TIDMPANR
RNS Number : 6863E
Pantheon Resources PLC
22 October 2018
22 October, 2018
Pantheon Resources plc
Corporate update
Pantheon Resources plc ("Pantheon" or "the Company"), the
AIM-quoted oil and gas exploration company with a 50% - 75% working
interest in several conventional project areas in Tyler and Polk
Counties, onshore East Texas provides the following update.
Directorate change
Pantheon announces that John Walmsley has decided to retire from
his role as Chairman of the Company at the Company's forthcoming
Annual General Meeting, scheduled for December 2018. Mr Walmsley
has served on the Board of Pantheon for 11 years and has agreed to
continue with the Company in the role of Non-Executive
Director.
Pantheon is also delighted to announce that Phillip Gobe,
currently Non-Executive Director, has accepted the role of
Chairman. Mr Gobe's appointment as Chairman reflects the Board's
determination to commercialise the geological potential of the East
Texas assets. Mr Gobe's extensive industry, operating and
commercial experience ideally position him to lead the Company into
a new era, as it works towards full control, ownership and
operatorship of its assets in Polk and Tyler Counties.
Mr Gobe, who joined the Board of Pantheon in December 2016, is
based in Texas USA and has over 40 years' experience in the oil and
gas industry, onshore and offshore USA. He is currently a
Non-Executive Director and Chairman of the Compensation and
Leadership Development Committee of the S&P 500 company,
Pioneer Natural Resources, a $28.4bn Texas-based independent
exploration and production company focused on onshore
unconventional oil and gas resource and production growth in the
Permian basin and Eagle Ford shale. Mr Gobe is also the Lead
Director and Chairman of the nomination and compensation committee
of Scientific Drilling International Inc, the fifth largest
provider of directional drilling and measurement equipment and
operational services. Mr Gobe spent the majority of his early
career with Atlantic Richfield Company (ARCO) in various roles and
capacities in drilling, operations, human resources, health and
safety and senior management. This included a role as operations
manager of Prudhoe Bay in Alaska, ARCO's largest and most valuable
asset, and the largest oil field in North American history.
Jay Cheatham, CEO, said, "On behalf of the Board and all
shareholders, I would like to thank John for his tremendous and
tireless contribution to Pantheon to date, as both Non-Executive
director and then Chairman, and we look forward to benefitting from
his industry and commercial experience as he continues on the Board
of the Company.
"We are delighted that Phillip, with his deep industry,
operating and commercial experience in North America, has accepted
the role of Chairman to lead the Company in its important next
phase. As I have stated repeatedly, I have absolute belief in the
geological potential of our project, and believe the issues
encountered to date have been primarily operational in nature.
Phillip's appointment, along with the appointments of the experts
at Sierra Hamilton and more recently Prof. Dr Van Oort, directly
address this matter and represent a definitive step in Pantheon's
history, heralding a new era where Pantheon moves towards assuming
operatorship and decision making control over our project."
Tyler County pipeline
Pantheon is pleased to announce that work on the 2 1/2 mile
Smith gathering line in East Texas is nearly complete. It is
anticipated that the pipeline connecting the VOS #1 well and the
Enterprise gas gathering and processing system in Tyler County will
be hooked up ready for first production by the end of October 2018.
This work has continued despite heavy rainfall and localized
flooding in the area. Both the Pantheon and Enterprise crews are to
be commended for their work under difficult operating conditions.
Based on the latest available information and assuming current
commodity prices and tested flow rates, the Company estimates that
the cash flow generated by Pantheon from VOS #1 could be sufficient
to fund Pantheon and Vision's combined overheads and G&A
following the initial commissioning operations.
Jay Cheatham, CEO, added, "I am very pleased to be able to
report on the progress of this gathering pipe line. We ended up
boring significantly more footage than originally estimated, which
could have significantly delayed start up, but the crews worked
double shifts to overcome that and the significant impact of the
rain. Since the VOS#1 well has been shut in, except for short term
testing, we will bring it on slowly and allow it to clean up
gradually. Once fully operational we will report on the flow rates,
production and revenue. We will post photographs on our website
showing the work associated with the preparation and installation
of the connecting pipeline system in Tyler County."
Share Issue and Total Voting Rights
The Company announces that it has issued 150,000 new ordinary
shares in lieu of cash, and at their election, to Align Research
for services provided to the Company with respect to the
commissioning of a future equity research report (which will be
available for distribution to all investors) as well as ongoing
coverage on the Company. Further information on Align Research is
available at: http://www.alignresearch.co.uk/about-us/
Application has been made to admit the new ordinary shares to
trading on AIM and it is expected that admission will become
effective on 25 October 2018.
Following Admission, the Company's issued share capital will
comprise 237,486,555 Ordinary Shares. No Ordinary Shares are held
in treasury. The figure of 237,486,555 Ordinary Shares may be used
by shareholders as the denominator for the calculations by which
they will determine if they are required to notify their interest
in, or a change to their interest in, the Company under the
Financial Conduct Authority's Disclosure Guidance and Transparency
Rules.
Update on Vision and Farm-in Negotiations
The Board is continuing to work very closely with the Estate of
the late Bobby Gray and Kaiser Francis Oil Company as Pantheon
moves towards increasing its working interest in the project to
100% and thereby assuming full control and operatorship of the East
Texas asset. Much progress has been made and the highly complex
structuring and legal work associated with acquiring the interests
is well advanced. The Board looks forward to updating shareholders
as soon as possible.
Pantheon intends to assume full control of the East Texas assets
before concluding any farm-out. The Board confirms there are a
number of parties in negotiations where the objective is for the
farm-in partner to provide funding (and possibly operatorship if
appropriate) for drilling operations in exchange for a working
interest in a particular well or project. The Company aims to be in
a position to execute a farm-in agreement following the completion
of the intended legal transfer that grants Pantheon full control of
the East Texas assets. Announcements will be made as
appropriate.
-Ends -
Further information:
+44 20 7484
Pantheon Resources plc 5361
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate
Development
Stifel Nicolaus Europe Limited (Nominated +44 20 7710
Adviser and broker) 7600
Callum Stewart
Ashton Clanfield
Nicholas Rhodes
+44 20 3727
FTI Consulting 1000
Ben Brewerton
For further information on Pantheon Resources plc, see the
website at: www.pantheonresources.com
The information contained within this RNS is considered to be
inside information prior to its release.
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) is incorporated into, or forms part of, this
announcement.
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END
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