Pantheon Resources PLC Short term draw down facility to secure equipment (6040S)
17 November 2021 - 06:00PM
UK Regulatory
TIDMPANR
RNS Number : 6040S
Pantheon Resources PLC
17 November 2021
17(th) 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.
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