19
November 2024
Pantheon Resources
plc
Quarterly Repayment of
Unsecured Convertible Bonds and Private Placement
Pantheon Resources plc (AIM:PANR, OTCQX: PTHRF)
("Pantheon" or the "Company"), an oil and gas
company developing the Kodiak and Ahpun oil fields in close
proximity to pipeline and transportation infrastructure on Alaska's
North Slope, announces that it has issued 9,108,756 new ordinary
shares (the "New Ordinary Shares") in the Company via a private
placement with the convertible bondholders (the "Private
Placement") at an issue price of US$0.2878 (£0.2266) per ordinary
share (the "Issue Price") for total proceeds of US$2.622
million.
The Issue Price represents a 10 per
cent. discount to the 10-day VWAP of the ordinary shares up to and
including 18 November 2024 (being the latest practicable date prior
to the release of this Announcement).
The total proceeds will be used to
settle, in cash, (i) the quarterly principal repayment of US$2.45
million and (ii) the quarterly interest payment of US$0.1715
million (collectively, the "Quarterly Repayment") in respect of its
senior unsecured convertible bonds due June 2026 (the "Convertible
Bonds"). The Quarterly Repayment will be made on 13 December 2024
and will be settled in its entirety in cash through the proceeds
from Private Placement. Accordingly, the result of the Private
Placement and subsequent Quarterly Repayment will be cash-neutral
for the Company.
After settlement of the Quarterly
Repayment, the principal remaining under the Convertible Bond
will be reduced by US$2.45 million to US$14.7
million.
Rationale for Private Placement
The rationale for the Private
Placement is to avoid a situation where Pantheon is potentially
unable to elect to issue shares as settlement for the Quarterly
Repayment due to being in a closed period in relation to the
drilling of the Megrez-1 well. It is possible that the Megrez-1
well could be receiving potentially price sensitive information at
the time that the Quarterly Repayment decision is made, and to
avoid this situation the Company is electing to issue the New
Ordinary Shares now, with the proceeds to be applied towards the
settlement for the December Quarterly Repayment.
Admission and Total Voting Rights
Application is being made to the
London Stock Exchange plc for the New Ordinary Shares to be
admitted to trading on AIM. It is expected that admission will
become effective and that dealings in the New Ordinary Shares on
AIM will commence at 8:00 a.m. on or around 22 November 2024
("Admission").
Immediately following Admission, the
Company's enlarged issued share capital admitted to trading on AIM
will consist of 1,139,369,391
ordinary shares, with each share carrying the
right to one vote. The Company does not hold any Ordinary
Shares in treasury. The total voting rights figure
of 1,139,369,391 may be used by shareholders (and others with
notification obligations) as the denominator for the calculations
by which they will determine whether they are required to notify
their interest in, or a change to their interest in, the Company
under the Disclosure Guidance and Transparency Rules.
David Hobbs, Executive Chairman of Pantheon Resources,
said: "This was a prudent decision from
a governance point of view, made at a time well before Megrez-1
reaches any targeted horizons. At the current time the well has set
surface casing and drilling will commence once all safety protocols
have been completed."
For further information, please
contact:
UK
Corporate and Investor Relations Contact
Pantheon Resources plc
Justin Hondris
+44 20 7484 5361
contact@pantheonresources.com
Nominated Adviser and Broker
Canaccord Genuity Limited
Henry Fitzgerald-O'Connor, James Asensio, Charlie Hammond
+44 20 7523 8000
Public Relations Contact
BlytheRay
Tim Blythe, Megan Ray, Matthew Bowld
+44 20 7138 3204
U.S. Investor Relations Contact
MZ Group
Lucas Zimmerman, Ian Scargill
+1 949 259 4987
PTHRF@mzgroup.us
About Pantheon
Resources
Pantheon Resources plc is an AIM
listed Oil & Gas company focused on developing its 100% owned
Ahpun and Kodiak fields located on State of Alaska land on the
North Slope, onshore USA. Independently certified best estimate
contingent recoverable resources attributable to these projects
currently total c. 1.6 billion barrels of ANS crude and 6.6 Tcf
(trillion cubic feet) of associated natural gas. The Company owns
100% working interest in c. 259,000 acres.
Pantheon's stated objective is to
demonstrate sustainable market recognition of a value of $5-$10/bbl
of recoverable resources by end 2028. This is based on bringing the
Ahpun field forward to FID and producing into the TAPS main oil
line (ANS crude) by the end of 2028. The Gas Sales Precedent
Agreement signed with AGDC (Alaska Gasline Development Corporation)
provides the potential for Pantheon's natural gas to be produced
into the proposed 807 mile pipeline from the North Slope to
Southcentral Alaska during 2029. Once the Company achieves
financial self-sufficiency, it will apply the resultant cashflows
to support the FID on the Kodiak field planned, subject to
regulatory approvals, targeted by the end of 2028 or early
2029.
A major differentiator to other ANS
projects is the close proximity to existing roads and pipelines
which offers a significant competitive advantage to Pantheon,
allowing for shorter development timeframes, materially lower
infrastructure costs and the ability to support the development
with a significantly lower pre-cashflow funding requirement than is
typical in Alaska. Furthermore, the low CO2 content of the
associated gas allows export into the planned natural gas pipeline
from the North Slope to Southcentral Alaska without significant
pre-treatment.
The Company's project portfolio has
been endorsed by world renowned experts. Netherland, Sewell &
Associates estimate a 2C contingent recoverable resource in the
Kodiak project that total 1,208 mmbbl (million barrels) of ANS
crude and 5,396 bcf (billion cubic feet) of natural gas. Cawley
Gillespie & Associates estimate 2C contingent recoverable
resources for Ahpun's western topset horizons at 282 mmbbl of ANS
crude and 803 bcf of natural gas. Lee Keeling & Associates
estimated possible reserves and 2C contingent recoverable resources
totalling 79 mmbbl of ANS crude and 424 bcf natural gas.
For more information visit
www.pantheonresources.com.
