REG - Pantheon Resources - Quarterly Repayment of Bonds and Private Placement

Pantheon ResourcesAnnouncement

19/11/2024 10:15

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RNS Number : 8073M  Pantheon Resources PLC  19 November 2024

19 November 2024

 

 

 

Pantheon Resources plc

Quarterly Repayment of Unsecured Convertible Bonds and Private Placement

Pantheon Resources plc (AIM:PANR, OTCQX: PTHRF) ("Pantheon" or the "Company"),
an oil and gas company developing the Kodiak and Ahpun oil fields in close
proximity to pipeline and transportation infrastructure on Alaska's North
Slope, announces that it has issued 9,108,756 new ordinary shares (the "New
Ordinary Shares") in the Company via a private placement with the convertible
bondholders (the "Private Placement") at an issue price of US$0.2878
(£0.2266) per ordinary share (the "Issue Price") for total proceeds of
US$2.622 million.

The Issue Price represents a 10 per cent. discount to the 10-day VWAP of the
ordinary shares up to and including 18 November 2024 (being the latest
practicable date prior to the release of this Announcement).

The total proceeds will be used to settle, in cash, (i) the quarterly
principal repayment of US$2.45 million and (ii) the quarterly interest payment
of US$0.1715 million (collectively, the "Quarterly Repayment") in respect of
its senior unsecured convertible bonds due June 2026 (the "Convertible
Bonds"). The Quarterly Repayment will be made on 13 December 2024 and will be
settled in its entirety in cash through the proceeds from Private Placement.
Accordingly, the result of the Private Placement and subsequent Quarterly
Repayment will be cash-neutral for the Company.

After settlement of the Quarterly Repayment, the principal remaining under
the Convertible Bond will be reduced by US$2.45 million to US$14.7 million.

Rationale for Private Placement

The rationale for the Private Placement is to avoid a situation where Pantheon
is potentially unable to elect to issue shares as settlement for the Quarterly
Repayment due to being in a closed period in relation to the drilling of the
Megrez-1 well. It is possible that the Megrez-1 well could be receiving
potentially price sensitive information at the time that the Quarterly
Repayment decision is made, and to avoid this situation the Company is
electing to issue the New Ordinary Shares now, with the proceeds to be applied
towards the settlement for the December Quarterly Repayment.

Admission and Total Voting Rights

Application is being made to the London Stock Exchange plc for the New
Ordinary Shares to be admitted to trading on AIM. It is expected that
admission will become effective and that dealings in the New Ordinary Shares
on AIM will commence at 8:00 a.m. on or around 22 November 2024 ("Admission").

Immediately following Admission, the Company's enlarged issued share capital
admitted to trading on AIM will consist of 1,139,369,391 ordinary
shares, with each share carrying the right to one vote. The Company does not
hold any Ordinary Shares in treasury. The total voting rights figure
of 1,139,369,391 may be used by shareholders (and others with notification
obligations) as the denominator for the calculations by which they will
determine whether they are required to notify their interest in, or a change
to their interest in, the Company under the Disclosure Guidance and
Transparency Rules.

David Hobbs, Executive Chairman of Pantheon Resources, said: "This was a
prudent decision from a governance point of view, made at a time well before
Megrez-1 reaches any targeted horizons. At the current time the well has set
surface casing and drilling will commence once all safety protocols have been
completed."

 

 

For further information, please contact:

 

UK Corporate and Investor Relations Contact
Pantheon Resources plc

Justin Hondris

+44 20 7484 5361
contact@pantheonresources.com (mailto:contact@pantheonresources.com)

 

Nominated Adviser and Broker

Canaccord Genuity Limited

Henry Fitzgerald-O'Connor, James Asensio, Charlie Hammond

+44 20 7523 8000

 

Public Relations Contact
BlytheRay

Tim Blythe, Megan Ray, Matthew Bowld

+44 20 7138 3204

 

U.S. Investor Relations Contact

MZ Group

Lucas Zimmerman, Ian Scargill

+1 949 259 4987
PTHRF@mzgroup.us (mailto:PTHRF@mzgroup.us)

About Pantheon Resources

Pantheon Resources plc is an AIM listed Oil & Gas company focused on
developing its 100% owned Ahpun and Kodiak fields located on State of Alaska
land on the North Slope, onshore USA. Independently certified best estimate
contingent recoverable resources attributable to these projects currently
total c. 1.6 billion barrels of ANS crude and 6.6 Tcf (trillion cubic feet) of
associated natural gas. The Company owns 100% working interest in c. 259,000
acres.

Pantheon's stated objective is to demonstrate sustainable market recognition
of a value of $5-$10/bbl of recoverable resources by end 2028. This is based
on bringing the Ahpun field forward to FID and producing into the TAPS main
oil line (ANS crude) by the end of 2028. The Gas Sales Precedent Agreement
signed with AGDC (Alaska Gasline Development Corporation) provides the
potential for Pantheon's natural gas to be produced into the proposed 807 mile
pipeline from the North Slope to Southcentral Alaska during 2029. Once the
Company achieves financial self-sufficiency, it will apply the resultant
cashflows to support the FID on the Kodiak field planned, subject to
regulatory approvals, targeted by the end of 2028 or early 2029.

A major differentiator to other ANS projects is the close proximity to
existing roads and pipelines which offers a significant competitive advantage
to Pantheon, allowing for shorter development timeframes, materially lower
infrastructure costs and the ability to support the development with a
significantly lower pre-cashflow funding requirement than is typical in
Alaska. Furthermore, the low CO2 content of the associated gas allows export
into the planned natural gas pipeline from the North Slope to Southcentral
Alaska without significant pre-treatment.

The Company's project portfolio has been endorsed by world renowned experts.
Netherland, Sewell & Associates estimate a 2C contingent recoverable
resource in the Kodiak project that total 1,208 mmbbl (million barrels) of ANS
crude and 5,396 bcf (billion cubic feet) of natural gas. Cawley Gillespie
& Associates estimate 2C contingent recoverable resources for Ahpun's
western topset horizons at 282 mmbbl of ANS crude and 803 bcf of natural gas.
Lee Keeling & Associates estimated possible reserves and 2C contingent
recoverable resources totalling 79 mmbbl of ANS crude and 424 bcf natural gas.

For more information visit www.pantheonresources.com
(http://www.pantheonresources.com) .

 

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