Editing Pantheon Resources Plc
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Pantheon Resources Plc, through its subsidiaries, engages in the exploration and production of oil and gas in the United States. Its primary assets are the Greater Alkaid project that covers 22,804 acres located in Alaska; and the Talitha project covering an area of approximately 44,463 acres. The company was incorporated in 2005 and is headquartered in London, the United Kingdom. | Pantheon Resources Plc, through its subsidiaries, engages in the exploration and production of oil and gas in the United States. Its primary assets are the Greater Alkaid project that covers 22,804 acres located in Alaska; and the Talitha project covering an area of approximately 44,463 acres. The company was incorporated in 2005 and is headquartered in London, the United Kingdom. | ||
== Operations == | == Operations == | ||
=== Idea === | === Idea === | ||
ccc | |||
=== Projects === | === Projects === | ||
ccc | ccc | ||
==== Greater Alkaid ==== | ==== Greater Alkaid ==== | ||
Line 24: | Line 13: | ||
===== Alkaid #1 Pay Intervals ===== | ===== Alkaid #1 Pay Intervals ===== | ||
Comprehensive data from Alkaid well revealed a 400-foot gross pay, with 240 feet of net oil pay.<ref name=":0" /> Expert consultations confirmed the potential of this project.<ref name=":0" /> Notably, only a small fraction of the well’s capacity was accessed during the tests. Pantheon projects that optimally designed horizontal development wells could significantly increase oil production.<ref name=":0" /> Advanced seismic imaging indicates even better reservoir potentials in the core.<ref name=":0" /> The company envisions using an early production unit (EPU) to facilitate early cash flow and obtain valuable data.<ref name=":0" /> A full-fledged Central Processing Unit (CPU) is in the pipeline for optimal resource | Comprehensive data from Alkaid well revealed a 400-foot gross pay, with 240 feet of net oil pay.<ref name=":0" /> Expert consultations confirmed the potential of this project.<ref name=":0" /> Notably, only a small fraction of the well’s capacity was accessed during the tests. Pantheon projects that optimally designed horizontal development wells could significantly increase oil production.<ref name=":0" /> Advanced seismic imaging indicates even better reservoir potentials in the core.<ref name=":0" /> The company envisions using an early production unit (EPU) to facilitate early cash flow and obtain valuable data.<ref name=":0" /> A full-fledged Central Processing Unit (CPU) is in the pipeline for optimal resource utilization.<ref name=":0" /> Pantheon is keen to use unconventional oil production technologies, which has become standard across the Alaska North Slope.<ref name=":0" /> | ||
In 2020, an independent report on the Greater Alkaid oil accumulation cited 76.5 million barrels of recoverable reserves, valuing the project at $595m (considering a $55/Bbl oil price).<ref name=":0" /> The company plans to commission a pilot test producer in 2022, which could provide immediate cash flow.<ref name=":0" /> Alkaid’s strategic location offers year-round activity advantages.<ref name=":0" /> | In 2020, an independent report on the Greater Alkaid oil accumulation cited 76.5 million barrels of recoverable reserves, valuing the project at $595m (considering a $55/Bbl oil price).<ref name=":0" /> The company plans to commission a pilot test producer in 2022, which could provide immediate cash flow.<ref name=":0" /> Alkaid’s strategic location offers year-round activity advantages.<ref name=":0" /> | ||
Line 39: | Line 28: | ||
* The Talitha #A well, located eight miles west of the Dalton Highway and TAPS, identified movable light oil across multiple horizons, with over a billion barrels of recoverable oil potential.<ref name=":1" /> | * The Talitha #A well, located eight miles west of the Dalton Highway and TAPS, identified movable light oil across multiple horizons, with over a billion barrels of recoverable oil potential.<ref name=":1" /> | ||
* Its proximity to existing infrastructure offers economic advantages, potentially allowing for faster production ramp-up with | * Its proximity to existing infrastructure offers economic advantages, potentially allowing for faster production ramp-up with minimized capital expenditure.<ref name=":1" /> | ||
* The well reached a depth of c. 10,456 ft, revealing five potentially productive zones. Challenges arose during testing due to operational issues and inclement weather, but significant findings were still achieved.<ref name=":1" /> | * The well reached a depth of c. 10,456 ft, revealing five potentially productive zones. Challenges arose during testing due to operational issues and inclement weather, but significant findings were still achieved.<ref name=":1" /> | ||
Line 52: | Line 41: | ||
The data from Talitha #A has increased confidence in the commercial viability of these zones.<ref name=":1" /> Pantheon remains encouraged by the analysis and sees potential for further exploration and drilling.<ref name=":1" /> The discovery augments the prospectivity of adjacent potential oil-bearing structures, which will be explored in future programs.<ref name=":1" /> | The data from Talitha #A has increased confidence in the commercial viability of these zones.<ref name=":1" /> Pantheon remains encouraged by the analysis and sees potential for further exploration and drilling.<ref name=":1" /> The discovery augments the prospectivity of adjacent potential oil-bearing structures, which will be explored in future programs.<ref name=":1" /> | ||
== | ==== Theta West ==== | ||
Pantheon has concluded drilling at Theta West#1, confirming a discovery of light sweet crude oil.<ref name=":2">https://www.pantheonresources.com/about-pantheon/projects/theta-west</ref> This discovery is now set for extensive production testing.<ref name=":2" /> Theta West stands as Pantheon’s most significant appraisal project.<ref name=":2" /> The company projects its potential to rival the immense hydrocarbon pore volume plays outside the renowned Prudhoe Bay Oilfield in the ANS.<ref name=":2" /> This geological configuration, given its success and volume, can be likened to the deepwater offshore regions in the Gulf of Mexico, West Africa, and recent discoveries off Guyana's coast.<ref name=":2" /> In essence, Theta West is a giant Basin Floor Fan with the potential to hold multibillion barrels of oil.<ref name=":2" /> | |||
Years ago, Pantheon identified this vast geological opportunity and utilized its unique 3D seismic and analytical methodologies to secure a strong position in the Theta West play.<ref name=":2" /> This was strategically done before drilling Talitha #A in 2021.<ref name=":2" /> The Talitha #A drilling confirmed the presence of oil in the Theta West structure. A follow-up drilling at Theta West #1 took place 10.5 miles from Talitha, in a geologically superior position.<ref name=":2" /> To date, three wells — Pipeline State #1, Talitha #1, and Theta West #1 — have successfully tapped into the Basin Floor Fan (BFF) complex.<ref name=":2" /> | |||
The latest Theta West #1 drilling reached a depth of 8,450 feet, navigating through the Upper and Lower Basin Floor Fan target layers of Brookian age.<ref name=":2" /> The drilling revealed approximately 1,160 gross feet of oil reservoir across these horizons.<ref name=":2" /> Preliminary data indicates this reservoir's quality surpasses that of the downdip Talitha #A, with high-quality oil found throughout.<ref name=":2" /> | |||
Key depths recorded are: | |||
* UBFF: 6,800 - 7,000 ft<ref name=":2" /> | |||
* LBFF: 7,450 - 8,410 ft<ref name=":2" /> | |||
These depths exceed previous estimates, and due to external factors such as extreme cold, the company had to rely on Logging While Drilling (LWD) operations.<ref name=":2" /> However, this yielded invaluable data, hinting at hydrocarbon presence higher up from the Talitha #A well.<ref name=":2" /> | |||
AHS/Baker Hughes, the company's partners, have verified the presence of light oil in the UBFF and LBFF's top section, aligning with the LWD data.<ref name=":2" /> The full analysis of LBFF's lower section is still underway.<ref name=":2" /> Initial estimates pegged Theta West #A's potential at 12.1 billion barrels of oil, with a most likely recoverable amount of 1.41 billion barrels on Pantheon's land.<ref name=":2" /> This figure will be re-evaluated after thorough testing and analysis.<ref name=":2" /> | |||
Historically, the Theta West BFF was also successfully drilled in the 1988 Pipeline State #1 well.<ref name=":2" /> More insights were obtained from the Talitha #A well, where the LBFF's substantial thickness was established.<ref name=":2" /> Subsequent testing yielded high-quality oil averaging 73 barrels per day over three days.<ref name=":2" /> | |||
The recent Theta West #1 drilling confirmed expectations of a thicker reservoir at the crest, with increased porosity and permeability.<ref name=":2" /> The site’s shallower depth offers a cost-effective drilling prospect for such a vast resource.<ref name=":2" /> The entire Theta West project spans an impressive 100,000 acres under Pantheon's control, representing a significant opportunity for the company.<ref name=":2" /> Pantheon management considers Theta West as a potentially world-class project in a prime location.<ref name=":2" /> | |||
In broader geological terms, the Theta West BFF is a segment of the Brookian deepwater fan systems.<ref name=":2" /> This includes the Slope Fan system and is situated between the Shelf Margin Deltaic and the Kuparuk Formation in terms of depth.<ref name=":2" /> Both the Talitha #A and Pipeline State #1 wells confirmed these regions as oil-bearing.<ref name=":2" /> Initially thought to be distinct fan systems, recent analysis suggests they might be part of an expansive continuous section, possibly forming a “super trap.”<ref name=":2" /> | |||
=== Strategy === | === Strategy === | ||
Pantheon's | Pantheon focuses on onshore hydrocarbon exploration and production on Alaska's North Slope, a region where their expertise and competitive edge shine. Operating as a lean entity with stringent cost controls, Pantheon is dedicated to optimizing returns for its shareholders. They achieve this by targeting exploration and appraisal activities in areas with proven potential. | ||
Located in the USA, onshore Alaska benefits from a robust free-market framework where both the rule of law and free enterprise principles are deeply rooted. Pantheon's strategic positioning, directly beneath and adjacent to the established yet underutilized Trans Alaska Pipeline System (TAPS) and related transport infrastructures, grants them significant advantages. It enables the company to expedite and economically channel any oil discoveries to the market compared to other North Slope ventures. | |||
Although Pantheon is a smaller exploration and appraisal entity, its arsenal is fortified with over a decade of proprietary geological insights. This wealth of knowledge stems from a substantial investment exceeding US$200 million in their Alaskan properties. Pantheon's leadership is confident that their precise, cost-effective approach, encapsulated in their "prove up and sell" ethos, offers investors a rare chance to engage in impactful, risk-adjusted drilling ventures with substantial promise. Their assets boast over 1,000 square miles of proprietary 3D seismic data and a significant landholding across four projects. The company eagerly anticipates the State of Alaska's awarding of two production units in late 2020 for the Greater Alkaid and Talitha projects, spanning nearly 70,000 acres combined. This is set to be a pivotal turning point for Pantheon. | |||
In the coming year, Pantheon's drilling endeavors will target vast prospects that hold significant economic potential relative to their current market valuation. Any successful discoveries of hydrocarbons from these efforts have the power to revolutionize the company's magnitude and influence. Ultimately, Pantheon's long-term game plan revolves around monetizing these assets, be it through a sale or other viable avenues, when the timing aligns perfectly. | |||
=== Team === | === Team === | ||
==== | ==== Phillip Gobe, Non-Executive Chairman ==== | ||
[[File:Phillip Gobe.jpg|thumb|Phillip Gobe]] | |||
* '''Experience:''' Over four decades in the oil and gas sector, both domestically and internationally.<ref name=":3">https://www.pantheonresources.com/investors/financial-reports/673-final-results-for-the-year-ended-30-june-2022/file</ref> | |||
* '''Current & Past Roles:''' Chairman and former CEO of ProPetro; Senior roles in Energy Partners Ltd, Nuevo Energy Co., Vastar Resources, and Atlantic Richfield Company. He notably managed operations at Prudhoe Bay, the USA's largest oilfield.<ref name=":3" /> | |||
* '''Specialties:''' Drilling, HR, health and safety, and has overseen lucrative corporate exits.<ref name=":3" /> | |||
* '''Board Affiliations:''' Non-executive director at Pioneer Natural Resources, former director of Scientific Drilling International Inc.<ref name=":3" /> | |||
* '''Pantheon Committees:''' Chairs Remuneration and Nominations, Audit, and Conflicts Committees. Member of the Anti-Corruption and Bribery Committee.<ref name=":3" /> | |||
==== Jay Cheatham, Chief Executive Officer ==== | |||
* '''Experience:''' Over five decades encompassing all aspects of the petroleum business.<ref name=":3" /> | * '''Experience:''' Over five decades encompassing all aspects of the petroleum business.<ref name=":3" /> | ||
Line 129: | Line 91: | ||
* '''Pantheon Committees:''' Member of the Remuneration and Nominations, Audit, Conflicts, and Anti-Corruption and Bribery Committees.<ref name=":3" /> | * '''Pantheon Committees:''' Member of the Remuneration and Nominations, Audit, Conflicts, and Anti-Corruption and Bribery Committees.<ref name=":3" /> | ||
==== Justin Hondris, Director of Finance and Corporate Development | ==== Justin Hondris, Director of Finance and Corporate Development ==== | ||
* '''Experience:''' Over 15 years in public company management, specifically in the upstream oil and gas sector.<ref name=":3" /> | * '''Experience:''' Over 15 years in public company management, specifically in the upstream oil and gas sector.<ref name=":3" /> | ||
Line 136: | Line 98: | ||
* '''Pantheon Committees:''' Chairs the Anti-Corruption and Bribery Committee. Member of the Remuneration and Nominations and Conflicts Committees.<ref name=":3" /> | * '''Pantheon Committees:''' Chairs the Anti-Corruption and Bribery Committee. Member of the Remuneration and Nominations and Conflicts Committees.<ref name=":3" /> | ||
==== Robert (Bob) Rosenthal, Technical Director | ==== Robert (Bob) Rosenthal, Technical Director ==== | ||
* '''Experience:''' Over 40 years globally as an Exploration Geologist and Geophysicist.<ref name=":3" /> | * '''Experience:''' Over 40 years globally as an Exploration Geologist and Geophysicist.<ref name=":3" /> | ||
Line 144: | Line 104: | ||
* '''Current Engagement:''' Since 1999, he has operated a successful consulting business, leading exploration initiatives for various private and public entities.<ref name=":3" /> | * '''Current Engagement:''' Since 1999, he has operated a successful consulting business, leading exploration initiatives for various private and public entities.<ref name=":3" /> | ||
==== Jeremy Brest, Non-Executive Director | ==== Jeremy Brest, Non-Executive Director ==== | ||
[[File:Jeremy Brest.jpg|thumb|Jeremy Brest]] | [[File:Jeremy Brest.jpg|thumb|Jeremy Brest]] | ||
Line 151: | Line 111: | ||
* '''Current & Past Roles:''' Founder of Framework Capital Solutions, a boutique advisory firm; Former head of structuring for Indonesia at Credit Suisse and a derivatives trader at Goldman Sachs.<ref name=":3" /> | * '''Current & Past Roles:''' Founder of Framework Capital Solutions, a boutique advisory firm; Former head of structuring for Indonesia at Credit Suisse and a derivatives trader at Goldman Sachs.<ref name=":3" /> | ||
* '''Pantheon Committees:''' Member of the Audit, Remuneration and Nominations, Conflicts, and Anti-Corruption and Bribery Committees.<ref name=":3" /> | * '''Pantheon Committees:''' Member of the Audit, Remuneration and Nominations, Conflicts, and Anti-Corruption and Bribery Committees.<ref name=":3" /> | ||
== Market == | == Market == | ||
=== Total Addressable Market === | === Total Addressable Market === | ||
Here, the total addressable market (TAM) is defined as the global market for oil and gas exploration and production, which includes every potential consumer or business that could use or buy oil and gas, and based on a number of assumptions, it is estimated that the size of the market as of today (3rd September 2023), in terms of revenue, is $ | Here, the total addressable market (TAM) is defined as the global market for oil and gas exploration and production, which includes every potential consumer or business that could use or buy oil and gas, and based on a number of assumptions, it is estimated that the size of the market as of today (3rd September 2023), in terms of revenue, is $ccc trillion. | ||
=== Serviceable Available Market === | === Serviceable Available Market === | ||
Here, the serviceable available market (SAM) is defined as the oil and gas exploration and production market in the Alaskan North Slope, and based on a number of assumptions, it is estimated that the size of the market as of today (3rd September 2023) | Here, the serviceable available market (SAM) is defined as the oil and gas exploration and production market in the Alaskan North Slope, and based on a number of assumptions, it is estimated that the size of the market as of today (3rd September 2023), in terms of revenue, is $ccc billion. | ||
$ | |||
=== Serviceable Obtainable Market === | === Serviceable Obtainable Market === | ||
Line 197: | Line 126: | ||
=== Most recent === | === Most recent === | ||
==== Profit and loss ==== | ==== Profit and loss ==== | ||
==== Balance sheet ==== | ==== Balance sheet ==== | ||
==== Cash flow ==== | ==== Cash flow ==== | ||
ccc | ccc | ||
=== Full-year results === | === Full-year results === | ||
Line 508: | Line 140: | ||
|+Profit and loss | |+Profit and loss | ||
!Year | !Year | ||
!2018 | !2018 | ||
!2019 | !2019 | ||
!2020 (restated) | !2020 (restated) | ||
!2021 | !2021 | ||
!2022 | !2022 | ||
|- | |- | ||
|Currency | |Currency | ||
Line 529: | Line 161: | ||
|- | |- | ||
| colspan="6" |Continuing operations | | colspan="6" |Continuing operations | ||
|- | |- | ||
|Administration expenses | |Administration expenses | ||
| | | | ||
| | | | ||
|(3,667,635) | |(3,667,635) | ||
|(5,034,361) | |(5,034,361) | ||
|(7,430,653) | |(7,430,653) | ||
|- | |- | ||
|Impairment of exploration & evaluation assets | |Impairment of exploration & evaluation assets | ||
| | | | ||
| | | | ||
|(130,112) | |(130,112) | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
Line 587: | Line 177: | ||
|- | |- | ||
|Share Based payments expense | |Share Based payments expense | ||
| | | | ||
| | | | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
|(3,211,038) | |(3,211,038) | ||
|(8,256,575) | |(8,256,575) | ||
|- | |- | ||
|Operating loss | |Operating loss | ||
| | | | ||
| | | | ||
|(3,797,747) | |(3,797,747) | ||
|(8,245,400) | |(8,245,400) | ||
Line 629: | Line 191: | ||
|- | |- | ||
|Convertible Bond - Interest Expense | |Convertible Bond - Interest Expense | ||
| | | | ||
| | | | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
Line 636: | Line 198: | ||
|- | |- | ||
|Convertible Bond - Revaluation of Derivative Liability | |Convertible Bond - Revaluation of Derivative Liability | ||
| | | | ||
| | | | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
|4,310,773 | |4,310,773 | ||
|- | |- | ||
|Interest receivable | |Interest receivable | ||
| | | | ||
| | | | ||
|23,759 | |23,759 | ||
|4,234 | |4,234 | ||
Line 664: | Line 212: | ||
|- | |- | ||
|Loss before taxation | |Loss before taxation | ||
| | | | ||
| | | | ||
|(3,773,988) | |(3,773,988) | ||
|(8,241,165) | |(8,241,165) | ||
Line 671: | Line 219: | ||
|- | |- | ||
|Taxation | |Taxation | ||
| | | | ||
| | | | ||
|965,681 | |965,681 | ||
|1,573,094 | |1,573,094 | ||
Line 678: | Line 226: | ||
|- | |- | ||
|Loss for the year from Continuing Operations after Taxation | |Loss for the year from Continuing Operations after Taxation | ||
| | | | ||
| | | | ||
|(2,808,307) | |(2,808,307) | ||
|(6,668,071) | |(6,668,071) | ||
Line 685: | Line 233: | ||
|- | |- | ||
|Loss for the year from discontinued operations | |Loss for the year from discontinued operations | ||
| | | | ||
| | | | ||
|(14,170,288) | |(14,170,288) | ||
|(54,415) | |(54,415) | ||
Line 692: | Line 240: | ||
|- | |- | ||
|Loss for the year | |Loss for the year | ||
| | | | ||
| | | | ||
|(16,978,595) | |(16,978,595) | ||
|(6,722,487) | |(6,722,487) | ||
Line 699: | Line 247: | ||
|- | |- | ||
|Other comprehensive income for the year Exchange differences from translating foreign operations | |Other comprehensive income for the year Exchange differences from translating foreign operations | ||
| | | | ||
| | | | ||
|(47,800) | |(47,800) | ||
|1,503,199 | |1,503,199 | ||
Line 706: | Line 254: | ||
|- | |- | ||
|Total comprehensive loss for the year | |Total comprehensive loss for the year | ||
| | | | ||
| | | | ||
|(17,026,395) | |(17,026,395) | ||
|(5,219,288) | |(5,219,288) | ||
Line 715: | Line 263: | ||
|- | |- | ||
|Basic and diluted loss per share | |Basic and diluted loss per share | ||
| | | | ||
| | | | ||
|(0.56)¢ | |(0.56)¢ | ||
|(1.17)¢ | |(1.17)¢ | ||
Line 724: | Line 272: | ||
|- | |- | ||
|Basic and diluted loss per share | |Basic and diluted loss per share | ||
| | | | ||
| | | | ||
|(2.83)¢ | |(2.83)¢ | ||
|(0.01)¢ | |(0.01)¢ | ||
| | | | ||
|} | |} | ||
Line 735: | Line 283: | ||
|+Balance sheet | |+Balance sheet | ||
! | ! | ||
!2018 | !2018 | ||
!2019 | !2019 | ||
!2020 | !2020 | ||
!2021 | !2021 | ||
!2022 | !2022 | ||
|- | |- | ||
|Currency | |Currency | ||
Line 760: | Line 308: | ||
|- | |- | ||
|Exploration & evaluation assets | |Exploration & evaluation assets | ||
| | | | ||
| | | | ||
|156,097,609 | |156,097,609 | ||
|188,954,719 | |188,954,719 | ||
|237,722,294 | |237,722,294 | ||
|- | |- | ||
|Property, plant and equipment | |Property, plant and equipment | ||
| | | | ||
| | | | ||
|658,898 | |658,898 | ||
|30,308 | |30,308 | ||
Line 781: | Line 322: | ||
|- | |- | ||
|Total non-current assets | |Total non-current assets | ||
| | | | ||
| | | | ||
|156,756,507 | |156,756,507 | ||
|188,985,027 | |188,985,027 | ||
Line 790: | Line 331: | ||
|- | |- | ||
|Trade and other receivables | |Trade and other receivables | ||
| | | | ||
| | | | ||
|74,167 | |74,167 | ||
|109,876 | |109,876 | ||
Line 797: | Line 338: | ||
|- | |- | ||
|Cash and cash equivalents | |Cash and cash equivalents | ||
| | | | ||
| | | | ||
|4,802,965 | |4,802,965 | ||
|5,663,477 | |5,663,477 | ||
Line 804: | Line 345: | ||
|- | |- | ||
|Total current assets | |Total current assets | ||
| | | | ||
| | | | ||
|4,877,132 | |4,877,132 | ||
|5,773,353 | |5,773,353 | ||
Line 811: | Line 352: | ||
|- | |- | ||
|Total assets | |Total assets | ||
| | | | ||
| | | | ||
|161,633,639 | |161,633,639 | ||
|194,758,380 | |194,758,380 | ||
Line 822: | Line 363: | ||
|- | |- | ||
|Convertible Bond – Debt | |Convertible Bond – Debt | ||
| | | | ||
| | | | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
Line 829: | Line 370: | ||
|- | |- | ||
|Trade and other payables | |Trade and other payables | ||
| | | | ||
| | | | ||
|388,092 | |388,092 | ||
|1,107,090 | |1,107,090 | ||
Line 836: | Line 377: | ||
|- | |- | ||
|Provisions | |Provisions | ||
| | | | ||
| | | | ||
|1,335,863 | |1,335,863 | ||
|1,250,000 | |1,250,000 | ||
Line 843: | Line 384: | ||
|- | |- | ||
|Lease Liabilities | |Lease Liabilities | ||
| | | | ||
| | | | ||
|46,311 | |46,311 | ||
|32,788 | |32,788 | ||
Line 850: | Line 391: | ||
|- | |- | ||
|Other Liabilities | |Other Liabilities | ||
| | | | ||
| | | | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
Line 857: | Line 398: | ||
|- | |- | ||
|Deferred tax liability | |Deferred tax liability | ||
| | | | ||
| | | | ||
|5,293,296 | |5,293,296 | ||
|3,705,737 | |3,705,737 | ||
Line 864: | Line 405: | ||
|- | |- | ||
|Total current liabilities | |Total current liabilities | ||
| | | | ||
| | | | ||
|7,063,562 | |7,063,562 | ||
|6,095,615 | |6,095,615 | ||
Line 873: | Line 414: | ||
|- | |- | ||
|Lease Liabilities | |Lease Liabilities | ||
| | | | ||
| | | | ||
|27,914 | |27,914 | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
Line 880: | Line 421: | ||
|- | |- | ||
|Convertible Bond – Debt | |Convertible Bond – Debt | ||
| | | | ||
| | | | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
Line 887: | Line 428: | ||
|- | |- | ||
|Convertible Bond – Derivative | |Convertible Bond – Derivative | ||
| | | | ||
| | | | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
Line 894: | Line 435: | ||
|- | |- | ||
|Total non-current liabilities | |Total non-current liabilities | ||
| | | | ||
| | | | ||
|27,914 | |27,914 | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
Line 901: | Line 442: | ||
|- | |- | ||
|Total liabilities | |Total liabilities | ||
| | | | ||
| | | | ||
|7,091,476 | |7,091,476 | ||
|6,095,615 | |6,095,615 | ||
Line 908: | Line 449: | ||
|- | |- | ||
|Net assets | |Net assets | ||
| | | | ||
| | | | ||
|154,542,163 | |154,542,163 | ||
|188,662,765 | |188,662,765 | ||
Line 919: | Line 460: | ||
|- | |- | ||
|Share capital | |Share capital | ||
| | | | ||
| | | | ||
|8,568,721 | |8,568,721 | ||
|9,739,203 | |9,739,203 | ||
Line 926: | Line 467: | ||
|- | |- | ||
|Share premium | |Share premium | ||
| | | | ||
| | | | ||
|173,687,092 | |173,687,092 | ||
|208,683,936 | |208,683,936 | ||
Line 933: | Line 474: | ||
|- | |- | ||
|Retained losses | |Retained losses | ||
| | | | ||
| | | | ||
|(29,608,911) | |(29,608,911) | ||
|(36,331,398) | |(36,331,398) | ||
Line 940: | Line 481: | ||
|- | |- | ||
|Currency reserve | |Currency reserve | ||
| | | | ||
| | | | ||
|(268,637) | |(268,637) | ||
|1,234,562 | |1,234,562 | ||
Line 947: | Line 488: | ||
|- | |- | ||
|Share based payment reserve | |Share based payment reserve | ||
| | | | ||
| | | | ||
|2,163,898 | |2,163,898 | ||
|5,336,462 | |5,336,462 | ||
|11,776,246 | |11,776,246 | ||
|- | |- | ||
|Shareholders’ equity | |Shareholders’ equity | ||
| | | | ||
| | | | ||
|154,542,163 | |154,542,163 | ||
|188,662,765 | |188,662,765 | ||
Line 972: | Line 506: | ||
|+Cash flow | |+Cash flow | ||
!Year | !Year | ||
!2018 | !2018 | ||
!2019 | !2019 | ||
!2020 | !2020 | ||
!2021 | !2021 | ||
!2022 | !2022 | ||
|- | |- | ||
|Currency | |Currency | ||
Line 993: | Line 527: | ||
|- | |- | ||
|Net outflow from operating activities | |Net outflow from operating activities | ||
| | | | ||
| | | | ||
|(5,707,802) | |(5,707,802) | ||
|(3,098,495) | |(3,098,495) | ||
Line 1,002: | Line 536: | ||
|- | |- | ||
|Interest received | |Interest received | ||
| | | | ||
| | | | ||
|25,881 | |25,881 | ||
|4,295 | |4,295 | ||
Line 1,009: | Line 543: | ||
|- | |- | ||
|Funds used for drilling, exploration and leases | |Funds used for drilling, exploration and leases | ||
| | | | ||
| | | | ||
|(1,591,591) | |(1,591,591) | ||
|(24,973,399) | |(24,973,399) | ||
|(45,267,175) | |(45,267,175) | ||
|- | |- | ||
|Advance for Performance Bond | |Advance for Performance Bond | ||
| | | | ||
| | | | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
Line 1,044: | Line 557: | ||
|- | |- | ||
|Property, plant and equipment | |Property, plant and equipment | ||
| | | | ||
| | | | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
|(3,368) | |(3,368) | ||
|- | |- | ||
|Disposal | |Disposal | ||
| | | | ||
| | | | ||
|(1,134) | |(1,134) | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
Line 1,072: | Line 571: | ||
|- | |- | ||
|Net cash outflow from investing activities | |Net cash outflow from investing activities | ||
| | | | ||
| | | | ||
|(1,566,844) | |(1,566,844) | ||
|(24,969,105) | |(24,969,105) | ||
Line 1,081: | Line 580: | ||
|- | |- | ||
|Proceeds from share issues | |Proceeds from share issues | ||
| | | | ||
| | | | ||
|10,816,383 | |10,816,383 | ||
|30,181,084 | |30,181,084 | ||
Line 1,088: | Line 587: | ||
|- | |- | ||
|Issue costs paid in cash | |Issue costs paid in cash | ||
| | | | ||
| | | | ||
|(571,364) | |(571,364) | ||
|(1,197,275) | |(1,197,275) | ||
Line 1,095: | Line 594: | ||
|- | |- | ||
|Proceeds from Convertible Bond | |Proceeds from Convertible Bond | ||
| | | | ||
| | | | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
|<nowiki>-</nowiki> | |<nowiki>-</nowiki> | ||
Line 1,102: | Line 601: | ||
|- | |- | ||
|Repayment of borrowing and leasing liabilities | |Repayment of borrowing and leasing liabilities | ||
| | | | ||
| | | | ||
|(21,394) | |(21,394) | ||
|(55,698) | |(55,698) | ||
Line 1,109: | Line 608: | ||
|- | |- | ||
|Net cash inflow from financing activities | |Net cash inflow from financing activities | ||
| | | | ||
| | | | ||
|10,223,625 | |10,223,625 | ||
|28,928,111 | |28,928,111 | ||
Line 1,116: | Line 615: | ||
|- | |- | ||
|Increase in cash & cash equivalents | |Increase in cash & cash equivalents | ||
| | | | ||
| | | | ||
|2,948,979 | |2,948,979 | ||
|860,511 | |860,511 | ||
Line 1,123: | Line 622: | ||
|- | |- | ||
|Cash and cash equivalents at the beginning of the year | |Cash and cash equivalents at the beginning of the year | ||
| | | | ||
| | | | ||
|1,853,986 | |1,853,986 | ||
|4,802,965 | |4,802,965 | ||
Line 1,130: | Line 629: | ||
|- | |- | ||
|Cash and cash equivalents at the end of the year | |Cash and cash equivalents at the end of the year | ||
| | | | ||
| | | | ||
|4,802,965 | |4,802,965 | ||
|5,663,476 | |5,663,476 | ||
Line 1,138: | Line 637: | ||
== Risks == | == Risks == | ||
As with any investment, investing in Pantheon Resources Plc carries a level of risk. Overall, based on the Pantheon Resources Plc's adjusted beta (i.e. | As with any investment, investing in Pantheon Resources Plc carries a level of risk. Overall, based on the Pantheon Resources Plc's adjusted beta (i.e. ccc)<ref>Research shows that an investment has two main types of risks: 1) non-systematic and 2) systematic. Systematic risk is the risk related to the overall market, and non-systematic risk is the risk that's specific to an individual investment. Evidence shows that taking on non-systematic risk is inefficient, and it's, therefore, best to eliminate it; and in most cases, elimination is fairy easy to do [by holding a diversified portfolio of investments (i.e. around 15 investments)]. Accordingly, when assessing the riskiness of an investment, it’s best to look at the systematic risk only (i.e. ignore the non-systematic risk). A key measure of systematic risk is beta, and a main way to determine the riskiness of an investment is to compare the beta of the investment with the beta of the market, which is 1. For example, Supply@ME Capital's adjusted beta (5 years, monthly data) is 4.61, and is, accordingly, 561% above the market beta (of 1); assuming that a 'high' level of riskiness is 50% or more above the market beta, then the riskiness of investing in Supply@ME Captial is considered to be 'high' (561%>50%). For estimating an asset's beta, in terms of time period, and frequency of observations, the most common choice is five years of monthly data, yielding 60 observations. One study of U.S. stocks found support for five years of monthly data over alternatives. An argument can be made that the 2 years, weekly data can be especially appropriate in fast growing markets. The beta value in a future period has been found to be on average closer to the mean value of 1.0, the beta of an average-systematic-risk security, than to the value of the raw beta. Because valuation is forward looking, it is logical to adjust the raw beta so it more accurately predicts a future beta.</ref>, the degree of risk associated with an investment in Pantheon Resources Plc is 'ccc'. | ||
Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used five years of monthly data (i.e. 60 observations in total), which is supported by a study and is the most common choice. The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more/most accurately predicts a future beta. In addition, here, we have assumed that for an investment to be considered 'medium' risk, it must have a beta value of between 0.5 and 1.5. Further information about the beta ratings can be found in the appendix section of this report. | Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used five years of monthly data (i.e. 60 observations in total), which is supported by a study and is the most common choice. The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more/most accurately predicts a future beta. In addition, here, we have assumed that for an investment to be considered 'medium' risk, it must have a beta value of between 0.5 and 1.5. Further information about the beta ratings can be found in the appendix section of this report. | ||
The key risks can be found below. For us, currently, the biggest risk to the valuation of the company relates to the | The key risks can be found below. For us, currently, the biggest risk to the valuation of the company relates to the lease obligations. | ||
# '''Lease Obligations:''' The group leases properties for oil and gas exploration, requiring annual payments. Any default can lead to lease termination, which would adversely impact business and financial operations. Pantheon has actively participated in annual lease sales and secured 40,000 leases in November 2022. These leases have a 10-year life and favorable terms. | |||
# '''Lease Renewal:''' Leases may be terminated if the group fails to meet specific obligations, like timely exploration. Not renewing these leases can significantly harm the business. However, the group has obtained unitization for certain projects to possibly extend their initial lease term. | |||
# '''Licensing and Permissions:''' The group needs various approvals for developing their leases. Failure to obtain these permissions can hamper the group's ability to operate. To counter this, the group employs personnel experienced in navigating regulatory requirements. | |||
# '''Political and Regulatory Changes:''' Changes in the political environment, particularly in the Northern Slope Borough, Alaska, and the U.S., can adversely affect operations. New regulations or stricter enforcement of current ones can pose challenges. However, Pantheon's projects are on state lands, thus less affected by federal policy changes. | |||
# '''Lease Obligations:''' The group leases properties for oil and gas exploration, requiring annual payments. Any default can lead to lease termination, which would adversely impact business and financial operations. Pantheon has actively participated in annual lease sales and secured 40,000 leases in November 2022. These leases have a 10-year life and favorable terms. | # '''Legal Proceedings:''' The group might face legal challenges that can be costly and can damage its reputation. They engage with legal counsel proactively to mitigate potential risks. | ||
# '''Lease Renewal:''' Leases may be terminated if the group fails to meet specific obligations, like timely exploration. Not renewing these leases can significantly harm the business. However, the group has obtained | # '''Relationships with Stakeholders:''' The oil and gas sector often faces scrutiny. Failure to manage relationships with communities and environmental groups might adversely affect the group’s reputation and operations. The group endeavors to conduct operations responsibly and legally. | ||
# '''Licensing and Permissions:''' The group needs various approvals for developing their leases. Failure to obtain these permissions can hamper the group's ability to operate. To counter this, the group employs personnel experienced in navigating regulatory requirements. | # '''Regulatory Changes:''' Amendments to existing laws regarding oil and gas exploration could adversely affect the group's business. They continuously monitor potential regulatory shifts and maintain relationships with regulatory agencies. | ||
# '''Political and Regulatory Changes:''' Changes in the political environment, particularly in the Northern Slope Borough, Alaska, and the U.S., can adversely affect operations. New regulations or stricter enforcement of current ones can pose challenges. However, Pantheon's projects are on state lands, thus less affected by federal policy changes. | # '''Supply Chain Disruptions:''' Global events, like the Covid-19 pandemic and the Russia/Ukraine conflict, have affected the supply chain and caused inflation. The group plans its operations meticulously and orders equipment in advance to minimize disruptions. | ||
# '''Legal Proceedings:''' The group might face legal challenges that can be costly and can damage its reputation. They engage with legal counsel proactively to mitigate potential risks. | |||
# '''Relationships with Stakeholders:''' The oil and gas sector often faces scrutiny. Failure to manage relationships with communities and environmental groups might adversely affect the group’s reputation and operations. The group endeavors to conduct operations responsibly and legally. | |||
# '''Regulatory Changes:''' Amendments to existing laws regarding oil and gas exploration could adversely affect the group's business. They continuously monitor potential regulatory shifts and maintain relationships with regulatory agencies. | |||
# '''Supply Chain Disruptions:''' Global events, like the Covid-19 pandemic and the Russia/Ukraine conflict, have affected the supply chain and caused inflation. The group plans its operations meticulously and orders equipment in advance to | |||
== Valuation == | == Valuation == | ||
=== Absolute Valuation === | === Absolute Valuation === | ||
== Appendix == | == Appendix == | ||
=== Relative valuation === | === Relative valuation === | ||
ccc | ccc | ||
=== Significant holdings === | === Significant holdings === | ||
Line 2,066: | Line 667: | ||
On 3 August 2021, Mr Michael Spencer and IPGL Limited advised they were the registered holder of 25,888,710 shares representing 3.7% of the share capital of Pantheon on that date, and were the holder of 7,816,200 Financial instruments of similar economic effect, representing 1.13% of the registered share capital of Pantheon at that time. These shares were held through one or more nominees accounts which may or may not be wholly in the top shareholder list presented above. The referenced shareholdings are only considered accurate on the referenced data and are not expected to be updated until the next reporting threshold (higher or lower) is crossed. | On 3 August 2021, Mr Michael Spencer and IPGL Limited advised they were the registered holder of 25,888,710 shares representing 3.7% of the share capital of Pantheon on that date, and were the holder of 7,816,200 Financial instruments of similar economic effect, representing 1.13% of the registered share capital of Pantheon at that time. These shares were held through one or more nominees accounts which may or may not be wholly in the top shareholder list presented above. The referenced shareholdings are only considered accurate on the referenced data and are not expected to be updated until the next reporting threshold (higher or lower) is crossed. | ||
On 1 April 2022, Mr Sanjay Motwani notified of a direct holding in 3,271,788 ordinary shares and an indirect holding in 19,851,474 ordinary shares, collectively representing 3.05% of the share capital of Pantheon on that date. These shares were held through one or more nominees accounts which may or may not be wholly in the top shareholder list presented above. The referenced shareholding(s) are only considered accurate on the referenced data and are not expected to be updated until the next reporting threshold (higher or lower) is crossed. | On 1 April 2022, Mr Sanjay Motwani notified of a direct holding in 3,271,788 ordinary shares and an indirect holding in 19,851,474 ordinary shares, collectively representing 3.05% of the share capital of Pantheon on that date. These shares were held through one or more nominees accounts which may or may not be wholly in the top shareholder list presented above. The referenced shareholding(s) are only considered accurate on the referenced data and are not expected to be updated until the next reporting threshold (higher or lower) is crossed. </ref> | ||
! | ! | ||
!Number of Ordinary Shares | !Number of Ordinary Shares | ||
Line 2,101: | Line 702: | ||
=== Capital structure === | === Capital structure === | ||
The Company has | The Company has 907,206,399 ordinary fully paid shares in issue. | ||
The number of ordinary shares not in public hands amounts to 6,956,691 equivalent to 0.9% of the issued allotted and fully paid ordinary shares. | |||
This is correct as of 21 June 2023. | |||
==== Share options ==== | ==== Share options ==== | ||
{| class="wikitable" | {| class="wikitable" | ||
|+Share options | |+Share options | ||
!Exercise price (£) | !Exercise price (£) | ||
!Number of share options exercisable into ordinary shares on issue | !Number of share options exercisable into ordinary shares on issue | ||
Line 2,135: | Line 741: | ||
|+Share warrants<ref>The share options are exercisable into ordinary shares upon exercise, whereas the warrants are convertible on a 1:1 basis into non-voting shares upon exercise. Non voting shares are further convertible into ordinary shares on a 1:1 basis. | |+Share warrants<ref>The share options are exercisable into ordinary shares upon exercise, whereas the warrants are convertible on a 1:1 basis into non-voting shares upon exercise. Non voting shares are further convertible into ordinary shares on a 1:1 basis. | ||
The Ordinary Shares of the Company have not been nor will they be registered under the United States Securities Act of 1933, as amended ("Securities Act"), or under the securities laws of any state of the United States or under the applicable securities laws of Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada. Accordingly, subject to certain exceptions, the Ordinary Shares may not, directly or indirectly, be offered, sold, transferred, taken up or delivered, directly or indirectly, in the United States, Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada or for the benefit of any US person (as defined in Regulation S under the Securities Act).</ref | The Ordinary Shares of the Company have not been nor will they be registered under the United States Securities Act of 1933, as amended ("Securities Act"), or under the securities laws of any state of the United States or under the applicable securities laws of Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada. Accordingly, subject to certain exceptions, the Ordinary Shares may not, directly or indirectly, be offered, sold, transferred, taken up or delivered, directly or indirectly, in the United States, Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada or for the benefit of any US person (as defined in Regulation S under the Securities Act).</ref> | ||
!Exercise price (£) | !Exercise price (£) | ||
!Number of share warrants exercisable into non-voting shares | !Number of share warrants exercisable into non-voting shares | ||
Line 2,145: | Line 751: | ||
|30 September 2024 | |30 September 2024 | ||
|1.29% | |1.29% | ||
|} | |} | ||
Line 2,770: | Line 975: | ||
|- | |- | ||
|PSDM | |PSDM | ||
|Pre-stack depth <abbr>migration</abbr>. A seismic processing technique which | |Pre-stack depth <abbr>migration</abbr>. A seismic processing technique which utilizes rock velocity models to iteratively arrive at a depth converted seismic data volume. | ||
|- | |- | ||
|PSTM | |PSTM |