Implementation of cost saving initiatives

RNS Number : 2600K

Pantheon Resources PLC

21 April 2020

 

21^st April, 2020

Pantheon Resources plc

Implementation of cost saving initiatives

Pantheon Resources plc ("Pantheon" or "the Company"), the AIM-quoted oil and gas exploration company with 89.2% - 100% working interests in several projects on the Alaskan North Slope, and 58% - 100% working interests in projects in Polk & Tyler Counties, East Texas, is pleased to provide the following corporate update.

Cost Reductions

In response to recent global events that have negatively affected the outlook for the sector, the Company is reviewing its entire business to reduce non-essential costs. The Board has implemented a 20% reduction in salaries across the Company and the Directors are grateful to the employees and consultants for their support with this initiative which will last until such time as the Board considers it appropriate. These measures, together with our healthy cash balance and lack of debt or work programme commitments mean that Pantheon is resilient.

The Company continues to seek a farm in partner for its Alaskan projects, where over US$200million has been invested, to pay a meaningful up-front cash component as well as carried terms on future drilling.

Jay Cheatham, Chief Executive Officer, said:

"While the oil and gas industry is presently facing serious challenges, the oil price decline has cast a spotlight on oil and gas assets that make sense in a low oil price environment. The significant achievements we have made since the beginning of last year give me confidence that our Alaskan assets  become even more attractive to many oil companies as we estimate that our modelled breakeven costs are lower than most of the industry. This is a result of our Alaskan asset's significant size and scale, being conventional (as opposed to unconventional) oil, its onshore location adjacent to infrastructure and can be brought onstream rapidly. It is my firm belief that these projects are material for any oil company!"  

"Despite this, travel restrictions and the oil price fall will undoubtedly impact the due diligence efforts of some companies including their ability to visit our Houston data room, so we must be prudent with our capital.  These cost cuts allow us additional running room well into next year should farm out discussions unexpectedly drag on. For the avoidance of doubt, our actions should not be interpreted that our farmout efforts have stalled, rather we are acting sensibly given present global uncertainties.  In fact, I am happy to report that we have received a number of enquiries from globally significant groups over the past month expressing interest in our projects, as well as favourable coverage in the US press."

"Making these tough decisions today can protect our Company's capital structure for the future. It was difficult making cuts at a time when all staff have made significant contributions to our recent and significant achievements and I thank them all."

-ENDS-

Further information:

Pantheon Resources plc	[phone]
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate Development
Arden Partners plc (Nominated Adviser and broker)	[phone]
Paul Shackleton / Daniel Gee-Summons (Corporate Finance) Tim Dainton (Equity Sales)
Blytheweigh	[phone]
Tim Blythe, Megan Ray

Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas exploration and production company with assets in East Texas and on the North Slope of Alaska, onshore USA. 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 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 covering c.200,000 gross acres, covered by c.1,000 square miles of proprietary 3D seismic. In January 2020 the Company received an Independent Expert Report certifying a Contingent Resource of 76.5MMBO (million barrels of oil) recoverable on its Greater Alkaid project. In March 2020 Pantheon estimated that the shallowest of the 3 horizons at its Talitha project was estimated to contain 1.8 billion barrels of oil in place and a P50 Technically Recoverable Resource of 483 MMBO. In East Texas, Pantheon has working interests in several conventional prospects in Tyler & Polk Counties, in an area of abundant regional infrastructure.

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.

 

END

 

 

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