Last checked at 17 Nov 2021 07:00
17th November 2021
Pantheon Resources plc
Short term draw down facility to secure essential equipment for Alaska drilling season
Pantheon Resources plc ("Pantheon" or "the Company"), the AIM-quoted oil and gas company with a 100% working interest in a number of oil projects spanning c. 153,000 acres immediately adjacent to transportation and pipeline infrastructure on the Alaska North Slope, announces it has entered into a short term draw down facility of US$1.5 million with an existing shareholder (the "Short Term Facility").
Background to the Short Term Facility
As announced previously, Pantheon must complete either a farmout or funding in Q4 2021 to have sufficient resources for the anticipated winter 2021/2022 drilling and testing campaign and for ongoing working capital. The Company is actively engaged in negotiations for a potential farmout, as well as other options to ensure Pantheon is funded for these operations. The Company is optimistic about completing its financing objectives this quarter, in line with guidance. Naturally, there can be no guarantees of a successful outcome.
In the interim, to minimise the potential for disruption or delay to the anticipated operations, Pantheon has entered into the Short Term Facility. The facility will enable the Company to make certain prepayments to suppliers and contractors for future equipment, goods and services relating to the intended winter programme on its Alaska North Slope project(s) early enough to minimise the risk of supply chain disruption. The Short Term Facility is for a maximum of US$1.5 million, is unsecured, carries an interest rate of 10% per annum on amounts drawn down, and can be repaid in full at any time at the Company's election.
The impact of the Covid-19 pandemic on global supply chains is a well-documented phenomenon which has affected many industries globally, including the oil and gas sector. As a result, the lead times for the equipment and consumables required for the winter drilling season in Alaska have lengthened over the last 12 months. It is important that key equipment and materials can be ordered soon to minimise the potential for supply chain disruption to drilling operations.
Upcoming winter drilling campaign
The Company plans, subject to funding, an active work programme to test all untested zones of the Talitha #A well and to drill at least one other well at either Alkaid or Theta West.
The necessary permitting applications have been submitted to the Alaskan authorities in good time and the Company has lined up the contractors and supplies required to complete the operational programme in its entirety. The Board is pleased to confirm that it has, subject to funding, secured the services of the Nordic-Calista No.3 rig and crew, as previously used for the drilling and testing of Talitha #A well.
In parallel, the Company has continued its technical work to further increase our understanding of the assets ahead of the drilling campaign.
Jay Cheatham, CEO of Pantheon Resources, stated:
"In line with our previous guidance, we are working to complete our financing this quarter for our forthcoming winter programme. This Facility is a precaution against short term supply issues by ensuring we are prepared as possible for drilling and testing in the New Year. As always, we must caution that there can be no guarantees until a financing deal is signed.
I would also like to add that this past week, we have entered the MSCI Global Small Cap Index."
-Ends-
Further information:
Pantheon Resources plc | +44 20 7484 5361 |
Jay Cheatham, CEO | |
Justin Hondris, Director, Finance and Corporate Development | |
Canaccord Genuity plc (Nominated Adviser and broker) | |
Henry Fitzgerald-O'Connor, James Asensio | +44 20 7523 8000 |
Blytheweigh | |
Tim Blythe, Megan Ray, Alice McLaren, Madeleine Gordon-Foxwell | +44 20 7138 3204 |
Notes to Editors
Pantheon Resources plc is an AIM listed Oil & Gas company with 100% working interests in several large projects located on the North Slope of Alaska ("ANS"), onshore USA. A major differentiator to other ANS projects is its close proximity to transport and pipeline infrastructure. The Group's stated objective is to create material value for its stakeholders through oil exploration, appraisal and development activities in high impact, highly prospective conventional assets, in the USA; a highly established region for energy production with infrastructure, skilled personnel and low sovereign risk. All operations are onshore USA, with drilling costs materially below that of offshore wells.
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) incorporated into, or forms part of, this announcement. The information contained within this announcement is considered to be inside information prior to its release.