Pantheon Resources PLC Implementation of cost saving initiatives (2600K)
21 Aprile 2020 - 08:00AM
UK Regulatory
TIDMPANR
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 +44 20 7484 5361
Jay Cheatham, CEO
Justin Hondris, Director, Finance and Corporate
Development
Arden Partners plc (Nominated Adviser and
broker) +44 20 7614 5900
Paul Shackleton / Daniel Gee-Summons (Corporate
Finance)
Tim Dainton (Equity Sales)
Blytheweigh +44 20 7138 3204
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.
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END
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