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Pantheon Resources To Raise GBP6.5 Million Via Share Placing

(Alliance News) - Pantheon Resources PLC on Thursday said it intends to conduct a placing and ...

Alliance News 18 July, 2019 | 5:43PM
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(Alliance News) - Pantheon Resources PLC on Thursday said it intends to conduct a placing and subscription to raise a minimum of USD6.5 million, in order for the oil and gas exploration company to continue drilling operations.

Pantheon said it intends to conduct a placing and subscription of new shares at a price of no less than 18 pence each. Moreover, the placing is to be conducted by way of an accelerated bookbuild process which will start immediately.

The number of placing shares and subscription shares to be issued will be determined based on the exchange rate between the dollar and pound on the date on which the bookbuild is closed, Pantheon added.

The company said Arden Partners is acting as nominated adviser and sole broker.

Chief Executive Officer Jay Cheatham said: "The capital raised, if successful, will allow Pantheon to continue the permitting work, engineering, geological and geophysical work necessary for the proposed drilling operations early next year, subject to successful farmout. It will also support the data room for farmout discussions, where Pantheon will be looking for a significant up-front payment as well as a carried work program on future operations.

"Over USD200 million has been spent in the project area where Pantheon now retains 75-100% working interest. Hence, a farm-down on a work program with some form of cash payment is the objective of the company. We have been approached by and have already begun discussions with several interested companies, which is a positive indication of the interest in our North Alaska assets. We believe we have a world class resource in an ideal location for commercial development. If we can successfully conclude the farmout, we hope to be producing oil next year."

Pantheon shares closed down 1.8% at 18.76 pence in London on Thursday.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Pantheon Resources PLC 17.09 GBX -0.64 -

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Alliance News

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