RE: RNS14 Jun 2024 07:30
Pantheon Resources PLC Quarterly Bond, Private Placing & Funding Strategy
Source: RNS Regulatory News
RNS Number : 4073S
Pantheon Resources PLC
14 June 2024
Logo Description automatically generated
14 June 2024
Pantheon Resources plc
Quarterly Repayment of Unsecured Convertible Bonds, Private Placement and Funding Strategy Update
Pantheon Resources plc (AIM: PANR) ("Pantheon" or the "Company"), the oil and gas company with a 100% working interest in the Kodiak and Ahpun fields is pleased to provide the following update:
Highlights:
· Quarterly Bond Payment
o The Company has elected to make the quarterly principal and interest payment of US$2.72 million through the issuance of 7,471,153 new ordinary shares (the "Bond Shares") at a price of US$0.364 per share.
· Private Placement
o Private placement of approximately US$3.36 million to two existing long term shareholders through the issuance of 9,230,080 new ordinary shares (the "Placement Shares") at a price of US$0.364 per share to provide additional working capital, (the "Placement"), and to increase the Company's flexibility in advancing funding discussions per the overall strategy outlined below.
· Funding Strategy
o Long term funding - the Gas Sales Precedent Agreement ("GSPA"), executed on 5 June 2024 opens a potential path to funding of post Ahpun FID expenditures without further equity dilution.
o Interim funding - the Company estimates the funding up until the point of Ahpun FID (referred to above) is in the range US$60 - US$85 million. This includes costs required to complete the Environmental Impact Statement ("EIS"), G&A, US IPO preparation costs, hot-tap into the TAPS pipeline, as well as the cost of drilling and testing the planned Megrez-1 well to assess the Ahpun East project area which the Company estimates to contain a Prospective Resource of c. 609 million barrels ("mmbbl") of marketable liquids. At the upper end of the range this would also include the cost of drilling and testing an additional Ahpun appraisal well if required.
o Funding options being presently under consideration include a suite of alternatives including farm-out, equity, debt, hybrid and a US listing targeted for 2025. The Company believes a US listing is an important step into providing greater access to the US institutional investment community, and to enhance market depth and liquidity in the Company's shares.
· Webinar Planned
o Update on corporate strategy following will be provided to shareholder in a webinar later this month. Precise timing of the webinar to be confirmed in due course.
David Hobbs, Executive Chairman, said: "A year ago, Pantheon embarked on a refreshed strategy to drive progress towards financial self-sufficiency as quickly as possible and at minimum possible value dilution to existing shareholders. The progress of the past twelve months - ind