corners are cut at the behest of the industry.

Equinor buys 45% stake in two US lithium projects

By Reuters  May 8, 2024

 Equinor on Wednesday said it has entered an agreement with Standard Lithium Limited to acquire a 45% stake in lithium projects located in Southwest Arkansas and East Texas.

Equinor will initially compensate Standard Lithium $30 million and cover project expenses up to $33 million. Potential future milestones could see Equinor pay an additional $70 million in aggregate to Standard Lithium if a final investment decision is taken, the release added.

Standard Lithium will retain operatorship, with Equinor contributing its experience in subsurface operations.

"We see sustainably produced lithium as an enabler in the energy transition," as this partnership allows Equinor to enter the lithium space while focusing on environmentally friendly Direct Lithium Extraction (DLE)technologies, Equinor senior vice president Morten Halleraker said.

President Joe Biden's landmark climate change law created big subsidies for producers of minerals like lithium, a key material for electric vehicles and battery storate, and copper that are needed in equipment like batteries and solar panels.

Equinor website / massive company

The max of $133 million is peanuts for them.\

Equinor: energizing the world, empowering people. - Equinor

I previously (April 27) posted an article in this thread titled, "Tetra Technologies outlines bromine-lithium plant plans for Lewisville audience" in which Tim Moeller, senior vice president for Global Supply Chain-Chemicals, made the following statement - "Moeller anticipates that the actual number of well pads will be small. Horizonal drilling technology will allow for one well pad to extract brine from many locations within the unit."  The emphasis added was my own because I had assumed that the brine supply wells would be vertical wells, not horizontal.  This was the first mention of horizontal wells so I thought it was significant but also thought it didn't sound plausible.  So where do you go when you have a question regarding subsurface geology and well designs?  That's right, Rock Man.  I put the question to him and here is his reply.  Thanks to Rock Man for clearing this up.  Prior articles have mentioned larger diameter wellbores.

Hz wells in the Smackover makes no sense - SMK reservoirs will give up lots of water easily so extra $$$ for longer laterals in the Smackover isn't needed
To get more fluid, one could just drill larger diameter vertical wells to allow for more flow
Set 7" to 8.625" casing to the Smackover instead of the normal 5.5" casing
Some more cost but nothing like Hz drilling 

Pantera taps world-leading oilfield tech company to define the Smackover’s lithium brine potential

  • SLB engaged to identify potential of Pantera’s Smackover lithium brines
  • Leading subsurface technology company to develop 3D static geological model
  • Model will identify optimal well locations for future well planning and designs

 

Special Report: Pantera Minerals is bringing out the big guns with the engagement of world leading subsurface technology company SLB to identify the potential of its Smackover lithium brine project ahead of drilling the first well.

SLB is the world’s leading subsurface expertise and technology company in the oilfield sector, which would by itself translate well to exploring for lithium brine projects given the strong similarity in exploration for the two commodities.

The contractor has also expanded its domain expertise in subsurface and sustainable lithium production technology over the years, making it perfectly suited to supporting Pantera Minerals’ (ASX:PFE) push to explore its project, which covers 18,570 acres of the Smackover Formation in Arkansas.

The Smackover’s prospectivity is best demonstrated by the quality of resource majors it has attracted with big names such as ExxonMobil, Albemarle, Standard Lithium and Tetra all developing potentially multi-billion dollar projects to supply the burgeoning lithium market.

Arkansas itself benefits from a well-established oil and gas industry, exceptional logistics and transportation links, and a proactive, supportive state government.

PFE has already defined an exploration target of between 436,000-2.96Mt of contained LCE within its Superbird project area and has identified multiple re-entry wells within its footprint.

Pantera’s acreage is right next to ExxonMobil’s ground. Pic: Pantera Minerals

 Leveraging leading expertise for lithium brine exploration

SLB will leverage its advanced subsurface technology and expertise to advance the already identified leads and multiple re-entry wells into drill-ready prospects.

It will use acquired 2D seismic, gravity and magnetic data to help define the extent of the Upper Smackover Formation and the location of faults for use in the 3D static modelling, which will identify optimal well locations for future well planning and designs.

This model will also be used by PFE for resource estimation ahead of maiden drilling and will be updated to a JORC-compliant resource estimation model once lithium brine geochemistry and porosity/permeability data is obtained from a well re-entry program.

“We are extremely excited to partner with SLB (NYSE: SLB), a global technology company, to complete and enhance sub-surface work in advance of our maiden drilling program,” executive chairman Barnaby Egerton-Warburton said.

“Our project already has an exploration target with a grade range between 225 to 450 mg/L with a median grade value of 338 mg/L and we hope to further refine and enhance that as we move through to the initial exploration phase.

“SLB’s extensive experience and proven track-record in subsurface analysis, reservoir and aquifer management, subsurface-surface technology integration, and operational performance will provide Pantera with an enhanced understanding of subsurface characteristics to inform better decision making.

“With the Arkansas Smackover boasting some of the highest-grade lithium brines globally, supporting oilfield services and infrastructure are now being established for America’s emerging lithium-brine industry, which includes Albemarle, Standard Lithium, Exxon Mobil and now Norway’s Equinor.”

 Future activity

PFE continues to lease mineral claims within the Daytona Exclusive Abstract Area and will carry out a well re-entry and brine sampling program to obtain brine lithium grade and brine chemistry as well as core samples for porosity assessment and geophysical/petrophysical data.

Additionally, it will carry out new well drilling and brine sampling to assist in defining a JORC lithium brine resource.

 This article was developed in collaboration with Pantera Minerals, a Stockhead advertiser at the time of publishing.  

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Nice write up but all this really works out to be is a normal subsurface evaluation - no different than what has been done by O&G companies for decades.

Tying in all well control to seismic to map key horizons with focus on Smackover porosity / reservoir zones.

Utilizing seismic to map structure and possibly reservoir thickness (difficult to do at these depths in carbonate zones).

Mapping thickness of reservoir and storage capacity - in this case, formation water volumes vs O&G volumes.

As I said, O&G companies have been doing this for years - without having to pull in SLB or other third-party groups. SLB will get paid for all this work regardless of the results of the project as to lithium extraction.

Pantera Minerals sets course for Lafayette County brine leases

magnoliareporter.com  4/15/2024

Pantera Minerals Limited has announced near term work plans to define the subsurface geology and reservoir characteristics of the Pantera Lithium Brine Project in Lafayette County.

The engagement of SLB to develop a 3D Static Geological Model is a critical step in de-risking and optimizing the exploration planning and workflow and project development, Perth, Australia-based Pantera said in a statement.

In February 2024, Pantera formally acquired Daytona Lithium Pty Ltd, the holder of the Pantera Li Brine Project brine leases in Lafayette County.

The strategically positioned Pantera Li Brine Project is situated in the Smackover Formation in Southwest Arkansas, a renowned high-grade lithium brine formation. The area is home to various lithium brine explorers and producers, including industry leaders such as Exxon Mobil, Standard Lithium, Tetra Technologies and Albemarle Corporation.

Since Pantera’s initial investment, the Pantera Li Brine Project has increased materially to now cover a land position of over 18,570 leased acres. The property is west of ExxonMobil’s leases in southern Lafayette County.

The 3D Static Geological Model will be defined over a 40,000-acre Area of Interest that covers the extent of the 18,570 acres of mineral claims that Daytona Lithium currently holds.

A detailed gathering and review of existing data (well data, purchased 2D seismic, gravity, magnetics and well production data) will be performed to establish a baseline understanding of the subsurface geology and existing brine resource within the Smackover Formation within the AOI. Existing raster logs within the AOI will be digitized for use in the model. Reconstruction and well log harmonization of missing log data will be performed at this time. Historic production data in the area will be studied to understand porosity and permeability variations within the AOI. Numerous dry hydrocarbon holes and plugged wells are located within the area. SLB will download and study all available reports/data to review the suitability of wells for re-entry to obtain brine chemistry, geological, geophysical and petrophysical data for use in future brine resource estimation.

Consolidated digitized well data and 2D seismic data will be imported into a 3D modelling platform. A 3D grid will be generated representing the subsurface top and base of the Smackover Formation with the AOI.

Petrophysical editing of log data will be used to understand and calculate porosity of the target zones. SLB will conduct a regional study to establish porosity relationships with available sonic, gamma, and resistivity logs. Porosity logs are then required to be predicted and reconstructed from existing sets of data. A study of production data and existing core data is required to be completed to establish a relationship between permeability and porosity. After a fit-for-purpose gridding of the geological model, the properties of each cell (permeability, porosity, and lithium saturations) will be populated using the data provided by existing well controls and 2D seismic data. The 2D seismic data will undergo seismic inversion using rock properties derived from the petrophysical analysis performed on the logs and study area.

The 3D static model will be used to calculate mineral resource estimations in the AOI. This estimation will be updated with the static model as more data becomes available through drilling, sampling, and brine analysis.

Work will determine the optimal locations for initial one to three re-entry wells. This process involves reviewing around 45 wells in the AOI and correlating the wells against the 3D Static Geological Model.

Pantera’s 2024 goals are:

-- Continued mineral claim leasing with the Daytona Exclusive Abstract Area.

-- Completion of the 3D Static Geological Model.

-- Well re-entry and brine sampling program to obtain brine lithium grade and brine chemistry as well as core samples for porosity assessment and geophysical/petrophysical data.

-- New well drilling and brine sampling to assist in defining the lithium brine resourc

In Arkansas, our community ties are blossoming

exxonmobil.com

Key takeaways:

  • Community engagement is part of our new lithium business.
  • Examples include our sponsorship of this year's Blossom Festival.
  • Rooting for “Lithi-YUM,” our steak cook-off team.

In his 17 years with ExxonMobil, Remi Loiseau has worked on energy projects around the world. But last week, he was passing out steak to the crowd at the Magnolia Blossom Festival and World Championship Steak Cook-off – a lively two-day event that draws thousands each spring to the picturesque downtown of Magnolia, Arkansas.

Why? Because Remi leads our work in Arkansas to build a new lithium business and participating in the festival was an opportunity for our team to help people learn more about our plans and activity. 

It was also a blast. Remi and his colleagues enjoyed the arts and entertainment, answered questions and cheered on our team in the festival’s steak cook-off: the aptly named “Lithi-YUM.”

ExxonMobil sponsored the Blossom Festival for the first time this year – a sign of our deepening ties with communities in the southwest part of the state. That’s where we plan to produce lithium from saltwater brines deep underground – enough for about 1 million electric vehicles a year by 2030.

“Everyone here’s excited about lithium and the economic opportunities it could provide,” said Rachel Jenkins, executive director of the Magnolia-Columbia County Chamber of Commerce. “We’re happy to have folks from ExxonMobil at the Blossom Festival, pitching in to help make it a success.”

As Remi put it: “The festival’s a great example of how we don’t just work in a community…we work to become part of a community."

Other examples in Arkansas include: 

  • We created a $100,000 endowment for nonprofits that support education, public safety and quality-of-life initiatives in Lafayette and Columbia counties.
  • We delivered updates to Rotary clubs, schools, the Leadership Arkansas program and more – including a town hall in Lewisville, where we fielded questions from an audience of more than 100 community members. 
  • We sponsored a holiday toy drive that collected more than 150 toys and gift cards for children in the Magnolia area.
  • We sponsored Southern Arkansas University’s SOAR Sustainability Conference, where we shared information about our lithium activities. 

 Upgrading to snake boots 

A North Carolina native, Remi’s the father of two boys and self-described “outdoor adventurer” who loves activities like hiking, camping and rock-climbing. 

He’s enjoyed hiking through southwest Arkansas while scouting potential lithium project sites, but admits the area’s dense woods prompted a change of footwear: “I had to trade my hiking boots for snake boots!”

Meanwhile, our lithium work in Arkansas continues to progress. Our appraisal well program should be completed this summer, while our project teams continue to advance engineering and execution planning. Both are critical early steps in helping Arkansas become a global leader in the lithium industry. 

While lithium’s new for us, our goal in Arkansas is the same as it is everywhere: We seek to be a trusted partner that creates good jobs and operates in a safe and environmentally responsible fashion.

Read more about our community activities in Arkansas here.

ExxonMobil doing it the right way - winning the minds and hearts of the local populace 

Their PR department earning their keep!

From Oil Patch to EV Industry Hub: A History of the Arkansas Smackover Formation and US Lithium Production Innovation

Lithium-rush miners are flocking to Arkansas more than 100 years after an oil discovery in the Smackover Field.

 May 29, 2024 By Andrew Yule spe.org

https://jpt.spe.org/twa/from-oil-patch-to-ev-industry-hub-a-history...

A Surprising Announcement

On 1 July 1922, roughnecks discovered oil in the Smackover Field of Union County, Arkansas. At the end of an exhilarating (albeit dramatic day), a photographer captured an image of the weary, oil-coated crew. The image depicts them standing amongst the tall pines of the Southern Arkansas wilderness, which is not exactly what you picture when you think of the future capital of the American electric vehicle (EV) industry.

But ExxonMobil thinks differently. In November 2023, the company announced its acquisition of 120,000 gross acres in the Smackover Formation in southern Arkansas, stating its intention to become a leading producer of lithium, a critical metal for EV batteries and the global energy transition.

ExxonMobil’s interest in lithium isn’t necessarily surprising. While lithium is certainly different from oil, it still is an extractive, which is ExxonMobil’s specialty. In 2015, less than 30% of lithium demand was for batteries and by 2030, batteries are expected to account for 95 percent of lithium demand. According to some estimates, the demand is increasing exponentially.

In 2021, 540,000 tonnes of LCE were produced globally. By 2030, demand estimates range from 2 to 3 Mt, a four- to sixfold increase. Many predict there could be a shortfall of approximately 40,000 to 60,000 tonnes of LCE in 2025 due to potential regional shortages and intermittent delays in the near future. These delays are attributed to the time required to develop a discovery mine (roughly 10 years). Obviously, ExxonMobil is preparing to fill this gap in the market.

But, lithium in an Arkansas oil field? Yes, you heard that right. As the song by Chris Stapleton goes, “If you want to get down, you gotta get to Arkansas.” Lithium-rush miners are getting there, and fast.

Why the Smackover?

The Smackover Formation is enormous, sprawling over parts of Texas, Arkansas, Louisiana, Mississippi, Alabama, and Florida. Since the initial discovery of oil in the Smackover, over 1,000 oil wells have been drilled in approximately 600 former and currently producing oil and gas fields. While there is still oil production from the Smackover, it is no longer newsworthy compared to the vast reserves in neighboring US basins.

Thanks to the Smackover discovery, however, wildcatters serendipitously found something else: bromine-rich brine, produced alongside hydrocarbons. The bromine is recovered from the brines, and the remaining brine is reinjected back into the well. Arkansas is now the second leading producer of bromine, which is used in fire retardants, agriculture, pharmaceuticals, and certain drilling fluids.

In the 1960s, something else was discovered in the Smackover brine, particularly in brine deposits in southern Arkansas: lithium. And not just a little lithium. A lot of lithium.

Several of the Arkansas brine deposits contain over 300 mg/L of lithium in the composition. For perspective, operators must have a brine composition of at least 80 mg/L of lithium to be profitable. Interestingly, other areas within the Smackover do not necessarily have such high concentrations of lithium. Nor do neighboring formations. Though we don’t know exactly why this is, some studies suggest that the shape of the formations caused the lithium to pool together in this specific area.

Smackover formation.png The Smackover Formation spans across several states in the southern United States, including Arkansas, Louisiana, Mississippi, and Alabama.
Source: Arkansas Oil & Gas Commission.

Traditional Lithium Extraction

Traditionally, there are two major ways to extract lithium: Hard rock extraction and brine extraction.

Hard rock lithium extraction is only possible in areas that have, well, hard rock. Hard rock containing a mineral called spodumene (LiAlSi2O6) is particularly desirable as it contains the highest lithium concentration.

Unfortunately, spodumene is a miserly mineral, trapping lithium within a strong, α-monoclinic crystal structure, releasing the lithium only at great cost. To wrest the lithium from the spodumene, producers must pulverize the rock and, often, send it on a transcontinental journey to specialized processing facilities. In these factories, the spodumene is subjected to intense temperatures, in excess of 1,832°F (1,000°C), and unique and harsh chemical reactions requiring large volumes of sulfuric acid (H2SO4). The intermediate material must be further converted and purified into “usable” lithium for EV batteries. The final result is usually a measly 1 tonne of lithium (LCE) for every 8 tonnes of spodumene. All in, LCE costs from hard rock sources to final product are approximately.... The process is intensive and expensive.

The other lithium extraction method is brine. Globally, 31 Mt of lithium is estimated to be available in brine re... Unsurprisingly, most brine sources come from oil fields. In countries like Chile, Bolivia, and Argentina, this brine is stored in large lithium extraction reservoirs, also known as salars, where the sun slowly evaporates enough water to concentrate the lithium. From there, the lithium is processed into a usable product.

Screenshot 2024-05-14 at 09-51-22 Global Metals & Mining Direct Lithium Extraction A potential game changing technology - report.pdf.png Traditional pond lithium extraction method.
Source: Goldman Sachs

The average cost to produce lithium products via the traditional pond method is USD 5,580/tLCE, which is significantly m...

So why is ExxonMobil interested in the brine of Arkansas? The answer is an almost 2x margin advantage over hard-rock production. Unfortunately, as it stands now, most brine-extracted lithium is not battery-grade material and is used in other markets. To change this, either additional processes must be put in place at the production sites for improved purity, or advances must be made to increase tolerance of the impurities. Neither is an easy fix.

Direct Lithium Extraction (DLE)

So how does ExxonMobil plan to become a leading producer of lithium for EV batteries if Arkansas is a brine extraction region that does not produce the LCE necessary for batteries? According to the November 2023 press release, ExxonMobil’s plan is to use direct lithium extraction (DLE) technology to separate lithium from the brine. The lithium will then be further reacted to battery-grade material, while the brine byproduct will be reinjected back into the formation. If this process sounds familiar, it’s because it mirrors the Smackover bromine extraction process almost exactly. 

1. Produce high-brine-content water.

2. Extract desired mineral.

3. Re-inject water back into the formation.

The advantages of DLE are numerous:

  • EV-grade lithium: Compared to traditional methods, DLE offers an innovative way to improve processing costs and purification specifications, which will allow brine lithium sources to be used in EV batteries.
  • Smaller environmental footprint: DLE takes up less physical space, bypassing the need for large evaporation ponds.
  • Fast development: A new lithium mine can take 10 years to develop from first discovery to full operation. Salar ponds require roughly 2 years to produce lithium. DLE takes advantage of already existing processes, which means the 150 fields in Arkansas that are already producing and mature are more easily exploited for lithium production right away.
  • Proven technologies: DLE techniques are proven technologies. If you’ve spent any time in a chemical or analytical lab, you may have used some or all of them. Some extraction processes DLE may incorporate include adsorption columns, ion exchange, solvent extraction, and membrane separation.
  • Less energy and fewer harsh chemicals required: Following extraction, further purification and concentration of the lithium salt solution, typically LiCl, uses chemical softening and impurity removal processes that are industry standard processes for water and wastewater treatment (e.g., brackish water reverse osmosis). None of these processes are as energy-intensive as the traditional methods, nor do they require harsh chemicals.
  • Fast, local production: DLE enables lithium to be converted into battery-grade material onsite, as opposed to the hard rock extraction method, which requires lithium to be exported to distant laboratories for production.
  • Proven success: Standard Lithium has been operating an industrial-scale fully integrated DLE demonstration plant at the LANXESS South facility in Arkansas since May 2020 and has had great success producing high-purity lithium. Much of their success can be attributed to knowledge sharing from the Arkansas bromine extraction industry.
Screenshot 2024-05-14 at 09-55-16 July 2021 Corp Presentation.pdf.png Direct lithium extraction process.
Source: Standard Lithium

Will DLE in Arkansas Succeed?

Despite all the good news about DLE, it is still an expensive endeavor. Will the investment be worth it? Within their LANXESS lease parcels, Standard Lithium reports a Measured and Indicated Resource of 2.8 Mt LCE at an average lithium concentrate of 148 mg/L and Proven and Probable Reserves of 208 Kt LCE at an average concentration of 217 mg/L. Recall that conventional estimates call for a concentration of >80 mg/L to be viable. If these numbers are correct, that is extreme viability.

But does the Smackover have enough supply to support the increasing demand for EV technology?

The answer is maybe. There have been somewhat contentious debates over how much lithium actually goes into an EV battery. It seems the true amount of lithium in a battery isn’t clearly reported by manufacturers. Paul Martin has an interesting 2017 LinkedIn post that lands on ~160 g Li metal per kWh of battery power (~850 g LCE). A typical EV battery with 50 kWh capacity equates to 40 kg LCE per battery. Assuming there are 40 million vehicles on the road in 2030 (at 50 kWh/vehicle), that puts demand at 1.7 Mt LCE in 2030.

Good News, Well Timed

ExxonMobil’s news comes at an opportune time. Once the largest producer of lithium in the world, the US has steadily lost market share in lithium production for over 30..., landing it in eighth place in 2021. Whether it is oil, gas, or renewables, it is critical that the US achieves energy independence soon. Increasing lithium production will be a strong move in the right direction. ExxonMobil’s activity in the Smackover will also help to soften the blow in the predicted 2025 lithium shortage.

Screenshot 2024-05-14 at 09-58-22 Visualizing the World’s Largest Lithium Producers.png Global lithium rankings, 2022.
Source: Visual Capitalist

ExxonMobil’s partnership with Arkansas is particularly exciting, as Arkansas is one of the few states with well-established production and brine extraction. Arkansas brine laws should also offer an easy transition and avenue for producers wanting to operate in Arkansas and for other states wanting to attract local business for the development of lithium production.

Will Arkansas be the future capital of the EV revolution? There are many unpredictable variables at play, and time will tell. The Chris Stapleton song does ring true though: “What I found in the Ozark mountains I ain't ever seen. It sure does feel like you're sittin' on top of the world to me.”

For Further Reading

Firm Claims Texas Well Holds Highest Lithium Concentrations in Nort... by T. Jacobs, JPT.

Equinor Takes Ownership Stake of US Lithium Brine Projects by T. Jacobs, JPT.

Electric Rush: ExxonMobil To Drill Enough Lithium Wells To Make 1 M... by T. Jacobs, JPT.

ExxonMobil Drilling First Lithium Well in Arkansas, Aims to be a Le..., ExxonMobil.

Arkansas Smackover Projects, Standard Lithium.

How Much Lithium Is in a Li-Ion Vehicle Battery? by P. Martin.

Oil in Arkansas—The Smackover Field, Historical Marker Database.


22,000 ACRES MILESTONE ACHIEVED IN THE ARKANSAS SMACKOVER LITHIUM BRINE PLAY

ASX Announcement 6 June 2024 info@panteraminerals.com | panteraminerals.com

Pantera continues to muscle its way into America’s lithium heartland, now the

largest acreage holder outside the five established players including Exxon,

Albemarle, Tetra, Equinor and Standard Lithium.

HIGHLIGHTS

  • 3,700 new acres leased (a 20% increase on last reporting) within the core Pantera

Smackover Brine Project area, with Pantera’s total net leased acres now 22,270 and the

project rapidly approaching 25,000 acres.

  • Acres leased from several major mineral owners located in the core of the Pantera

target area.

  • The increased acreage continues to drive PFE towards a scalable project with the

Company’s conceptual estimate of one DLE production pad for every 6,500 acres based

on projects in development elsewhere, indicating the Company’s conceptual

production profile of up to four modules each producing 2,000-4,000 tpa of Lithium

Carbonate.

  • Sub-Surface program fully underway with SLB with first expected results due in four

weeks to identify optimal initial re-entry well. 2D Seismic data has been acquired.

  • Negotiations with rig company advanced for first re-entry well planned early Q3 2024.
  • Norway’s $A125 billion state-owned energy company Equinor (EQNR.NYSE) recently

entered the Smackover with an investment of up to $160 million in Standard Lithium’s

Brine projects across the Smackover.1

  • Surrounding PFE acreage to the east, north and northwest and contiguous with the

Project, Exxon Mobil (US$419 billion market cap) continues to conduct drilling

operations on their leased acres. Their strategic plan includes the construction of a

sizable lithium brine processing facility, aimed at advancing their project into full-scale

production.2

Commenting on the new leased acres, Executive Chairman Barnaby Egerton-Warburton said:

“This is an outstanding result as we continue to lease in the United States New Lithium Heartland, the Smackover Play Arkansas. Our exclusive abstract agreement continues to allow us to lease with little to no competition as our focus moves towards drilling, exploration and resource definition. I also note the further validation of the Smackover Lithium Brine Play with the entry of Norway’s Equinor, a world class leading energy company”.

Next Steps

  • Completion of initial sub-surface study by SLB - this modelling will provide Pantera with

clear drilling locations for the first re-entry and resource definition wells.

  • Re-entry of an identified well, located within the Project’s leased position, to test brine

grade, permeability, and porosity from the Smackover Formation.

  • DLE (Direct Lithium Extraction) test of re-entry well samples by multiple DLE technology

providers.

  • Continued Smackover Project growth through the acquisition of additional acreage.

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