Reality catching up1 Apr 2026 14:52
A lot of shareholders seem to think it’s great that Max Easley and Michael Spencer are now in charge and that the key objective is to farm-out Kodiak asset during 2026.
I think there is a risk that investors may get very disappointed. All the very promotional director has now left, Jay Cheatham, David Hobbs, Jeremy Brest and Bob Rosenthal. They have been milking this cow for many years now, first by endless of equity raises and secondly by considerably compensation to themselves. One thing these very promotional directors avoided to do was to farm-out Pantheon assets. The message was always drill one more well to prove up more resources and get closer to commerciality. In reality most of their wells was complete failure. In any case I think there is one very important reason why the previous directors avoided to conduct a farm-out. That is, a farm-out would show what the industry thinks the asset is worth, and I think the previous directors was well aware that the value would disappoint the market. Therefore, the old directors took the decision to avoid a farm-out and instead keep milking the equity market and keep the dream alive.
Now Michael Spencer, the investor who has been milked most had enough. He replaced the last ramper on the board David Hobbs. He kept Max Easley as CEO, as he is not a ramper but instead have a proper background in the industry. They took the decision which industrially makes most sense to farm-out and bring in a partner to share the risk with. This is not necessarily the savviest decision if you are running an exploration trying to maximize the share price.
The decision to go for the farm-out instead of further equity raise also gives an indication that Michael Spencer might have had enough of putting in more money. Which is big issue if the farm-out fails to deliver.
In any case I think Pantheon will find some partner willing to farm-into Kodiak, but at terms which will be very disappointing to the shareholders. I think the stock will be sub 4-5p within the next 9 months.
Pantheon was built to sell dreams not for reality check.
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