(Alliance News) - Pantheon Resources PLC on Tuesday reported a swing to profit in 2019 due to a gain of more than USD100 million on its Great Bear acquisitions.
Pantheon acquired both Great Bear Petroleum Ventures I LLC and Great Bear Petroleum Ventures II LLC in January 2019 for a combined total of USD47.8 million, USD6.1 million in cash and the rest in shares and warrants.
Having conducted a fair value assessment of the purchase, a USD100.8 million bargain purchase gain was recorded and led to a USD16.7 million pretax profit versus an USD8.8 million loss the year before. No bargain purchase gain was recorded the prior year.
However, the company's operating loss - which did not include the bargain purchase gain - deepened to USD55.3 million from USD8.8 million. This was due to an array of impairments and a 27% reduction in revenue to USD724,589.
Pantheon incurred a USD34.1 million impairment on exploration and evaluation assets versus just USD6.8 million the year before, and a USD13.1 million impairment on developed oil and gas assets versus none in 2018.
Looking ahead, Pantheon said its farm-out process in Alaska is underway, the aim being "to secure a farm-out partner in order to begin drilling this year with first production shortly thereafter".
Chief Executive Jay Cheatham said: "As evidenced by the multitude of highlights above, this has been an extraordinary year for Pantheon. Anchored by the acquisition of Great Bear, Pantheon is positioned to potentially become a major North Slope producer. This is a result of exemplary work on the part of all the Pantheon employees and consultants.
"With a handful of personnel we have the opportunity to unlock great value for stakeholders. The Lee Keeling independent expert report has solidified our belief in our many projects on the North Slope. 2020 promises to be our year."
Shares in Pantheon were suspended in January pending publication of audited annual results. This suspension has yet to be lifted.
By Anna Farley; annafarley@alliancenews.com
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Pantheon Res (PANR)