Pantheon Res Regulatory News (PANR)

14 January, 2021

Pantheon Resources PLC

Dispute Update - East Texas

Pantheon Resources PLC ("Pantheon" or the "Company") advises that it has just been notified that Kinder Morgan Treating L.P. ("Kinder Morgan") has filed a petition against Pantheon, seeking payment of c.$3.35m with respect to the early termination of a Gas Treating Agreement entered into between Kinder Morgan and Vision Operating Company LLC ("VOC").

As previously disclosed, VOC was in dispute with third-party service provider, Kinder Morgan, over the early termination of a gas processing agreement in East Texas. VOC ceased making payments to the service provider in July 2019. Kinder Morgan subsequently issued a demand to VOC, and subsequently to Pantheon, seeking payment of a sum representing an acceleration of all future monthly payments that would have been owed from that date up until the end date of the contract. On 28 April 2020, VOC filed Chapter 7 Bankruptcy in the United States Bankruptcy Court for the Southern District of Texas Houston Division. 

Pantheon held ownership of less than 0.1% of VOC via a 66.6% interest in Vision Resources LLC which also filed Chapter 7 Bankruptcy in the United States Bankruptcy Court for the Southern District of Texas Houston Division on 28 April 2020. Pantheon was not a signatory to the gas processing agreement, is not named in the agreement, and explicitly declined to provide any financial support in relation to the agreement. Pantheon has taken legal advice on the matter and believes it has no liability to the service provider. Accordingly, Pantheon will vigorously contest all actions taken against it.

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