Pantheon Resources plc (“Pantheon” or “the Company”), the AIM-quoted oil and gas exploration company with working interests of 89.2% – 100% in certain projects located adjacent to transportation and pipeline infrastructure on the Alaska North Slope.
Is pleased to announce that it has reached agreement with Otto Energy Alaska, LLC (“Otto”), a 100% subsidiary of Otto Energy Ltd, to acquire its 100% ownership of Borealis Alaska LLC.
Borealis Alaska LLC owns a 10.8% working interest in each of the 16 leases in the 44,463 acre Talitha Unit. Upon completion of the acquisition, Pantheon will own a 100% working interest in the Talitha Unit. By way of an ealier transaction, Otto will retain a 0.5% overriding royalty interest in any future production from the Talitha Unit.
Following this purchase and Pantheon’s success in the State of Alaska lease sale last week, Pantheon will hold a 100% working interest in approximately 161,000 acres. Pantheon currently has an 89.2% working interest and a 77.05% net revenue interest in the Talitha Unit. Post the Otto transaction, Pantheon will have a 100% working interest and an 86.0% net revenue interest in the Talitha Unit.
As purchase consideration, Pantheon will issue to Otto 14,272,592 ordinary fully paid shares, subject to a lock-up until 30 June 2021 (the “Consideration Shares”). The transfer of ownership is conditional upon approval by the Alaska Department of Natural Resources, which is fully expected but estimated to take a number of weeks. Accordingly, the issue and subsequent admission to trading of the Consideration shares will not occur until that time.
Jay Cheatham, CEO, said: “We are very pleased to acquire this working interest from Otto. We will now have a 100% working interest in the Talitha Unit at the same time we are drilling ahead with the Talitha #A well. Following completion of this transaction, Pantheon will have a 100% working interest in all of its Alaska North Slope projects. Otto was a good partner and we welcome them as a shareholder where they can continue to enjoy exposure to the Talitha project as well as to the remainder of our Alaska North Slope portfolio.”
Notes to Editors
Pantheon Resources plc is an AIM listed Oil & Gas exploration and production focused on 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.
On the North Slope of Alaska, Pantheon holds working interests of 89.2% – 100% in projects covered by c.1,000 square miles of proprietary 3D seismic. The Company has received Independent Expert Reports certifying a Contingent Resource of 76.5MMBO (million barrels of oil) recoverable on its Greater Alkaid project and 302MMBO Prospective Resource at its Talitha project.
Information contained within this RNS is considered to be inside information prior to its announcement. 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) incorporated into, or forms part of, this announcement.
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