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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.
Assuming that Pantheon Resources increases its share of the global oil and gas exploration and production market by cccx to ccc% (from less than ccc%) and other assumptions, the expected return of an investment in the company over the next five years is ccc%, which equates to an annual return of ccc%. In other words, an £1,000 investment in the company is expected to return £ccc in five years time.
The degree of risk associated with an investment in Pantheon Resources is 'medium', with the shares having an adjusted beta that is 45% below the market (0.55 vs. 1).<ref name=":4" />
Accordingly, if your desired annual rate of return is ccc% or less over the next five years and/or one of your goals is to xxx (i.e. you share in the mission of Pantheon Resources), and you are both willing and able to accept the possibility of losing your entire investment amount, then an investment in the company is considered to be a 'suitable' one.


== Operations ==
== Operations ==


=== Idea ===
=== Idea ===
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Founded in 2005, Pantheon Resources plc began as a UK-based exploration company targeting onshore USA basins, especially East Texas. However, in 2019, recognising the vast potential of the Alaska North Slope, Pantheon strategically acquired Great Bear Petroleum's assets. This move prompted a shift from East Texas to concentrate solely on Alaska, given its proximity to key Alaskan oil infrastructure and the immense opportunities it presented.


=== Projects ===
=== Projects ===
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[[File:Pantheon Acreage North Slope.jpg]]
[[File:Advantageous location.jpg]]


==== Greater Alkaid ====
==== Greater Alkaid ====
The Alkaid #1well was drilled in 2015 adjacent to the Dalton Highway and Trans Alaska <abbr>Pipeline</abbr> System (TAPS) - the primary transportation highway and major export pipeline (TAPS) on the Alaska North Slope respectively. Drilling of the well was terminated prior to the well reaching target depth for environmental reasons; the nearby Sag River flooded which ultimately led to the Dalton Highway being closed to all traffic for a number of weeks. As a result Alkaid was comprehensively logged but no production testing was conducted at that time due to the urgency to conclude operations and demobilize all equipment prior to advancement of the flood. Importantly, the well had encountered 400 feet of gross pay when operations were concluded, however, promisingly, there was no <abbr>oil</abbr> water contact encountered and this the Company believes potential exists for several hundred feet of additional gross pay. Activities recommenced at Alkaid in 2019 with Pantheon successfully production testing the Primary Zone of Interest which is contained within the same Brookian section that has proven so successful in the recent drilling campaigns of other operators regionally. The recent oil discovery at Talitha #A in the Shelf Margin Deltaic <abbr>formation</abbr> has also upgraded the potential for the Shelf Margin Deltaic to be oil bearing on the Greater Alkaid <abbr>structure</abbr> as well.
In 2015, the Alkaid #1 well was drilled close to both the Dalton Highway and the Trans Alaska Pipeline System (TAPS) – the main transportation route and significant export pipeline on the Alaska North Slope, respectively.<ref name=":0">https://www.pantheonresources.com/about-pantheon/projects/greater-alkaid</ref> The drilling was halted before reaching its target depth due to environmental concerns: the nearby Sag River flooding led to the closing of the Dalton Highway.<ref name=":0" /> While Alkaid was meticulously documented, no production tests were carried out then.<ref name=":0" /> The well had shown promising signs, having encountered a 400-foot gross pay without an oil-water contact. Pantheon began activities again in 2019, successfully testing the Primary Zone of Interest.<ref name=":0" /> The recent oil discovery at Talitha #A enhanced the potential for oil in the Greater Alkaid structure.<ref name=":0" />


===== ALKAID #1 PAY INTERVALS =====
===== Alkaid #1 Pay Intervals =====
Data acquired from the Alkaid well included extensive sidewall coring, formation imaging logs and the oil <abbr>reservoir</abbr> flow test. A number of expert consulting firms performed detailed petrophysical analysis with all confirming similar results, thereby providing increased confidence on the potential of this project. The Alkaid well encountered 400 feet of gross pay with 240 feet of net oil pay and no water contact, testing high quality 35 deg API light oil. This result upgraded the adjoining Phecda segment which is now mapped with Alkaid to be part of one large ‘Greater Alkaid’ structure. The Alkaid well tested an average 100 <abbr>bopd</abbr> via a small “through-tubing single frac”. Only 6 ft of the 240 ft net pay interval was perforated, accessing only a fraction of ultimate well productivity. Pantheon estimates that horizontal development wells could potentially produce as much as 2000 bopd with recoveries of 1.5-2.5 million barrels per well. Primary recovery is conservatively estimated at 10-15% yielding 90-135 million barrels of recoverable oil from the estimated 900 million barrels of oil in place (“<abbr>OIP</abbr>”) but could be significantly higher with optimally located and designed wells. In order to maximize Alaskan Tax credits at the time, the Alkaid well was located a State mandated minimum distance from the nearest well and hence only penetrated the of the structure. Recent high tech seismic imaging clearly indicates that better reservoir can be expected in the heart of the accumulation, hence recoveries are expected to improve materially. The successful application of secondary recovery techniques could further increase ultimate recoveries, adding major upside potential to this project. The Company plans to use an early production unit (EPU) as part of a pilot testing operation to yield early cashflow as well as acquiring valuable production data to assist future development planning. Ultimately a Central Processing Unit (CPU) with full facilities will be needed to fully exploit the resource potential. Pantheon’s Alaskan projects will utilize unconventional oil production technologies applied to conventional oil reservoirs in order to maximize <abbr>reserves</abbr> and production which has now become standard operating procedure across the entire Alaska North Slope (“ANS”). The industry has transferred these technologies into Alaskato develop this higher quality oil in stratigraphic Brookian sections containing billions of barrels of recently discovered oil. The Greater Alkaid oil accumulation sits underneath and adjacent to the TAPS pipeline and the Dalton Highway making it uniquely ideal for year-round “Phased Development”, minimizing cost and offering early production potential with significant advantages to other remote <abbr>oil field</abbr> developments on the ANS.
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 utilisation.<ref name=":0" /> Pantheon is keen to use unconventional oil production technologies, which has become standard across the Alaska North Slope.<ref name=":0" />


Independent Expert report completed in 2020 on the Greater Alkaid oil accumulation ascribed 76.5 million barrels of certified recoverable reserves with a calculated NPV (10) of $595m for this singular project (at the then prevailing realized oil price of $55/Bbl held flat). This estimate discounted certain parts of the field by 50% and hence is considered by the Company to represent a conservative estimate. A single development well is planned for 2022 that will be completed as a pilot test producer which could yield early cashflow and near-term payback. Being onshore and adjacent to established infrastructure provides opportunities for phased development to manage cash flow and <abbr>risk</abbr> associated with development. The ultimate development concept model will involve a Central Processing Facility adjacent the highway and Trans Alaska Pipeline with approximately 44 wells targeting with peak production of circa 30,000 barrels of oil per day. A phased development means a bulk of capex could be funded through production revenue hence yielding high IRR’s. Expected development of Talitha will leverage off the Greater Alkaid infrastructure, hence improving economic returns. A major benefit of Alkaid over other projects on the Alaska North Slope is that wells can be rapidly brought onto production after testing by trucking the oil to Pump Station #1, about 20 miles north of Alkaid. Alkaid's location, underneath and adjacent to the Dalton Highway and the Trans Alaska Pipeline System allows the placement of a drill pad next to the Dalton Highway which offers the ability for year-round activity as well as other material advantages.
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" />


===== ALKAID #1 =====
===== Alkaid #1 Highlights =====
Pay from Top SMD(B) to TD
Pantheon secured a unit over Alkaid and outlined its proposed activities in a First Plan of Exploration (POE) in November 2020.<ref name=":0" /> The plan includes reprocessing 3D seismic data and studying potential 'hot-tap' integrations into the TAPS.<ref name=":0" /> Though there are no fixed drilling commitments, the POE proposes drilling two wells near the Dalton Highway for year-round operations.<ref name=":0" /> Depending on the Alkaid #2 well results, the Alkaid #3 well will follow.<ref name=":0" />


Pantheon was awarded a unit over Alkaid where it submitted a First Plan of Exploration ("POE") in November 2020 outlining its proposed activities in relation to the unit. These include a commitment to the reprocessing of approximately 50 square miles of 3D seismic as well as engagement of 3rd party specialists to produce an engineering study on a conceptual 'hot-tap' into the Trans Alaska Pipeline System ("TAPS"). There are no firm drilling commitments, however the POE proposes the drilling of two wells from gravel pads located adjacent to the Dalton Highway to allow year-round activity. Under the POE, drilling and long-term production testing on the first of these wells, the Alkaid #2 well, is targeted for Spring/Summer 2022. Dependent upon the results of Alkaid#2, the POE anticipates the drilling and testing of the Alkaid#3 well thereafter. GBP is a large exploration leaseholder where it controls over 250,000 acres, most of it contiguous, south of the giant Prudhoe Bay and Kuparuk oil fields which are the largest oil fields in North America. This acreage is covered by 3D seismic and contains several existing discoveries and a host of world class exploration <abbr>prospects</abbr>. Pantheon has a 100% interest in all of its projects.  
GBP, a significant exploration leaseholder, controls over 250,000 acres, positioned south of North America's major oil fields, Prudhoe Bay and Kuparuk.<ref name=":0" /> The region, blanketed by 3D seismic data, hosts several discoveries and promising exploration prospects.<ref name=":0" /> Pantheon holds complete interest in all its ventures.<ref name=":0" />


==== Talitha ====
==== Talitha ====
The Talitha #A well was drilled in 2021 and was an appraisal of a conventional <abbr>oil</abbr> accumulation discovered by a well named <abbr>Pipeline</abbr> State #1 drilled by Arco Alaska in 1988. Pipeline State #1 was designed to drill to 13,000 feet (“ft”) depth but stopped short of this, just below the Kuparuk <abbr>formation</abbr>. The well encountered several oil-bearing intervals as well as strong oil <abbr>shows</abbr> throughout an extensive section and did observe oil to surface from several Brookian zones whilst drilling. Promisingly, several cores taken from the well confirmed the presence of oil. No <abbr>reservoir</abbr> flow tests were performed as at the time as the objective of the well had been to find a lookalike for the prodigious Kuparuk River oilfield. This activity occurred in 1988 when oil prices had plunged to around WTI $15-$20/bbl and the Trans Alaska Pipeline System (“TAPS”) was running at full capacity, hence there was little incentive to continue the evaluation of the discovery at that time. Moreover, at that time 3D seismic imaging was in its infancy, drilling and completion technologies as well as oil extraction techniques were not nearly as advanced as they are today. Had today’s techniques been available in the 1980’s, it is possible that the Pipeline State #1 well may well have initiated the new field development Pantheon envisions today. High resolution 3D seismic acquired in 2013 indicated the potential for an exceptionally large oil accumulation across multiple zones which structurally conform to the oil encountered at Pipeline State #1 which led to the drilling of the Talitha #A well in 2021 which confirmed oil in several zones. Independent experts at AHS Baker Hughes conducted a ''‘Volatiles Analysis Service’'' (“VAS”) at Talitha #A and confirmed the presence of oil in all cuttings taken over a 3,700 ft section within the wellbore. The recent operations in early 2022 at the Talitha project involved testing several of those oil-bearing zones in the Talitha #A well bore.
The Talitha #A well, drilled in 2021, appraised an oil accumulation initially discovered by the Pipeline State #1 well in 1988.<ref name=":1">https://www.pantheonresources.com/about-pantheon/projects/talitha</ref> While the original well in 1988 showed significant oil potential, it was halted due to economic reasons and lack of advanced technology.<ref name=":1" /> However, high-resolution 3D seismic data acquired in 2013 reignited interest in the area.<ref name=":1" /> The Talitha #A well confirmed oil presence across several zones, and recent tests in 2022 further validated the well's promising prospects.<ref name=":1" />


TALITHA A PAY INTERVALS
===== Key Findings =====


* 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 minimised 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" />


There are several distinct stratigraphic oil zones and possibly more that have been identified at Talitha which have been defined using ''advanced seismic petrophysics'', a technology which integrates petrophysics, <abbr>geophysics</abbr> and <abbr>geology</abbr>. Advances such as horizontal drilling and reservoir stimulation now enable economic development of these type of reservoirs, which were previously considered uneconomic. This integrated approach has proven to be successful on the Alaska North Slope (ANS) and resulted in an exploration revival of the ANS which now boasts some of the largest onshore conventional oil discoveries in the world.
===== Specific Zones and Results =====


The Talitha #A well, drilled by Pantheon, is located approximately eight miles west of the Dalton Highway and TAPS and four miles from the Pipeline State #1 well and confirmed the presence of movable light oil in all of the objective <abbr>horizons</abbr>. Talitha #A has been announced by Pantheon as a new discovery of oil with over a billion barrels of recoverable oil potential across the multiple stacked (primary and secondary) objectives. These zones are comprised of Brookian reservoirs (primary targets) and the deeper Kuparuk reservoir (secondary target).
# Basin Floor Fan (BFF): Tests indicated quality oil with sustained production rates.<ref name=":1" /> Future developments would potentially be at structurally higher positions for better results.<ref name=":1" />
# Slope Fan System (SFS): Testing showed producible oil, with implications for resource and oil recovery estimates. The success here suggests potential for other areas of the North Slope.<ref name=":1" />
# Shelf Margin Deltaic (SMD): Testing faced challenges from blockages and weather, but earlier data and the success of the deeper zones have kept the company's optimism intact for the potential of this zone.<ref name=":1" />
# Kuparuk: As the deepest oil formation, the Kuparuk provided significant findings.<ref name=":1" /> It's a regional producer with an adjacent giant oilfield, the Kuparuk Field.<ref name=":1" /> The Talitha #A well showed promising signs, although testing encountered issues.<ref name=":1" />


Most of the recent larger oil discoveries by other operators on the ANS have been drilled some distance from existing infrastructure which will require extremely high preproduction expenditure and exceedingly long lead times to any production. These recent discoveries by other operators remain several years away from producing any oil and cashflow. Talitha’s closer proximity to the Dalton Highway and TAPS will be immediately appraised and if successful, the objective is to progress it to development via phased modular production facilities reducing the need for substantial upfront capital expenditure, hence allowing production to ramp up as early cashflow is reinvested to grow production.
===== Conclusion =====
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 Talitha #A well reached a total depth of c. 10,456 ft and drilled through the Shelf Margin Deltaic sequence along with several other targets including (a) the Slope Fan System, (b) the <abbr>Basin</abbr> Floor Fan, both within the Brookian section, as well as (c) the deeper Kuparuk formation. Data collected during drilling indicated five potentially productive zones in the (from deepest to shallowest) (i) Kuparuk, (ii) Lower Basin Floor, (iii) Upper Basin Floor Fan sequences, (iv) Slope Fan and (v) Shelf Margin Deltaic horizons. The Company was only able to test the deepest of these zones, the Kuparuk Formation in 2021 as it experienced operational issues that led to a delayed testing operation and eventual suspension of the testing at the onset of the warmer Spring weather. Recent testing operations in 2022 focussed on the three shallow Brookian zones, namely the Lower Basin Floor Fan, the Slope System and the Shelf Margin Deltaic which are all normally pressured and were secured behind <abbr>casing</abbr>. The shallow zones are all geologically independent of the Kuparuk, have all confirmed the presence of potentially significant quantities of light oil, and were flow tested as part of the recent program.
== Kodiak ==
The Kodiak project, previously known as Theta West, is a significant appraisal project for Pantheon Resources. The project has garnered attention due to its potential to rival the immense hydrocarbon pore volume plays outside the renowned Prudhoe Bay Oilfield in the Alaska North Slope (ANS). Geologically, the Kodiak field 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">https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/rmvz29r</ref>


===== BASIN FLOOR FAN =====
=== Independent Expert Report (IER) Findings ===
Testing operations on the Lower Basin Floor Fan ("BFF") involved perforating three separate 10 ft intervals over 370 ft out of 600 ft of gross section, at 9405 to 9415 ft, 9205 to 9215 ft and 9045 to 9055 ft. These three intervals were individually stimulated, and successfully flow tested, producing high quality c. 35 to 39 degree API oil and averaging 73 barrels of oil per day ("<abbr>BOPD</abbr>") over a three day test period.
An Independent Expert Report (IER) by Netherland, Sewell & Associates (NSAI) on the Kodiak project has provided a contingent resource estimate. The 2C (best estimate) for the Kodiak field stands at a staggering 962.5 million barrels of marketable liquids. This comprises both oil and natural gas liquids (NGLs). The NGLs are of significant value as they can be blended with the oil, yielding approximately 90% of the Alaska North Slope (ANS) price per barrel.<ref name=":2" />
{| class="wikitable"
|+Gross 100% Working Interest Contingent Resources
!Resource Category
!Oil (million bbls)
!NGLs (million bbls)
!Residual Gas (BCF)
!Total Marketable Liquids<ref>Pantheon addition of Oil & NGLs.</ref> (million bbls)
|-
|Low Estimate (1C)
|145.4
|292.4
|2,151.7
|437.8
|-
|Best Estimate (2C)
|314.6
|647.9
|4,465.2
|962.5
|-
|High Estimate (3C)
|647.8
|1,366.4
|8,822.7
|2,014.2
|}


On the final day of testing, the well was flowing at a sustained rate of approximately 40 BOPD. Encouragingly, the bottom hole pressure is near to the reservoir pressure, thus providing an indication of the production potential of this portion of the oil accumulation, which is at the distal limits of the field. Future development wells would all be drilled horizontally and stimulated with multiple stage fracs, meaning that flow rates are expected to be many times higher.
[[File:Kodiak Project Horizon (illustrative type log).jpg|Kodiak Project Horizon (illustrative type log)]]


The Company was greatly encouraged by the test results given the optimal location for any development of the BFF will be in a structurally higher position where better reservoir properties can be expected and, in a location, similar to which is presently being drilled and tested at Theta West, 10.5 miles to the north west, where the BFF is the primary objective.  
[[File:Location of Kodiak and Ahpun Projects.jpg|Location of Kodiak and Ahpun Projects]]


===== SLOPE FAN SYSTEM =====
=== Field Development and Infrastructure ===
Testing operations on the Slope Fan System (“SFS”) which is immediately above the BFF involved perforating two separate five ft intervals at 8160 to 8165 ft and 7855 to 7860 ft, within two distinct c. 50 ft sand bodies or 'lobes'. The two intervals were stimulated, and flow tested together, producing high quality c. 35 to 38 degree API oil and averaging 45 BOPD over a three day test period. On the final day of testing, the well was flowing at a sustained rate of approximately 32 BOPD from this combined 10 ft of perforations which again is highly encouraging given production wells on the Alaska North Slope are drilled horizontally, which would typically result in materially higher flow rates.
The Kodiak project spans an area of 126,000 acres, which includes recently awarded additional acreage. The field is defined by the hydrocarbon bearing horizons contained within the large basin floor fan system. This system stretches from the Hue Shale top seal to the underlying HRZ shale. The field's vastness and potential make it one of the largest basin floor fan systems discovered onshore in recent decades.<ref name=":2" />


This is the first indication of producible oil in the Slope Fan System on Pantheon's acreage and has significant implications for future resource and recoverable oil estimates. The two SFS lobes are in two distinct trapping systems and suggest very good reservoir properties. The Company's initial analysis suggests that the deeper of the two lobes extends below the Alkaid Deep anomaly and will be assessed in the upcoming Alkaid #2 well, planned for summer 2022.
Pantheon's proprietary 3D seismic data and three wells (Pipeline State 1, Talitha-A, and Theta West-1) have confirmed the field's potential. The company plans to further develop the Kodiak project, focusing on the recently acquired "chimney acreage" and the delineation provided by the seismic data.<ref name=":2" />


The Company has not previously provided guidance on potential resource for the SFS but is now greatly encouraged by these results and will provide an estimate of resource and recoverable oil in due course.
=== Appraisal and Future Plans ===
Pantheon intends to drill the next Kodiak appraisal well in the recently acquired leases, northwest of Theta West-1. This drilling aims to encounter a reservoir section with improved reservoir characteristics, potentially yielding higher flow rates and hydrocarbon recovery rates. The company's detailed geological model, which takes into account data from nearby producing fields, supports this approach.<ref name=":2" />


===== SHELF MARGIN DELTAIC =====
To address the contingencies highlighted in NSAI's evaluation, Pantheon plans to cut full cores and acquire a comprehensive suite of wireline logs and fluid samples in future appraisal wells. This granular data could potentially lead to future increases in recoverable resource estimates.<ref name=":2" />
The Shelf Margin Deltaic testing was the last test in the shallowest zone of the Talitha #A well bore. The Company had to suspend testing of the Shelf Margin Deltaic (“SMD”) horizon due to suspected blockages in the well bore. The well was perforated in the SMD from 6,965 ft to 6,975 ft and was successfully fracture stimulated. Immediately after the fracture stimulation, the test was suspended by a blizzard on the North Slope which shut down all operations for health and safety reasons. Flow testing operations resumed three days later.  


Once flow testing commenced and before the well stopped flowing after a short period of time, only 45% of the fracture fluid was produced, with no formation water and small amounts of light high quality 34 degree API oil. Other than the small amounts of oil, no reservoir fluids were produced. The consensus among the Company and external consultants is that there is a blockage preventing any additional reservoir fluid from entering the well bore. Based on all the data, which includes a full suite of logs, sidewall cores, extensive Volatiles Analysis Service (“VAS”) work undertaken by AHS/Baker Hughes over the past 12 months, and the testing of the lower zones this year, the Company’s expectation for the SMD is that it should produce better than the two lower zones already tested; the Basin Floor Fan and Slope Fan System horizons, where the Company achieved excellent results.  
=== Conclusion ===
The Kodiak project represents a transformative opportunity for Pantheon Resources. With nearly one billion barrels of recoverable liquids, the project's potential is immense. The close proximity to existing infrastructure, combined with the vast resource base, positions Pantheon advantageously for future growth and development. The forthcoming appraisal activities and the company's strategic approach to the Kodiak field further underscore its potential as a world-class project in a prime location.<ref name=":2" />


Pantheon decided to suspend operations at Talitha with a possible return to testing after the program on Theta West or return next season. The main priority for the remainder of the current winter season is to allow sufficient time to satisfactorily test the BFF at Theta West. The shortage of testing equipment had necessitated the movement of the Coil Tubing Unit and test equipment from Talitha to Theta West. This consequently limits the amount of time available for remedial work at Talitha.
=== Strategy ===
Pantheon's primary strategy is to maximize shareholder value through the following means:
 
* '''High Working Interest Maintenance:''' Pantheon retains a 100% working interest through the evaluation process of its assets. This high stake allows the company to have significant control over its projects and potential returns.
* '''Strategic Drilling and Farm-outs:''' The company aims to prove up its assets through targeted drilling. Where appropriate, Pantheon may pursue farm-outs, partnering with other entities to share the costs and risks of exploration and development.
* '''Asset Monetisation:''' Pantheon's endgame is to monetize its assets, either through a sale or other means, at the opportune moment. This "prove up and sell" approach is designed to offer investors a chance to capitalize on high-impact, risk-managed drilling.
 
=== Team ===
Pantheon boasts a seasoned board and a robust advisory group, all of whom are shareholders with established track records in the oil and gas sector. They have a rich history of building profitable companies for acquisition. Additionally, Pantheon's board and management team have extensive experience with oil and gas operations in Alaska.
[[File:David Hobbs.png|thumb|David Hobbs.]]


Regardless of the operational challenges, the company believes the potential of the SMD is undiminished and it plans further operations on the SMD at Talitha to remediate the issue either this season, time permitting, or next. Despite the blockage encountered in the SMD, the Talitha well has been a great success for Pantheon, confirming the presence of movable, high quality light oil in both the Slope Fan System and the Basin Floor Fan, which has very significant implications for our acreage. The next well in the programme is an Alkaid appraisal/production well in the summer of 2022 which will penetrate the SMD as well several other potential oil zones, hence additional data will be gathered on the SMD. The plan at Alkaid is to drill a horizontal lateral wellbore on the best oil zone and, if successful, put on a long-term production test.
==== David Hobbs, Executive Chairman<ref>https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/xel4enr</ref> ====


Pantheon is extremely encouraged by the analysis and initial results of the shallower zones in the Talitha #A well. The reservoir qualities are in line with expectations, the oil appears to be lighter than expected and an additional significant zone has been discovered in Talitha #A, significantly increasing the total resource potential.
* '''Experience:''' Graduated as a Petroleum Engineer from Imperial College in 1984. Worked at British Gas, Monument Oil & Gas, and Hardy Oil and Gas. Former Chief Energy Strategist at Cambridge Energy Research Associates (CERA) and part of the leadership team at King Abdullah Petroleum Studies and Research Center (KAPSARC) in Riyadh, Saudi Arabia.<ref name=":10">https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/xleqqjw</ref>
* '''Education:''' Petroleum Engineer from Imperial College.<ref name=":10" />
* '''Prominent Roles:''' Drilling engineer at British Gas; commercial and business development roles at Monument Oil & Gas and Hardy Oil and Gas; Chief Energy Strategist at CERA; leadership role at KAPSARC.<ref name=":10" />
* '''Pantheon Committees:''' Details to be confirmed.<ref name=":10" />
* '''Current Directorships:''' SV-Pleione Limited, Polar Energy LLC.<ref name=":10" />


An enormous volume of high-quality data has been collected from drilling Talitha #A which has both de-risked these zones for future drilling, and increased confidence of their commercial viability. The Basin Floor Fan zone encountered more reservoir than expected. The Upper BFF is an additional zone with that was penetrated in Talitha #A. The Slope Fan System was proven oil productive and better than expectations. The SMD was not as well developed as anticipated at Talitha #A. Pantheon now interprets that the SMD extends across the Alkaid project where the zone is proven oil bearing, and better developed as it extends southeast across the Dalton Highway. This significantly increases the resource potential near the highway and pipeline. The discovery of oil in these formations enhances the prospectivity of other adjoining potential oil-bearing <abbr>structures</abbr> that will form part of a future drilling programme. The Company believes that it can “see” light oil in reservoir within its 3D seismic.
==== Jay Cheatham, Chief Executive Officer<ref name=":3">https://www.pantheonresources.com/investors/financial-reports/673-final-results-for-the-year-ended-30-june-2022/file</ref> ====


The SMD was the primary interval of focus utilized to define the Talitha Production Unit which covers 44,373 acres. The SMD could be classed as analogous in stratigraphic setting to the large Pikka/Horseshoe discovery to the west which is also described as a SMD play. The SMD play now extends into the Alkaid Unit to the northeast lying directly above the tested Alkaid discovery. New mapping also extends the play due east and underneath the Dalton Highway and TAPS.
[[File:Jay Cheatham.jpg|thumb|Jay Cheatham.]]


===== KUPARUK =====
* '''Experience:''' Over five decades encompassing all aspects of the petroleum business.<ref name=":3" />
The third and deepest oil formation is the Kuparuk formation. The Kuparuk formation is a prolific regional producer just north of Pantheon’s leases where there is a giant oilfield named the Kuparuk Field, holding an estimated oil in place of 14 billion barrels of oil. Oil was discovered in the Kuparuk formation at the Pipeline State #1 well in 1988 but much deeper than the established Kuparuk <abbr>oil fields</abbr> to the north. The Pipeline State well encountered 47 ft of net oil pay in the Kuparuk but was never tested. The Talitha #A well was drilled “up <abbr>dip</abbr>” from Pipeline State and encountered thicker and better reservoir rocks. The well encountered ± 60 ft of well-developed sand with high resistivity readings and very strong gas chromatograph indications of oil. The presence of oil in reservoir was independently confirmed by VAS. Talitha #A demonstrated the key elements of a proven hydrocarbon system in the Kuparuk formation with the presence of movable high-quality (± 42 degree API) oil, however during testing the well-produced oil intermittently along with solution gas and formation water with lower salinity than anticipated. High quality light oil flowed intermittently at rates up to 100 BOPD as test encountered several operational issues and is believed to exhibit ‘oil wettability’ characteristics, which will be addressed in future wells through the application of different drilling products and techniques. The Kuparuk horizon at this location was over pressured which was both unexpected and unlike any known Kuparuk well regionally, causing challenges in testing. The Kuparuk at Talitha #A is some 800 ft downdip from its ideal '<abbr>updip</abbr>' position and was recognized, predrill, as a secondary target but important stratigraphic play test. The Talitha #A well location was selected as the optimal location for the shallower Shelf Margin Deltaic horizon, the primary target of the well.
* '''Prominent Roles:''' Senior Vice President and District Manager for ARCO's eastern District; President of ARCO International; President and CEO of Rolls-Royce Power Ventures.<ref name=":3" />
* '''Specialties:''' Operational expertise with significant financial acumen; formerly served as CFO for ARCO's Oil & Gas, and CEO of Petrogen Fund.<ref name=":3" />
* '''Pantheon Committees:''' Member of the Remuneration and Nominations, Audit, Conflicts, and Anti-Corruption and Bribery Committees.<ref name=":3" />


Our technical team prioritised testing the Kuparuk formation and ultimately recommended deferring plans to test the shallower horizon during the 2021 drilling season because the <abbr>well logs</abbr> of the Kuparuk indicated excellent reservoir, comparable to reservoirs in highly productive nearby Kuparuk fields. Based upon the well logs and regional analogues, the test results were a surprise, and more work will be needed to understand the Kuparuk reservoir at this location. Comprehensive analysis of the VAS and wireline data from these zones over the forthcoming months will enable the Company to fully optimize its testing programme for next season, as well as enabling lengthier flow tests.
==== Justin Hondris, Director of Finance and Corporate Development<ref name=":3" /> ====


Before drilling Talitha #A, Pantheon completed an internal analysis of the Kuparuk Formation in late 2020 where it estimated the Kuparuk formation, on a 100% basis, has the potential to contain 1.4 billion barrels of oil in place and a Prospective Recoverable Resource of 341 million barrels of oil as a most likely case.  A standalone development concept would be significantly enhanced if this development is combined with the discovered resources the shallower section at Talitha and Alkaid.  
* '''Experience:''' Over 15 years in public company management, specifically in the upstream oil and gas sector.<ref name=":3" />
* '''Background:''' Corporate finance, private equity, and capital markets in the UK and internationally; previous private equity involvement.<ref name=":3" />
* '''Responsibilities:''' Manages Pantheon's financial, legal, administrative, and corporate development functions.<ref name=":3" />
* '''Pantheon Committees:''' Chairs the Anti-Corruption and Bribery Committee. Member of the Remuneration and Nominations and Conflicts Committees.<ref name=":3" />


==== Theta West ====
==== Robert (Bob) Rosenthal, Technical Director<ref name=":3" /> ====
Pantheon has recently completed drilling of the Theta West#1 well, confirming the discovery of light sweet crude <abbr>oil</abbr>, which will now be subject to an extensive production testing operations. Theta West is Pantheon’s largest appraisal project, which the Company believes has the potential to be one of the largest hydrocarbon pore volume plays currently being exploited on the ANS outside of the giant Prudhoe Bay Oilfield. This type of geological play and its volumetric size, if successful, is comparable to deepwater offshore Gulf of Mexico, West Africa and recent discoveries offshore Guyana. It is defined as a giant <abbr>Basin</abbr> Floor Fan with multibillion barrel oil potential.


Pantheon recognised this large geological play several years ago and leveraged its proprietary 3D seismic and analytical methodologies over the past few years to strategically secure a dominant position in the Theta West play fairway, prior to the drilling of Talitha #A in 2021. The drilling of Talitha #A confirmed the Theta West <abbr>structure</abbr> as oil bearing on the distil flanks of the field which was followed up with the recent Theta West #1 <abbr>appraisal well</abbr> structurally higher i.e., “up <abbr>dip</abbr>” in a better geologic location some 10.5 miles from Talitha.  There are currently three wells that have penetrated and encountered oil in the Basin Floor Fan (“BFF”) complex - <abbr>Pipeline</abbr> State #1, Talitha #1 and Theta West #1.
[[File:Bob Rosenthal.jpg|thumb|Bob Rosenthal.]]


The Theta West #1 reached a total depth at 8,450 feet (“ft”) having drilled through both the Upper Basin Floor Fan ("UBFF") and Lower Basin Floor Fan ("LBFF") target <abbr>horizons</abbr>, which are both Brookian age, and having encountered approximately 1,160 gross ft of hydrocarbon bearing <abbr>reservoir</abbr> across both horizons combined. Data received so far suggests the reservoir quality to be superior to the downdip Talitha #A, with high quality light oil encountered across the entire section.
* '''Experience:''' Over 40 years globally as an Exploration Geologist and Geophysicist.<ref name=":3" />
* '''Key Roles:''' Senior exploration roles at Exxon and BP, gaining expertise in the geology of North Slope of Alaska and Texas.<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" />


The UBFF was encountered between 6,800 and 7,000 ft, and the LBFF was encountered between 7,450 and 8,410 ft depth. The top of the UBFF is located approximately 150 ft higher than pre-drill estimates. Well bore conditions in the shallower sections above the primary objective, combined with the extremely cold weather, have prevented the Company from conducting wireline operations in the open hole. However, the Company undertook Logging While Drilling ("LWD") operations which included resistivity, gamma ray, neutron density, <abbr>formation</abbr> density along with gas chromatography readings during drilling, which has provided excellent quality data, indicating the presence of <abbr>hydrocarbons</abbr> in the targeted horizons some 1,500 ft structurally higher (<abbr>updip</abbr>) from the Talitha #A well, 10.5 miles to the southeast.
==== Jeremy Brest, Non-Executive Director<ref name=":3" /> ====


Samples analysed to date by AHS/Baker Hughes, who were contracted to undertake Volatiles Analyses ("VAS"), has also confirmed the presence of light oil within the UBFF and the top portion of the LBFF, consistent with the LWD data. AHS/Baker Hughes is yet to complete analysis of the lower portion of the LBFF. Company estimates of the resource potential of Theta West #A (pre-drill) on a 100% basis were 12.1 billion barrels of Oil in Place and a <abbr>P50</abbr> Contingent Resource (Recoverable) of 1.41 billion barrels of oil on Pantheon’s acreage as a most likely case under primary recovery. This will be reviewed and updated post the testing operation and more detailed evaluation.
[[File:Jeremy Brest.jpg|thumb|Jeremy Brest]]


The Theta West BFF was also penetrated in the Pipeline State #1 well drilled in 1988, substantially downdip from Talitha #A, and was also oil bearing. The Talitha #A well penetrated the two separate reservoirs within the BFF in a structurally down dip location, over eight miles from the crest of the <abbr>trap</abbr> to the northwest. At the Talitha #A site, the LBFF is 600 ft thick with approximately 50% net sand to gross rock interval ratio. The LBFF was successfully tested at Talitha #A where three separate 10 ft intervals were perforated over 370 ft out of 600 ft of gross section, at 9405 to 9415 ft, 9205 to 9215 ft and 9045 to 9055 ft. These three intervals were individually stimulated and flow tested, producing high quality c. 35 to 39 degree API oil and averaging 73 barrels of oil per day over a three day test period, before flowing at a sustained rate of approximately 40 <abbr>BOPD</abbr> on the final day of testing.
* '''Experience:''' Over 25 years in investment banking and financial advisory.<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" />


As predicted, the current Theta West #1 well reservoir target interval was substantially thicker at its (updip) crest and substantially shallower in depth than at Talitha #A with increased <abbr>porosity</abbr> and <abbr>permeability</abbr>. The shallow drilling location of Theta West presents a simple low-cost drilling operation for a major resource. The Theta West project covers approximately 100,000 acres controlled by Pantheon. Theta West represents a major opportunity for Pantheon to pursue the appraisal and development of what management believes  is a truly world class project in an excellent location.
==== Allegra Hosford Scheirer, Independent Non-Executive Director<ref name=":9" /> ====


The Theta West BFF is part of the Brookian deepwater fan systems, which include the Slope Fan system, and lie below the Shelf Margin Deltaic and above the Kuparuk Formation in depth, all of which were proven as oil-bearing in the discovery well at Talitha #A and Pipeline State #1. The original interpretation was that this was a series of discrete fan systems, however, more recent analysis has indicated that the fan systems previously identified as discrete pay zones could, in fact, be part of one large continuous section that extends several thousand feet and has the potential to lie within a “super trap”.
[[File:Allegra Hosford Scheirer.jpg|thumb|Allegra Hosford Scheirer.]]


=== Strategy ===
* '''Experience:''' Internationally recognised expert in petroleum system analysis with significant experience in basin modelling, organic geochemistry, geophysical techniques, and machine learning. Evaluated numerous oil and gas provinces globally, including the Alaska North Slope.<ref name=":9">https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/rmvm22r</ref>
Onshore hydrocarbon exploration and production on the North Slope of Alaska is Pantheon’s strategy, where our expertise and competitive advantage lie. Our lean organisation with tight cost controls is committed to maximising the potential returns to shareholders through carefully targeted exploration and appraisal in proven areas.
* '''Education:''' Ph.D. in marine geology and geophysics from the Massachusetts Institute of Technology.<ref name=":9" />
* '''Prominent Roles:''' Scientist at Stanford University for 15 years; worked with the Energy Resources Program at the U.S. Geological Survey ("USGS"); independent adviser for Great Bear Petroleum.<ref name=":9" />
* '''Pantheon Committees:''' Details to be confirmed. Current Directorships: Geomodelling Solutions LLC.<ref name=":9" />


Onshore Alaska is part of a sophisticated free market economy in the USA where the rule of law and encouragement of free enterprise are both deeply ingrained. Our location, immediately underneath and adjacent to established and underutilized Trans Alaska <abbr>Pipeline</abbr> System (TAPS) and transport infrastructure yields huge advantages. We can bring on stream any <abbr>oil</abbr> discoveries to market more quickly and cost-effectively than other projects on the North Slope of Alaska.
== Market ==


Despite being a small exploration and appraisal company, we have the benefit of over 10 years in-depth proprietary knowledge of the <abbr>geology</abbr>, resulting from over US$200m invested on Pantheon’s Alaskan acreage to date. The board of Pantheon believes that its low cost, narrow focus (“prove up and sell”) strategy offers investors a unique and attractive opportunity to participate in high impact, <abbr>risk</abbr> managed drilling which offers significant potential. We have over 1,000 square miles of proprietary 3D seismic as well as a significant acreage position spanning four projects. The anticipated award of two production units in late 2020 by the State of Alaska over the Greater Alkaid and Talitha projects (which encompass nearly 70,000 acres combined) will be a crucial milestone for our company.
=== 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 $5.3 trillion.<ref>[https://www.ibisworld.com/global/market-size/global-oil-gas-exploration-production/#:~:text=The%20market%20size%2C%20measured%20by,is%20%245.3tr%20in%202023. https://www.ibisworld.com/global/market-size/global-oil-gas-exploration-production/#:~:text=The%20market%20size%2C%20measured%20by,is%20%245.3tr%20in%202023.]</ref>


Next year’s drilling will test <abbr>prospects</abbr> that are extremely large with commensurate economic potential compared to our current market capitalization. Any commercial discoveries of <abbr>hydrocarbons</abbr> from this drilling will transform the scale and reach of the company. Our strategy is to monetize the assets by a sale or other means at the appropriate time.
=== 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) is 3.6 billion barrels of oil and 8.9 trillion cubic feet of natural gas conventional resources, which equates to around $242.7 billion in terms of revenue.<ref>To estimate the revenue from 3.6 billion barrels of oil and 8.9 trillion cubic feet (Tcf) of natural gas, you would need to know the prevailing market prices for both commodities. Please note that oil and gas prices can fluctuate significantly based on various factors, so this is a very general estimate.


=== Team ===
1) Oil: Let's use an average price of $60 per barrel, which is a rough average for Brent crude over various periods in the late 2010s and early 2020s.


==== Phillip Gobe, Non Executive Chairman ====
3.6 \text{ billion barrels} \times $60/\text{barrel} = $216 \text{ billion}
Phillip Gobe has over 40 years’ experience in the oil and gas business both in the USA and internationally. He is also Chairman (and former CEO) of ProPetro, a Texas-based oil field services provider in the pressure pumping space, which includes hydraulic fracturing services and cementing, as well as completion services including wireline. Phillip has held senior positions in Energy Partners Ltd (President & COO), Nuevo Energy Co. (COO), Vastar Resources (COO) and several senior positions with Atlantic Richfield Company, including a role as Operations Manager of Prudhoe Bay in Alaska, the largest oilfield in the USA. Throughout his career Phillip has successfully overseen several corporate exits at substantial premiums to pre-deal valuations. Phillip also has a background in drilling, human resources and health and safety. He is currently a non-executive director of the S&P 500 company, Pioneer Natural Resources and was previously a director of Scientific Drilling International Inc, the USA’s fifth largest provider of directional drilling and measurement equipment and operational services. Phillip acts as Chairman of Pantheon’s Remuneration and Nominations Committee, Audit Committee and Conflicts Committee. Phillip is also a member of the Companies Anti-Corruption and Bribery Committee.


==== Jay Cheatham, Chief Executive Officer ====
2) Natural Gas: Natural gas prices can be more region-specific than oil prices. In the U.S., the Henry Hub spot price is a common benchmark. Let's use an average price of $3 per thousand cubic feet (Mcf) for simplicity, though this price can vary widely.
Jay Cheatham has more than 50 years' experience in all aspects of the petroleum business. He has extensive international experience in both oil and natural gas, primarily for ARCO. At ARCO, Jay held a series of senior appointments. These include Senior Vice President and District Manager (ARCO eastern District) with direct responsibility for Gulf Coast US operations and exploration and President of ARCO International where he had responsibility for all exploration and production outside the US Jay's most recent appointment was as President and CEO of Rolls-Royce Power Ventures, where he had the key responsibility for restructuring the Company. 


Jay also has considerable financial skills in addition to his corporate and operational expertise. He has acted as Chief Financial Officer for ARCO's US oil and natural gas company (ARCO Oil & Gas). Moreover, he has an understanding of the capital markets through his past position as CEO to the Petrogen Fund, a private equity fund. 
8.9 \text{ Tcf} \times $3/\text{Mcf} = $26.7 \text{ billion}


Jay is a member of the Company’s Remuneration and Nominations Committee, Audit Committee, Conflicts Committee and Anti-Corruption and Bribery Committee.
Adding these together:


==== Justin Hondris, Director, Finance and Corporate Development ====
$216 \text{ billion (from oil)} + $26.7 \text{ billion (from gas)} = $242.7 \text{ billion}
Justin Hondris has over 15 years’ experience in public company management in the upstream oil and gas sector and has wide ranging experience in corporate finance, private equity and capital markets in the UK and abroad. Prior to Pantheon, Justin was involved in the private equity sector where he gained valuable experience in both investment and exit strategies for growth companies.  


He is responsible for the financial, legal, administrative and corporate development functions of the company. 
So, based on these rough price estimates, 3.6 billion barrels of oil and 8.9 Tcf of natural gas could equate to approximately $242.7 billion in revenue.


Justin acts as Chairman of Pantheon’s Anti-Corruption and Bribery Committee and is a member of the Remuneration and Nominations Committee and the Conflicts Committee.
However, it's essential to consider several factors:


==== Robert (Bob) Rosenthal, Technical Director ====
1) Extraction Costs: The revenue figures above don't account for the costs of extracting, refining, transporting, and selling the oil and gas. These costs can be substantial.
Bob Rosenthal has over 40 years' experience in the oil and gas industry globally as an Exploration Geologist and Geophysicist. He has held various senior exploration positions and spent a large part of his career at Exxon and at BP, where he gained key relevant regional experience in the geology of North Slope of Alaska and of Texas. Since 1999, Bob has run his own successful consulting business and has led the exploration efforts of a number of private and public companies.  


==== Jeremy Brest, Non-executive Director ====
2) Price Fluctuations: Oil and gas prices can fluctuate significantly based on global demand, geopolitical events, technological advancements, and other factors.
Jeremy has more than 25 years’ experience in investment banking and financial advisory. Jeremy is the founder of Framework Capital Solutions, a boutique Singapore-based advisory firm specializing in structuring and execution of private transactions. Prior to founding Framework, Jeremy was the head of structuring for Indonesia at Credit Suisse and a derivatives trader at Goldman Sachs.  


Jeremy is a member of the Company’s Audit Committee, Remuneration and Nominations Committee, Conflicts Committee and Anti-Corruption and Bribery Committee.  
3) Taxes and Royalties: Governments often take a share of the revenue in the form of taxes, royalties, or other fees.</ref>


== Market ==
=== Serviceable Obtainable Market ===
ccc
Here, the serviceable obtainable market (SOM) is defined as the Alaskan North Slope oil and gas exploration and production market in which the company holds lease licenses, 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.


== Financials ==
== Financials ==


=== Most recent ===
=== Most recent ===
After the interim results' period end, the company raised approximately $22 million, net of fees, on 16th May 2023.<ref>https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/w03k7zw</ref>
On 15th June 2023, to address its obligations for the senior unsecured convertible bonds due 2026, the company settled a quarterly principal of US$2.45 million and interest of US$367,500 by issuing 15,172,320 new Ordinary Shares. This arrangement reduces the Convertible Bond's outstanding principal to US$34.30 million.<ref>https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/x5zjy8x</ref>
On 7th September 2023, Pantheon Resources plc announced a private placement of 11.9 million new shares at £0.1878 each, raising $2.793 million from IPGL Limited. The amount will be used to cover a bond repayment, making the placement cash-neutral for Pantheon. The new shares, constituting 1.3% of the pre-placement share capital, will be issued around 29 September 2023.<ref name=":12">https://www.investegate.co.uk/announcement/rns/pantheon-resources--panr/private-placement/7740310</ref>
Accordingly, since the company's interim results, the company has raised raise a total of $27.243 million.
=== Interim results ===


==== Profit and loss ====
==== Profit and loss ====
{| class="wikitable"
|+Profit and loss
!
!2021<ref name=":11">https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/xp8nljr</ref>
!2022<ref name=":11" />
|-
|Currency
|USD
|USD
|-
| colspan="3" |Continuing operations
|-
|Revenue
| -
|455,309
|-
|Production royalties
| -
|(57,101)
|-
|Facilities commissioning and operations
| -
|(837,503)
|-
|Cost of sales
| -
|(183,296)
|-
|Gross loss
| -
|(622,590)
|-
|Administration expenses 
|(3,150,888)
|(3,699,831)
|-
|Share Based payment expense
|(2,013,966)
|(2,935,897)
|-
|Operating loss 
|(5,174,854)
|(7,258,318)
|-
|Convertible Bond - Interest Expense
|(570,295)
|(3,151,102)
|-
|Convertible Bond - Revaluation of Derivative Liability
|(200,531)
|7,937,855
|-
|Interest receivable
|143
|152,492
|-
|Loss before taxation
|(5,945,537)
|(2,319,073)
|-
|Taxation
|1,497,945
|743,097
|-
|Loss for the year
|(4,447,592)
|(1,575,796)
|-
| colspan="3" |Other comprehensive income for the year
|-
|Exchange differences from translating foreign operations
|844,484
|(97,473)
|-
|Total comprehensive loss for the year
|(3,603,108)
|(1,673,449)
|-
| colspan="3" |Loss per share from continuing operations:
|-
|Basic and diluted loss per share
|(0.66)¢
|(0.21)¢
|}


==== Balance sheet ====
==== Balance sheet ====
{| class="wikitable"
|+Balance sheet
!
!2021<ref name=":11" />
!2022<ref name=":11" />
|-
|Currency
|USD
|USD
|-
| colspan="3" |Assets
|-
| colspan="3" |Non-current assets
|-
|Exploration & evaluation assets
|195,662,187
|274,321,398
|-
|Property, plant and equipment
|4,245
|66,199
|-
|Total non-current assets
|195,666,432
|274,387,597
|-
| colspan="3" |Current assets
|-
|Trade and other receivables
|275,315
|2,823,089
|-
|Cash and cash equivalents
|92,667,269
|16,335,676
|-
|Total current assets
|92,942,584
|19,158,765
|-
|Total assets
|288,609,016
|293,546,363
|-
| colspan="3" |Liabilities
|-
| colspan="3" |Current liabilities
|-
|Convertible Bond – Debt
| -
|9,929,027
|-
|Trade and other payables
|1,120,647
|6,336,999
|-
|Provisions
|1,250,000
|5,282,866
|-
|Lease Liabilities
|4,702
|60,007
|-
|Other Liabilities
| -
| -
|-
|Deferred tax liability
|2,207,792
|940,306
|-
|Total current liabilities
|4,583,141
|22,549,205
|-
| colspan="3" |Non-current liabilities
|-
|Lease Liabilities
| -
|2,956
|-
|Convertible Bond – Debt
|39,734,584
|19,228,219
|-
|Convertible Bond – Derivative
|16,023,781
|3,587,629
|-
|Total non-current liabilities
|55,758,365
|22,818,804
|-
|Total liabilities
|60,341,506
|45,368,009
|-
|Net assets
|228,267,510
|248,178,354
|-
| colspan="3" |Equity
|-
| colspan="3" |Capital and reserves
|-
|Share capital
|10,418,381
|10,848,761
|-
|Share premium
|249,429,603
|272,264,411
|-
|Retained losses
|(40,778,990)
|(49,647,328)
|-
|Currency reserve
|2,079,046
|395,605
|-
|Share based payment reserve
|7,119,470
|14,316,906
|-
|Shareholders’ equity
|228,267,510
|248,178,354
|}


==== Cash flow ====
==== Cash flow ====
ccc
ccc
{| class="wikitable"
|+Cash flow
!Year
!2021<ref name=":11" />
!2022<ref name=":11" />
|-
|Currency
|USD
|USD
|-
|Net outflow from operating activities
|(2,446,588)
|(6,722,549)
|-
| colspan="3" |Cash flows from investing activities
|-
|Interest received
|143
|152,492
|-
|Funds used for drilling, exploration and leases
|(6,707,468)
|(36,601,678)
|-
|Advance for Performance Bond
| -
| -
|-
|Interest paid
|(7,961)
| -
|-
|Property, plant and equipment
| -
|(3,033)
|-
|Net cash outflow from investing activities
|(6,715,286)
|(36,452,218)
|-
| colspan="3" |Cash flows from financing activities
|-
|Proceeds from share issues
|42,140,595
|1,756,018
|-
|Issue costs paid in cash
|(946,710)
| -
|-
|Proceeds from Convertible Bond
|55,000,000
| -
|-
|Repayment of borrowing and leasing liabilities
|(28,218)
|(29,696)
|-
|Net cash inflow from financing activities
|96,165,667
|1,726,323
|-
|Increase in cash & cash equivalents
|87,003,793
|(41,448,445)
|-
|Cash and cash equivalents at the beginning of the year
|5,663,476
|57,784,121
|-
|Cash and cash equivalents at the end of the year
|92,667,269
|16,335,677
|}


=== Full-year results ===
=== Full-year results ===
Line 145: Line 508:
|+Profit and loss
|+Profit and loss
!Year
!Year
!2020 (restated)  
!2018<ref name=":6">https://www.pantheonresources.com/investors/financial-reports/648-pantheon-resources-annual-report-and-financial-statements-year-ended-30-june-2019/file</ref>
!2021
!2019<ref name=":7">https://www.pantheonresources.com/investors/financial-reports/654-final-results-for-the-year-ended-june-2020/file</ref>
!2022
!2020 (restated)<ref name=":8">https://www.pantheonresources.com/investors/financial-reports/660-final-results-for-the-year-ended-30-june-2020/file</ref>
!2021<ref name=":3" />
!2022<ref name=":3" />
|-
|-
|Currency
|Currency
|$
|USD
|$
|USD
|$
|USD
|USD
|USD
|-
|-
|Continuing operations
|Year since incorporation
|
|13
|
|14
|
|15
|16
|17
|-
| colspan="6" |Continuing operations
|-
|Revenue
|1,009,570
|724,589
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|Production royalties
|(244,783)
|(205,458)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|Depletion of developed oil & gas assets
|(88,293)
|(148,485)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|Cost of sales
|(562,986)
|(737,208)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|Gross profit/(loss)
|113,508
|(366,562)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|-
|Administration expenses
|Administration expenses
|(1,922,917)
|(3,438,239)
|(3,667,635)
|(3,667,635)
|(5,034,361)
|(5,034,361)
|(7,430,653)
|(7,430,653)
|-
|General & Administrative expenses – Vision
|<nowiki>-</nowiki>
|(1,744,730)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|-
|Impairment of exploration & evaluation assets
|Impairment of exploration & evaluation assets
|(6,805,537)
|(34,138,156)
|(130,112)
|(130,112)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
Line 170: Line 587:
|-
|-
|Share Based payments expense
|Share Based payments expense
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|(3,211,038)
|(3,211,038)
|(8,256,575)
|(8,256,575)
|-
|Impairment of developed oil & gas assets
|<nowiki>-</nowiki>
|(13,092,684)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|Impairment of property plant and equipment
|<nowiki>-</nowiki>
|(1,397,950)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|Impairment of Goodwill
|<nowiki>-</nowiki>
|(796,236)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|Depreciation of production & pipeline facilities
|(145,516)
|(275,665)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|-
|Operating loss
|Operating loss
|(8,760,462)
|(55,250,222)
|(3,797,747)
|(3,797,747)
|(8,245,400)
|(8,245,400)
Line 180: Line 629:
|-
|-
|Convertible Bond - Interest Expense
|Convertible Bond - Interest Expense
|
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|(4,640,537)
|(4,640,537)
|-
|-
|Convertible Bond - Revaluation of Derivative Liability
|Convertible Bond - Revaluation of Derivative Liability
|
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|4,310,773
|4,310,773
|-
|Gain on bargain purchase
|<nowiki>-</nowiki>
|100,757,286
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|Less: deferred tax thereon
|<nowiki>-</nowiki>
|(28,783,396)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|-
|Interest receivable
|Interest receivable
|6,858
|25,781
|23,759
|23,759
|4,234
|4,234
Line 195: Line 664:
|-
|-
|Loss before taxation
|Loss before taxation
|(8,753,604)
|16,749,449
|(3,773,988)
|(3,773,988)
|(8,241,165)
|(8,241,165)
Line 200: Line 671:
|-
|-
|Taxation
|Taxation
|<nowiki>-</nowiki>
|18,757,633
|965,681
|965,681
|1,573,094
|1,573,094
Line 205: Line 678:
|-
|-
|Loss for the year from Continuing Operations after Taxation
|Loss for the year from Continuing Operations after Taxation
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|(2,808,307)
|(2,808,307)
|(6,668,071)
|(6,668,071)
Line 210: Line 685:
|-
|-
|Loss for the year from discontinued operations
|Loss for the year from discontinued operations
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|(14,170,288)
|(14,170,288)
|(54,415)
|(54,415)
Line 215: Line 692:
|-
|-
|Loss for the year
|Loss for the year
|(8,753,604)
|35,507,082
|(16,978,595)
|(16,978,595)
|(6,722,487)
|(6,722,487)
Line 220: Line 699:
|-
|-
|Other comprehensive income for the year Exchange differences from translating foreign operations
|Other comprehensive income for the year Exchange differences from translating foreign operations
|277,183
|(179,284)
|(47,800)
|(47,800)
|1,503,199
|1,503,199
Line 225: Line 706:
|-
|-
|Total comprehensive loss for the year
|Total comprehensive loss for the year
|(8,476,421)
|35,327,798
|(17,026,395)
|(17,026,395)
|(5,219,288)
|(5,219,288)
|(14,693,468)
|(14,693,468)
|-
|-
|Loss per share from continuing operations:
| colspan="6" |Loss per share from continuing operations:
|
|
|
|-
|-
|Basic and diluted loss per share
|Basic and diluted loss per share
|(3.72)¢
|10.54¢
|(0.56)¢
|(0.56)¢
|(1.17)¢
|(1.17)¢
|(1.93)¢
|(1.93)¢
|-
|-
|Loss per share from discontinued operations:
| colspan="6" |Loss per share from discontinued operations:
|
|
|
|-
|-
|Basic and diluted loss per share
|Basic and diluted loss per share
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|(2.83)¢
|(2.83)¢
|(0.01)¢
|(0.01)¢
|
|<nowiki>-</nowiki>
|}
|}


Line 254: Line 735:
|+Balance sheet
|+Balance sheet
!
!
!2020
!2018<ref name=":6" />
!2021
!2019<ref name=":7" />
!2022
!2020<ref name=":8" />
!2021<ref name=":3" />
!2022<ref name=":3" />
|-
|-
|Currency
|Currency
|$
|USD
|$
|USD
|$
|USD
|USD
|USD
|-
|-
|ASSETS
|Year since incorporation
|
|13
|
|14
|
|15
|16
|17
|-
| colspan="6" |Assets
|-
|-
|Non-current assets
| colspan="6" |Non-current assets
|
|
|
|-
|-
|Exploration & evaluation assets
|Exploration & evaluation assets
|43,498,422
|160,887,260
|156,097,609
|156,097,609
|188,954,719
|188,954,719
|237,722,294
|237,722,294
|-
|Developed oil & gas assets
|13,736,007
|6,961,445
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|-
|Property, plant and equipment
|Property, plant and equipment
|2,237,698
|2,494,464
|658,898
|658,898
|30,308
|30,308
|91,691
|91,691
|-
|-
|
|Total non-current assets
|59,472,127
|170,343,169
|156,756,507
|156,756,507
|188,985,027
|188,985,027
|237,813,985
|237,813,985
|-
|-
|Current assets
| colspan="6" |Current assets
 
|-
Trade and other receivables
|Trade and other receivables
|700,939
|1,843,649
|74,167
|74,167
|109,876
|109,876
Line 296: Line 797:
|-
|-
|Cash and cash equivalents
|Cash and cash equivalents
|3,399,290
|1,853,986
|4,802,965
|4,802,965
|5,663,477
|5,663,477
|57,784,121
|57,784,121
|-
|-
|
|Total current assets
|4,100,229
|3,697,635
|4,877,132
|4,877,132
|5,773,353
|5,773,353
Line 306: Line 811:
|-
|-
|Total assets
|Total assets
|63,572,356
|174,040,804
|161,633,639
|161,633,639
|194,758,380
|194,758,380
|298,096,553
|298,096,553
|-
|-
|LIABILITIES
| colspan="6" |Liabilities
 
|-
Current liabilities
| colspan="6" |Current liabilities
|
|
|
|-
|-
|Convertible Bond – Debt
|Convertible Bond – Debt
|
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|10,001,704
|10,001,704
|-
|-
|Trade and other payables
|Trade and other payables
|316,976
|1,410,347
|388,092
|388,092
|1,107,090
|1,107,090
Line 328: Line 836:
|-
|-
|Provisions
|Provisions
|<nowiki>-</nowiki>
|1,335,863
|1,335,863
|1,335,863
|1,250,000
|1,250,000
Line 333: Line 843:
|-
|-
|Lease Liabilities
|Lease Liabilities
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|46,311
|46,311
|32,788
|32,788
Line 338: Line 850:
|-
|-
|Other Liabilities
|Other Liabilities
|
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|1,964,441
|1,964,441
|-
|-
|Deferred tax liability
|Deferred tax liability
|<nowiki>-</nowiki>
|10,025,763
|5,293,296
|5,293,296
|3,705,737
|3,705,737
|1,683,403
|1,683,403
|-
|-
|
|Total current liabilities
|316,976
|12,771,973
|7,063,562
|7,063,562
|6,095,615
|6,095,615
|25,373,271
|25,373,271
|-
|-
|Non-current liabilities
| colspan="6" |Non-current liabilities
|
|
|
|-
|-
|Lease Liabilities
|Lease Liabilities
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|27,914
|27,914
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
Line 363: Line 880:
|-
|-
|Convertible Bond – Debt
|Convertible Bond – Debt
|
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|20,474,664
|20,474,664
|-
|-
|Convertible Bond – Derivative
|Convertible Bond – Derivative
|
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|12,816,226
|12,816,226
|-
|-
|
|Total non-current liabilities
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|27,914
|27,914
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
Line 378: Line 901:
|-
|-
|Total liabilities
|Total liabilities
|316,976
|12,771,973
|7,091,476
|7,091,476
|6,095,615
|6,095,615
Line 383: Line 908:
|-
|-
|Net assets
|Net assets
|63,255,380
|161,268,831
|154,542,163
|154,542,163
|188,662,765
|188,662,765
|239,402,388
|239,402,388
|-
|-
|EQUITY
| colspan="6" |Equity
|
|
|
|-
|-
|Capital and reserves
| colspan="6" |Capital and reserves
|
|
|
|-
|-
|Share capital
|Share capital
|3,852,673
|7,966,075
|8,568,721
|8,568,721
|9,739,203
|9,739,203
Line 403: Line 926:
|-
|-
|Share premium
|Share premium
|106,678,805
|164,044,720
|173,687,092
|173,687,092
|208,683,936
|208,683,936
Line 408: Line 933:
|-
|-
|Retained losses
|Retained losses
|(48,137,398)
|(12,630,316)
|(29,608,911)
|(29,608,911)
|(36,331,398)
|(36,331,398)
Line 413: Line 940:
|-
|-
|Currency reserve
|Currency reserve
|(41,554)
|(220,838)
|(268,637)
|(268,637)
|1,234,562
|1,234,562
Line 418: Line 947:
|-
|-
|Share based payment reserve
|Share based payment reserve
|902,854
|2,163,898
|2,163,898
|2,163,898
|5,336,462
|5,336,462
|11,776,246
|11,776,246
|-
|Non controlling interests
|<nowiki>-</nowiki>
|(54,708)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|-
|Shareholders’ equity
|Shareholders’ equity
|63,255,380
|161,268,831
|154,542,163
|154,542,163
|188,662,765
|188,662,765
Line 432: Line 972:
|+Cash flow
|+Cash flow
!Year
!Year
!2020
!2018<ref name=":6" />
!2021
!2019<ref name=":7" />
!2022
!2020<ref name=":8" />
!2021<ref name=":3" />
!2022<ref name=":3" />
|-
|-
|Currency
|Currency
|$
|USD
|$
|USD
|$
|USD
|USD
|USD
|-
|Year since incorporation
|13
|14
|15
|16
|17
|-
|-
|Net outflow from operating activities
|Net outflow from operating activities
|(2,082,803)
|(5,513,085)
|(5,707,802)
|(5,707,802)
|(3,098,495)
|(3,098,495)
|(941,506)
|(941,506)
|-
|-
|Cash flows from investing activities
| colspan="6" |Cash flows from investing activities
|
|
|
|-
|-
|Interest received
|Interest received
|6,858
|25,781
|25,881
|25,881
|4,295
|4,295
Line 457: Line 1,009:
|-
|-
|Funds used for drilling, exploration and leases
|Funds used for drilling, exploration and leases
|(10,679,594)
|(10,579,750)
|(1,591,591)
|(1,591,591)
|(24,973,399)
|(24,973,399)
|(45,267,175)
|(45,267,175)
|-
|Developed oil & gas assets
|(495,183)
|(523,934)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|Decommissioning Provision (Exploration & Evaluation)
|<nowiki>-</nowiki>
|676,464
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|Decommissioning Provision (Developed Oil & Gas Assets)
|<nowiki>-</nowiki>
|409,400
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|-
|Advance for Performance Bond
|Advance for Performance Bond
|
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|(2,400,000)
|(2,400,000)
|-
|-
|Property, plant and equipment
|Property, plant and equipment
|
|208,682
|(312,637)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|(3,368)
|(3,368)
|-
|Acquisition of a subsidiary (Great Bear), net of cash acquired
|<nowiki>-</nowiki>
|(6,098,215)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|Acquisition of a subsidiary, (Vision Resources LLC) net of cash acquired
|<nowiki>-</nowiki>
|1,920
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|-
|-
|Disposal
|Disposal
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|(1,134)
|(1,134)
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
Line 477: Line 1,072:
|-
|-
|Net cash outflow from investing activities
|Net cash outflow from investing activities
|(10,959,237)
|(16,400,971)
|(1,566,844)
|(1,566,844)
|(24,969,105)
|(24,969,105)
|(47,627,869)
|(47,627,869)
|-
|-
|Cash flows from financing activities
| colspan="6" |Cash flows from financing activities
|
|
|
|-
|-
|Proceeds from share issues
|Proceeds from share issues
|12,596,484
|21,259,057
|10,816,383
|10,816,383
|30,181,084
|30,181,084
Line 492: Line 1,088:
|-
|-
|Issue costs paid in cash
|Issue costs paid in cash
|(537,360)
|(890,304)
|(571,364)
|(571,364)
|(1,197,275)
|(1,197,275)
Line 497: Line 1,095:
|-
|-
|Proceeds from Convertible Bond
|Proceeds from Convertible Bond
|
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|55,000,000
|55,000,000
|-
|-
|Repayment of borrowing and leasing liabilities
|Repayment of borrowing and leasing liabilities
|<nowiki>-</nowiki>
|<nowiki>-</nowiki>
|(21,394)
|(21,394)
|(55,698)
|(55,698)
Line 507: Line 1,109:
|-
|-
|Net cash inflow from financing activities
|Net cash inflow from financing activities
|12,059,124
|20,368,753
|10,223,625
|10,223,625
|28,928,111
|28,928,111
Line 512: Line 1,116:
|-
|-
|Increase in cash & cash equivalents
|Increase in cash & cash equivalents
|(982,916)
|(1,545,304)
|2,948,979
|2,948,979
|860,511
|860,511
Line 517: Line 1,123:
|-
|-
|Cash and cash equivalents at the beginning of the year
|Cash and cash equivalents at the beginning of the year
|4,382,206
|3,399,290
|1,853,986
|1,853,986
|4,802,965
|4,802,965
Line 522: Line 1,130:
|-
|-
|Cash and cash equivalents at the end of the year
|Cash and cash equivalents at the end of the year
|3,399,290
|1,853,986
|4,802,965
|4,802,965
|5,663,476
|5,663,476
Line 528: Line 1,138:


== 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. 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'.
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. 0.55)<ref name=":4">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 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. 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 'medium'.


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 ccc.
The key risks can be found below. For us, currently, the biggest risk to the valuation of the company relates to the ability to adequately source sufficient funding to meet the company’s working capital requirements (i.e. liquidity risk).  
=== The group may be unable to meet its lease obligations ===
In general, the group's properties are held under oil and gas leases. The terms of the group's leases often provide for yearly rental payments. Such yearly rentals may vary depending upon the particular lease and whether the group has commenced activities in the property. If the group defaults on its lease payments, its leases may be automatically terminated. If the group is unable to make these payments and its leases are terminated, there could be a material adverse effect on its business, financial condition and results of operations. Managing the lease position is of material importance for the group, and management devote considerable time to lease management, budgeting and planning, consulting with the State of Alaska where required. In 2020 Pantheon was awarded Units on the Alkaid and Talitha projects and has been an active participant in the annual lease sales over recent years, significantly strengthening Pantheon’s lease portfolio. The 40,000 leases successfully bid for in the November 2022 have a 10-year life, $10 per acre rentals and low royalties of between 12.5% – 16.7% to the State of Alaska.  


=== The group may be unable to renew and/or extend its leases once they expire  ===
# '''Liquidity Risk:''' The primary liquidity risk is the ability to adequately source sufficient funding to meet the company’s working capital requirements. Funding availability, and hence risk, within the capital markets remains volatile.<ref name=":3" />
The group's lease agreements contain terms whereby the lease may be terminated if the group does not fulfil certain obligations. These obligations include conducting exploration and/or production activities. If the group is unable to satisfy these conditions on a timely basis, it may lose its rights in these properties. In addition, given that it may not be able to renew certain leases unless it begins exploration or production activities within specific timeframes, the group may be required to invest significant funds at timetables not optimal in order to meet the capital requirements as per the terms of the leases. If the group is unable to meet its obligations under the terms of its leases, there could be a material adverse effect on its business, financial condition and results of operations. To mitigate this risk the group has successfully applied for and been granted unitization for the leases that comprise its Talitha and Alkaid projects. Unitization recognizes that the group has established, to the State’s satisfaction, that all or part of multiple potential hydrocarbon accumulations are included in the unit areas to allow the leases to potentially be held beyond the initial lease term. Most of Pantheon’s lease position is now covered by these units or leases of between c.7 years or more of remaining life. Management has materially reduced the risk of lease expiry.  
# '''Oil & Gas Price Risk:''' Future oil and gas sales revenues are subject to the volatility of the underlying commodity prices throughout the year. Over the past year the energy sector has been impacted by volatility in commodity prices, which may continue to impact the group going forward.<ref name=":3" />
# '''Currency Risk:''' Most capital expenditures for the year (and future years), as well as possible future operational revenues from oil sales were or will be denominated in US dollars. The group keeps the majority of its cash resources denominated in US dollars to minimise volatility and foreign currency risk.<ref name=":3" />
# '''Credit Risk:''' The group’s credit risk is primarily attributable to its cash balances. The credit risk on liquid funds is limited because the third parties are large banks with a minimum investment grade credit rating. The group’s total credit risk amounts to the total of other receivables and cash and cash equivalents.<ref name=":3" />
# '''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.<ref name=":3" />
# '''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 unitisation for certain projects to possibly extend their initial lease term.<ref name=":3" />
# '''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.<ref name=":3" />
# '''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.<ref name=":3" />
# '''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.<ref name=":3" />
# '''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.<ref name=":3" />
# '''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.<ref name=":3" />
# '''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 minimise disruptions.<ref name=":3" />


=== The group's operations require it to obtain licensing, planning permissions and other consents ===
== Valuation ==
The development of its current and future leases may be dependent upon the receipt of planning permission from the appropriate local authorities, as well as other necessary consents, such as environmental permits and regulatory consents. Obtaining the necessary consents and approvals may be costly, and they may not be granted, may be withdrawn or made subject to limitations and conditions. Certain permits and consents may also become contentious in the future, which may lead to these not being granted or withdrawn.  The failure to gain such permissions or gain such permissions on terms or at a cost acceptable to the group, may limit the group in its ability to develop and extract value from its leases and could have a material adverse effect on its business, results of operations, financial conditions and prospects. To manage the risk, the group employs experienced and qualified personnel who have successfully obtained licenses and permits in the past, and who maintain working relationships with regulatory agencies.


=== Political conditions and government regulations could change and have a material effect on the group's results of operations ===
=== Absolute Valuation  ===
Although political conditions in the Northern Slope Borough, the State of Alaska and the United States federal government are generally stable, changes may occur in their political, fiscal and/or legal systems, which might adversely affect the group's operations. The group's strategy has been formulated in the light of the current regulatory environment and probable future changes to the regulatory regime. In 2021 the federal government has adopted a more cautionary position with respect to operations on federal land, notably with respect to ConocoPhillips’ Willow project. Pantheon’s projects are all located on state, not federal land, and so has not been impacted by such politics.


Although the group believes that its activities are currently carried out in accordance with all applicable rules and regulations, no assurance can be given that new rules, laws and regulations will not be enacted, or that existing or future rules and regulations will not be applied in a manner which could serve to limit or curtail exploration or development of the group's business or have an otherwise negative impact on its activities. Amendments to existing rules, laws and regulations governing the group's operations and activities, or increases in or more stringent enforcement, implementation or interpretation thereof, could have a material adverse impact on the group's business, results of operations and financial condition.  
==== What's the expected return of an investment in the company? ====
The Stockhub users estimate that the expected return of an investment in the company over the next five years is ccc%, which equates to an annual return of ccc%. In other words, an £1,000 investment in the company is expected to return £ccc in five years time. The assumptions used to estimate the return figure can be found in the table below.


=== Future legal proceedings could adversely affect the group's business, results of operations or financial condition ===
Assuming that a suitable return level over five years is ccc% per year or less, and Pantheon Resources achieves its expected return level (of ccc%), then an investment in the company is considered to be an 'suitable' one.
The group may face legal proceedings that may result in the group having to pay material damages and/or other remedies. While the group would assess the merits of each legal proceeding and defend the group accordingly, it may be required to incur significant expenses or devote significant resources to defend against such legal proceedings. In addition, legal proceedings are also difficult to predict, which may force the group to enter into settlement arrangements even in the absence of any culpability from its part. 
{| class="wikitable"
|+Net present values of core company projects
!Project
!Net present value ($million)
!Comment
|-
|Greater Alkaid
|$595 million<ref>chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/<nowiki>http://www.pantheonresources.com/investors/presentations/645-investor-presentation-january-2020/file</nowiki></ref>
|
|-
|Talitha
|N/A
|
|-
|Theta West
|N/A
|
|-
|Total
|$595 million
|
|}


Furthermore, the adverse publicity surrounding legal proceedings may negatively affect the group's relation with local communities, government and non-government organizations, which could also impact the group's activities. As a result, legal proceedings could have a material adverse effect on the group's business, financial condition, results of operations and prospects. To manage this risk the group consults legal counsel when it faces potential legal proceedings. The board and management consult legal counsel when conducting activities or entering into agreements that are viewed to have the potential to give rise to material legal proceedings.
==== What are the assumptions used to estimate the return? ====
ccc


=== Failure to manage relationships with local communities, environmental groups and non-government organizations could adversely affect the group's future growth potential ===
==== Sensitivity analysis ====
The activities of oil and gas companies often face scrutiny from the public and receive negative publicity. Although the group's operations are not located in or near large communities, the group's ability to further expand its operation may be hindered by communities that may regard oil and gas activities as detrimental to their environmental, economic or social circumstances. Furthermore, oil and gas companies are also increasingly facing scrutiny by environmental groups regarding the effect operations may have on the animal life in the region. Negative reaction to its operations could have a material adverse impact on the cost, profitability, ability to finance or even the viability of an operation. Such events could give rise to material reputational damage. 
The main inputs that result in the greatest change in the expected return of the Pantheon Resources investment are, in order of importance (from highest to lowest):


These disputes are not always predictable and may cause disruption to projects or operations. Failure to manage relationships with local communities, environmental groups and non-governmental organisations may adversely affect the group's reputation, as well as its ability to commence production projects in certain locations, which could in turn affect its long-term prospects and the group's business, financial condition and results of operations. The group’s current leased acreage is not in the immediate vicinity of any local community. To manage this risk the group ensures it conducts operations in a legal and responsible manner and complies with rules and regulations.  
# The size of the total addressable market (the default size is $ccc);
# Pantheon Resources peak market share (the default share is ccc%); and
# The discount rate (the default time-weighted average rate is ccc%).


=== Any change to government regulation/administrative practices may have a negative impact on the group's ability to operate and its future profitability ===
The impact of a 50% change in those main inputs to the expected return of the Pantheon Resources investment is shown in the table below.
The business of oil and gas exploration and development is subject to substantial regulation under federal, state, local laws relating to the exploration for and the development of upgrading, marketing, pricing, taxation, and transportation of oil and gas and related products and other matters. Amendments to current laws and regulations governing operations and activities of oil and gas exploration and development operations could have a material adverse impact on the group's business. In addition, there can be no assurance that tax laws, royalty regulations and government incentive programs related to the group's oil and gas properties and the oil and gas industry generally, will not be changed in a manner which may adversely affect the group's prospects and cause delays, inability to explore and develop or abandonment of these interests.  


Furthermore, permits, leases, licenses and approvals are required from a variety of regulatory authorities at various stages of exploration and development. There can be no assurance that the various government permits, leases, licenses and approvals sought will be granted in respect of the group's activities or, if granted, will not be cancelled, or will be renewed upon expiry. There is no assurance that such permits, leases, licenses and approvals will not contain terms and provisions which may adversely affect the group's exploration and development activities. If any of the forgoing were to occur, it could have a material adverse effect on the group's business, financial condition and results of operations. To manage the risk, the group employs experienced personnel and contractors who have successfully obtained licenses and permits in the past, and who maintain working relationships with regulatory agencies and monitor changes that could impact the group. 
{| class="wikitable sortable"
|+Pantheon Resources investment expected return sensitivity analysis
!Main input
!50% worse
!Unchanged
!50% better
|-
|The discount rate
|ccc%
|ccc%
|ccc%
|-
|The size of the total addressable market
|ccc%
|ccc%
|ccc%
|-
|Pantheon Resources peak market share
|ccc%
|ccc%
|ccc%
|}


=== COVID, Supply chain and inflationary risk ===
== Appendix ==
The impact of the Covid-19 pandemic on global supply chains is a well-documented phenomenon which has affected many industries globally, including the oil and gas sector. This has been exacerbated by the Russia/Ukraine conflict and the high oil and gas prices which resulted in high demand for equipment, service providers and materials. Additionally, services and materials costs have experienced very high inflation. As a result, the lead times, availability and costs for the equipment and consumables required for drilling in Alaska have increased over the last 12 months. To manage this risk it is important that key equipment and materials are ordered on a timely basis so as to minimise the potential for supply chain disruption to drilling operations, and that well operations are carefully planned, to try to minimise cost inflation where possible.  


== Valuation ==
=== Cost of equity ===
{| class="wikitable"
|+Cost of equity
!Input
!Input value
!Additional information
|-
|Risk-free rate (%)
|4.297%
|Here, the risk free rate is the US 30 year treasury bond, and is calculated as at 3rd September 2023. Research suggests that for the risk-free rate, it's best to use one that has the same or similar maturity to the estimated remaining lifespan of the company. Here, we have assumed that the estimated lifespan of the company is 30 years years or longer, so we have used the longest maturity, which is 30 years.
|-
|Beta
|0.5508
|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.
|-
|Equity risk premium (%)
|7.98%
|Research suggests that for the region of equity risk premium, it's best to use one that is the same or similar to the region of the beta market portfolio. Here, the region of the beta market portfolio is the world/global, so we have used the world/global region for the equity risk premium, and is calculated as at 5th January 2023.
|-
|Cost of equity (%)
|8.69%
|Cost of equity = Risk-free rate + Beta x Equity risk premium.
|}


=== Absolute Valuation  ===
=== Relative valuation ===
As noted earlier in this report, research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach, so that's the approach that Stockhub suggests using to determine the estimated value of the company (the valuation based on the discounted cash flow approach can be found in the valuation section of this report); nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the relative valuation approach.


== Appendix ==
==== What's the expected return of an investment in Pantheon Resources using the relative valuation approach? ====
Stockhub estimates that the expected return of an investment in Pantheon Resources over the next 12-months is 185%. In other words, an £1,000 investment in the company is expected to return £2,849 in one year time. The assumptions used to estimate the return figure can be found in the table below.


=== Relative valuation ===
==== What are the assumptions used to estimate the return figure? ====
ccc
ccc
{| class="wikitable"
|+Key inputs
!Description
!Value
!Commentary
|-
|Which type of multiple do you want to use?
|Price-to-book value
|The price-to-book value is really the only available commonly used value, so we suggest using that.
|-
|In regards to the price-to-book value multiple, for the book value figure, which year to you want to use?
|Year 1
|Research suggests that when using the relative valuation approach, it's best to use a time period of 12 months or less. Accordingly, for the book value figure, we suggest using Year 1, which is on 12th September 2024.
|-
|In regards to the price-to-book value multipl, what multiple figure do you want to use?
|1.54x
|Here, we suggest using a multiple of 1.54x, which is in-line with the multiples of Pantheon Resources's peers (for details on the peers can be found in the table below).
|-
|What is the estimated compound annual growth rate of the book value between one year from now and the most recent value?
|46.37%
|One year from now is 12th September 2024, and the most recent book value date is 31st December 2022. For simplicity, we based the estimate on the CAGR of Pantheon Resources over the last five years, which is 46.37%. The most recent value is $248,178,354 (as at 31st December 2022).
|-
|What's the current market capitalisation of the company?
|£205.44 million
|As at 12th September 2023, the market capitalisation of Pantheon Resources Plc is £205.44 million.
|-
|Which time period do you want to use to estimate the expected return?
|Between now and one year time
|Research suggests that when using the relative valuation approach, it's best to estimate the expected return of the company between now and one year time.
|-
|What's the FX rate?
|$1.25
|The current FX rate of GBPUSD is $1.25.
|}
{| class="wikitable"
|+Peers analysis
!
!Market capitalisation (local)
!Cash
!Debt
!Enterprise value
!Proved reserves
!Probable reserves
!Possible reserves
!EV/Proved Reserves
!EV/Proved + Probable Reserves
!EV/Proved + Probable + Possible Reserves
|-
|Pantheon Resources Plc
|
|
|
|
|
|
|
|
|
|
|-
|88 Energy Limited
|
|
|
|
|
|
|
|
|
|
|-
|Brookside Energy Limited
|
|
|
|
|
|
|
|
|
|
|-
|Diversified Gas & Oil PLC
|
|
|
|
|
|
|
|
|
|
|-
|ConocoPhillips
|
|
|
|
|
|
|
|
|
|
|}
{| class="wikitable"
|+Local peers - BICS Best Fit (Algorithm)
!Name
!Ticker
!2Y Corr
!Mkt Cap (USD)
!BF P/E
!BF EV/EBITDA
!BF EV/EBIT
!BF EV/Rev
!LF P/BV
|-
|Pantheon Resources  PLC
|PANR LN
|
|248763255.1
| --
| --
| --
| --
|0.8599
|-
|EnQuest PLC
|ENQ LN
|0.2638
|342484769.1
|1.3755
|1.4467
|2.0561
|0.9302
|0.7375
|-
|Harbour Energy PLC
|HBR LN
|0.2596
|2362103778
|6.4952
|0.9316
|1.8074
|0.6763
|1.6824
|-
|Serica Energy PLC
|SQZ LN
|0.223
|1227222775
| --
| --
| --
| --
|1.7056
|-
|Gulf Keystone Petroleum Ltd
|GKP LN
|0.2189
|250637412.4
|2.1706
|0.9949
|1.756
|0.6632
|0.453
|-
|OKEA ASA
|OKEA NO
|0.2091
|372011265.3
|3.0588
|0.3939
|0.5296
|0.2736
|1.8361
|-
|BLUENORD ASA
|BNOR NO
|0.2079
|1243069610
|7.3107
|2.866
|3.71
|1.9001
|1.7456
|-
|Tullow Oil PLC
|TLW LN
|0.1981
|666476192.9
|2.2878
|2.685
|3.7652
|2.0689
| --
|-
|DNO ASA
|DNO NO
|0.1976
|921463861.7
|5.3441
|1.3689
|1.9461
|0.8614
|0.7003
|-
|Genel Energy Plc
|GENL LN
|0.1923
|287304379.2
|0.4852
|1.2792
|9.3474
|0.8072
|0.6281
|-
|Capricorn Energy PLC
|CNE LN
|0.0962
|283070688.1
| --
| --
| --
| --
|0.2424
|-
| colspan="3" |Mean   (Including PANR LN)
|745873453.2
|4.0061
|1.4958
|3.1147
|1.0226
|1.0214
|-
| colspan="4" |Current Premium to Comps Mean
| --
| --
| --
| --
| -15.8058
|}
{| class="wikitable"
|+North America peers - BICS Best Fit (Algorithm)
!Name
!Ticker
!2Y Corr
!Mkt Cap (USD)
!BF P/E
!BF EV/EBITDA
!BF EV/EBIT
!BF EV/Rev
!LF P/BV
|-
|Pantheon Resources  PLC
|PANR LN
|
|249401660.5
| --
| --
| --
| --
|0.8621
|-
|Bonterra Energy  Corp
|BNE CN
|0.2145
|201202900.1
|5.7932
| --
| --
|5.3528
|0.5485
|-
|Canacol Energy Ltd
|CNE CN
|0.2055
|291229291.5
|4.4749
|3.991
|6.2457
|2.7131
|0.8688
|-
|Journey Energy Inc
|JOY CN
|0.1826
|250649018.6
|10.0903
|3.2022
| --
| --
|1.1123
|-
|Gran Tierra Energy Inc
|GTE US
|0.1772
|242916614
|3.0209
|1.6716
|2.4108
|1.0112
|0.5344
|-
|Reconnaissance Energy Africa L
|RECO CN
|0.1628
|201636539
| --
| --
| --
| --
|3.7743
|-
|Evolution Petroleum Corp
|EPM US
|0.1535
|298752800.3
|9.5026
|5.339
|5.8633
|2.5077
|3.1245
|-
|Alvopetro Energy Ltd/CA
|ALV CN
|0.149
|258641189.1
|5.3166
| --
|5.022
|3.4221
|2.8451
|-
|Amplify Energy Corp
|AMPY US
|0.1002
|277732974.3
|1.8069
|4.1816
|6.8549
|1.2493
|0.7737
|-
|CGX Energy Inc
|OYL CN
|0.099
|239180966.5
| --
| --
| --
| --
|4.342
|-
|Global Tech Industries Group I
|GTII US
|0.0407
|290690567.5
| --
| --
| --
| --
|24.9919
|-
|Mean
|
|
|254730411.1
|4.407
|3.991
|5.6339
|2.3821
|1.4639
|-
|Current Premium to  Comps Mean
|
|
|
| --
| --
| --
| --
| -41.1063
|}
{| class="wikitable"
|+Global peers - Global Industry Classification Standard
!Name
!Ticker
!2Y Corr
!Mkt Cap (USD)
!BF P/E
!BF EV/EBITDA
!BF EV/EBIT
!BF EV/Rev
!LF P/BV
|-
|Pantheon Resources  PLC
|PANR LN
|
|248743297.3
| --
| --
| --
| --
|0.8599
|-
|Jadestone Energy PLC
|JSE LN
|0.2226
|256103808.5
|12.1425
|0.8699
|1.7002
|0.3279
|1.7301
|-
|Gulf Keystone Petroleum Ltd
|GKP LN
|0.2189
|250617304.2
|2.1706
|0.9949
|1.756
|0.6632
|0.4529
|-
|Genel Energy Plc
|GENL LN
|0.1924
|287281329.3
|0.4852
|1.2792
|9.3474
|0.8072
|0.6281
|-
|Journey Energy Inc
|JOY CN
|0.1826
|250722843.5
|10.0903
|3.2022
| --
| --
|1.1123
|-
|Gran Tierra Energy Inc
|GTE US
|0.1772
|242916614
|3.0209
|1.6716
|2.4108
|1.0112
|0.5344
|-
|Alvopetro Energy Ltd/CA
|ALV CN
|0.149
|258717367.9
|5.3166
| --
|5.022
|3.4221
|2.8451
|-
|Touchstone Exploration Inc
|TXP CN
|0.1276
|199349168.4
|16.338
|3.3236
|5.7614
|2.0963
|2.5903
|-
|La Francaise De L'energie SACA
|FDE FP
|0.1153
|227020391.8
|11.7018
|7.3477
|9.0049
|4.3978
|2.8113
|-
|Amplify Energy Corp
|AMPY US
|0.1002
|277732974.3
|1.8069
|4.1816
|6.8549
|1.2493
|0.7737
|-
|CGX Energy Inc
|OYL CN
|0.099
|239251413.6
| --
| --
| --
| --
|4.342
|-
|Capricorn Energy PLC
|CNE LN
|0.0962
|283047977.8
| --
| --
| --
| --
|0.2423
|-
|Coelacanth Energy Inc
|CEI CN
|0.0954
|260548386.6
| --
| --
| --
| --
|3.7122
|-
|Kistos Holdings PLC
|KIST LN
|0.0891
|253019056.7
| --
| --
| --
| --
|2.2992
|-
|Cohen Development Gas & Oil Lt
|CDEV IT
|0.0795
|211048552.1
| --
| --
| --
| --
|6.5187
|-
|Hindustan Oil Exploration Co L
|HOE IN
|0.0428
|255827680.6
| --
| --
| --
| --
|2.2394
|-
| colspan="3" |Mean   (Including PANR LN)
|250121760.4
|9.0748
|2.7631
|5.3661
|2.0603
|1.4934
|-
| colspan="4" |Current Premium to Comps Mean
| --
| --
| --
| --
| -42.4215
|}
{| class="wikitable"
|+North America - Global Industry Classification Standard
!Name
!Ticker
!2Y Corr
!Mkt Cap (USD)
!BF P/E
!BF EV/EBITDA
!BF EV/EBIT
!BF EV/Rev
!LF P/BV
|-
|Pantheon Resources  PLC
|PANR LN
|
|248743297.3
| --
| --
| --
| --
|0.8599
|-
|Saturn Oil & Gas  Inc
|SOIL CN
|0.2403
|289188348.4
|1.6041
|0.8074
| --
|0.6336
|0.6728
|-
|Bonterra Energy Corp
|BNE CN
|0.2145
|201232526.3
|5.7932
| --
| --
|5.3528
|0.5485
|-
|Canacol Energy Ltd
|CNE CN
|0.2055
|291272173.8
|4.4749
|3.991
|6.2457
|2.7131
|0.8688
|-
|Journey Energy Inc
|JOY CN
|0.1826
|250685925.6
|10.0903
|3.2022
| --
| --
|1.1123
|-
|Gran Tierra Energy Inc
|GTE US
|0.1772
|242916614
|3.0209
|1.6716
|2.4108
|1.0112
|0.5344
|-
|Reconnaissance Energy Africa L
|RECO CN
|0.1628
|201666229.1
| --
| --
| --
| --
|3.7743
|-
|Evolution Petroleum Corp
|EPM US
|0.1535
|298752800.3
|9.5026
|5.339
|5.8633
|2.5077
|3.1245
|-
|Alvopetro Energy Ltd/CA
|ALV CN
|0.149
|258679272.9
|5.3166
| --
|5.022
|3.4221
|2.8451
|-
|Lucero Energy Corp
|LOU CN
|0.132
|324574582.1
|6.5686
|2.2905
|4.647
|1.4365
|0.9152
|-
|Touchstone Exploration Inc
|TXP CN
|0.1276
|199319815.1
|16.338
|3.3236
|5.7614
|2.0963
|2.5903
|-
|Amplify Energy Corp
|AMPY US
|0.1002
|277732974.3
|1.8069
|4.1816
|6.8549
|1.2493
|0.7737
|-
|CGX Energy Inc
|OYL CN
|0.099
|239216184.9
| --
| --
| --
| --
|4.342
|-
|Coelacanth Energy Inc
|CEI CN
|0.0954
|260510022
| --
| --
| --
| --
|3.7122
|-
|San Juan Basin Royalty Trust
|SJT US
|0.08
|309016317.5
| --
| --
| --
| --
|81.0503
|-
|Empire Petroleum Corp
|EP US
|0.0627
|181790240
| --
| --
| --
| --
|9.6501
|-
|Mean   (Including PANR LN)
|
|
|254706082.7
|8.384
|2.7073
|5.6339
|1.945
|1.5358
|-
|Current Premium to Comps Mean
|
|
|
| --
| --
| --
| --
| -44.0125
|}
==== Sensitivity analysis ====
The main inputs that result in the greatest change in the expected return of the Pantheon Resources investment are, in order of importance (from highest to lowest):
# The compound annual growth rate of the Pantheon Resources book value (the default figure is 46.37%);
# The price-to-book value multiple (the default multiple 1.57x); and
# Pantheon Resources most recent book value figure (the default figure is $248,178,354, or £198,542,683 at the current exchange rate of $1.25).
The impact of a 50% change in those main inputs to the expected return of the Pantheon Resources investment is shown in the table below.
{| class="wikitable sortable"
|+Pantheon Resources investment expected return sensitivity analysis
!Main input
!50% worse
!Unchanged
!50% better
|-
|The compound annual growth rate of the Pantheon Resources book value between one year ahead and the most recent value
|113%
|185%
|266%
|-
|The price-to-book value multiple
|42%
|185%
|327%
|-
|Pantheon Resources most recent book value figure
|42%
|185%
|327%
|}


=== Significant holdings ===
=== Significant holdings ===
Line 580: Line 2,066:
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.  </ref>
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><ref>https://www.pantheonresources.com/investors/significant-holdings</ref>
!                 
!                 
!Number of Ordinary Shares
!Number of Ordinary Shares
Line 615: Line 2,101:


=== Capital structure ===
=== Capital structure ===
The Company has 907,206,399 ordinary fully paid shares in issue.  
The Company has 919,111,769 ordinary fully paid shares in issue.<ref name=":12" /> The number of ordinary shares not in public hands amounts to 6,956,691<ref name=":5">https://www.pantheonresources.com/investors/capital-structure</ref>, equivalent to 0.76% of the issued allotted and fully paid ordinary shares.<ref>The calculation here is 6,956,691 divided by 919,111,769.</ref>
 
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<ref name=":5" />
!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 654: Line 2,135:
|+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><ref name=":5" />
!Exercise price (£)
!Exercise price (£)
!Number of share warrants exercisable into non-voting shares
!Number of share warrants exercisable into non-voting shares
Line 664: Line 2,145:
|30 September 2024
|30 September 2024
|1.29%
|1.29%
|}
=== Beta risk profile ===
{| class="wikitable"
|+
!Beta value
!Risk rating
|-
|style="background: green; color: white;" |0 to 0.50
|style="background: green; color: white;" | Low
|-
|style="background: orange; color: white;" | 0.50 to 1.50
|style="background: orange; color: white;" | Medium
|-
|style="background: red; color: white;" | 1.50 to 3.00
|style="background: red; color: white;" | High
|-
|style="background: purple; color: white;" | 3.00 and above
|style="background: purple; color: white;" | Extremely high
|}
=== Pantheon Resources beta calculation ===
{| class="wikitable"
|+Pantheon Resources beta calculation
!Date
!iShares MSCI World ETF unit price (USD)
!Pantheon Resources plc share price (GBP)
!iShares MSCI World ETF unit price change (%)
!Pantheon Resources plc share price change (%)
|-
|01/10/2018
|85.25
|16.24
|
|
|-
|01/11/2018
|86.21
|17.1
|1%
|5%
|-
|01/12/2018
|78.87
|16
| -9%
| -6%
|-
|01/01/2019
|84.96
|23.375
|8%
|46%
|-
|01/02/2019
|87.49
|24.75
|3%
|6%
|-
|01/03/2019
|88.79
|28.6
|1%
|16%
|-
|01/04/2019
|92.09
|21.425
|4%
| -25%
|-
|01/05/2019
|86.76
|21.25
| -6%
| -1%
|-
|01/06/2019
|91.02
|21.25
|5%
|0%
|-
|01/07/2019
|91.86
|18.68
|1%
| -12%
|-
|01/08/2019
|89.84
|17.9
| -2%
| -4%
|-
|01/09/2019
|91.78
|16.03
|2%
| -10%
|-
|01/10/2019
|94.12
|16.25
|3%
|1%
|-
|01/11/2019
|96.76
|16.5
|3%
|2%
|-
|01/12/2019
|98.78
|16.5
|2%
|0%
|-
|01/01/2020
|97.73
|16.5
| -1%
|0%
|-
|01/02/2020
|89.67
|11.95
| -8%
| -28%
|-
|01/03/2020
|77.93
|13
| -13%
|9%
|-
|01/04/2020
|86.36
|13.75
|11%
|6%
|-
|01/05/2020
|90.7
|15.95
|5%
|16%
|-
|01/06/2020
|92.14
|13.775
|2%
| -14%
|-
|01/07/2020
|96.65
|21.15
|5%
|54%
|-
|01/08/2020
|102.96
|22.35
|7%
|6%
|-
|01/09/2020
|99.52
|37.2
| -3%
|66%
|-
|01/10/2020
|96.53
|31
| -3%
| -17%
|-
|01/11/2020
|108.94
|37.4
|13%
|21%
|-
|01/12/2020
|112.41
|43.5
|3%
|16%
|-
|01/01/2021
|111.49
|36.3
| -1%
| -17%
|-
|01/02/2021
|114.27
|39.1
|2%
|8%
|-
|01/03/2021
|118.49
|35.7
|4%
| -9%
|-
|01/04/2021
|123.61
|34.25
|4%
| -4%
|-
|01/05/2021
|125.6
|29.4
|2%
| -14%
|-
|01/06/2021
|126.57
|41.25
|1%
|40%
|-
|01/07/2021
|128.83
|55.3
|2%
|34%
|-
|01/08/2021
|132.02
|59.7
|2%
|8%
|-
|01/09/2021
|126.46
|71.6
| -4%
|20%
|-
|01/10/2021
|133.84
|77.6
|6%
|8%
|-
|01/11/2021
|131.1
|69.6
| -2%
| -10%
|-
|01/12/2021
|135.32
|77.3
|3%
|11%
|-
|01/01/2022
|128.32
|79.6
| -5%
|3%
|-
|01/02/2022
|124.58
|142
| -3%
|78%
|-
|01/03/2022
|128.16
|117.6
|3%
| -17%
|-
|01/04/2022
|117.42
|123.2
| -8%
|5%
|-
|01/05/2022
|117.94
|100.6
|0%
| -18%
|-
|01/06/2022
|106.88
|89.4
| -9%
| -11%
|-
|01/07/2022
|115.57
|117
|8%
|31%
|-
|01/08/2022
|110.28
|133.7
| -5%
|14%
|-
|01/09/2022
|99.95
|104.1
| -9%
| -22%
|-
|01/10/2022
|107.42
|100.1
|7%
| -4%
|-
|01/11/2022
|115.44
|72.95
|7%
| -27%
|-
|01/12/2022
|109.25
|42.52
| -5%
| -42%
|-
|01/01/2023
|117.01
|50.15
|7%
|18%
|-
|01/02/2023
|113.98
|57.1
| -3%
|14%
|-
|01/03/2023
|117.67
|23.64
|3%
| -59%
|-
|01/04/2023
|119.79
|18.67
|2%
| -21%
|-
|01/05/2023
|118.6
|15.74
| -1%
| -16%
|-
|01/06/2023
|124.52
|12.71
|5%
| -19%
|-
|01/07/2023
|128.54
|10.8
|3%
| -15%
|-
|01/08/2023
|125.7
|25
| -2%
|131%
|-
|01/09/2023
|125.91
|22.42
|0%
| -10%
|}
{| class="wikitable"
|+Pantheon Resources beta and adjusted beta
!
!Pantheon Resources
|-
|Beta
|0.3262
|-
|Adjusted beta
|0.5508
|}
=== Glossary ===
ccc
{| class="wikitable"
|+Glossary
!Term
!Definition
|-
|/Net pay
|The net thickness of an <abbr>oil</abbr> <abbr>reservoir</abbr> which is capable of producing <abbr>hydrocarbons</abbr>.
|-
|AMI
|Area of mutual interest.
|-
|Anticline
|A <abbr>structure</abbr> in the subsurface in which rock layers have been folded to produce an arch or dome.
|-
|Appraisal well
|A well drilled to evaluate the extent of a discovery made by a previous well drilled on the same <abbr>trap</abbr>.
|-
|Barrel (BBL)
|A unit of measurement commonly used in quoting liquid hydrocarbon volumes.
* 1 barrel _ 42 U.S. gallons
* 35 imperial gallons (approx)
* 159 liters (approx)
|-
|Basin
|A depression in the earth's surface containing relatively thick deposits of sedimentary rocks.
|-
|BCF
|Billion cubic feet, or 28.317 cubic meters. A unit commonly used in quoting volumes of natural gas.
|-
|BCFG
|Billion cubic feet of gas.
|-
|Behind pipe
|A productive <abbr>reservoir</abbr> which is isolated from the well bore by the <abbr>casing</abbr>.
|-
|BHL
|Bottom hole location.
|-
|BO
|Barrel of <abbr>oil</abbr>.
|-
|BOE
|Barrel of <abbr>oil</abbr> equivalent. Used when converting oil and gas into an equivalent unit of volume. Typically, a figure of 6000 <abbr>CFG</abbr> per BBLO is used.
|-
|BOPD
|Barrels of <abbr>oil</abbr> per day, a unit commonly used to describe daily rates of liquids production from a flowing well.
|-
|BTU
|British Thermal Unit. A unit index of energy content in gas.
|-
|Casing
|Steel pipe which lines the well bore from surface. The <abbr>casing</abbr> isolates subsurface fluids from the well bore and prevents rock material from sloughing off the sides of the well bore.
|-
|CFG
|Cubic feet of gas
|-
|Charge risk
|A general term for <abbr>risk</abbr> that a source rock exists, that it has been is or still is generating <abbr>hydrocarbons</abbr>, that a <abbr>trap</abbr> was in place before generation , and that a conduit exists between the source rock and the <abbr>reservoir</abbr>.
|-
|Clastic
|A modifier describing rocks that were deposited by the mechanical action of water, i.e., being carried in suspension and then dropped when the energy in the flow becomes too weak to support the material. Typically, <abbr>sandstone</abbr> and <abbr>shale</abbr>.
|-
|Closure
|On an isolated structural high, the area enclosed by the lowest closing contour.
|-
|Condensate
|A hydrocarbon phase which separates out from natural gas and condenses into liquids when the <abbr>hydrocarbons</abbr> are produced.
|-
|Cretaceous
|Late Mesozoic time; roughly 140 to 65 million years ago.
|-
|Darcy
|1000 millidarcies (see definition for <abbr>mD</abbr> below).
|-
|Deposition
|The process of depositing unconsolidated <abbr>sediments</abbr>, usually in a <abbr>basin</abbr>.
|-
|DHC
|<abbr>Dry hole</abbr> cost. The cost of an unsuccessful well.
|-
|Dip
|The angle that a rock surface forms with respect to the horizontal. Can be referenced as degrees, in the case of depth, or, in the case of <abbr>seismic reflection</abbr> data, in time (e.g. milliseconds per km ).
|-
|Dipmeter
|A tool used in logging a well which measures the <abbr>dip</abbr> of rock surfaces in the borehole of the well.
|-
|DMO
|<abbr>Dip</abbr> Moveout . A correction applied to seismic trace processing to account for dip. (See dip above).
|-
|DOGGR
|California Department of Conservation/Division of <abbr>Oil</abbr>, Gas, and Geothermal Resources
|-
|Dry hole
|A well in which no commercial <abbr>hydrocarbons</abbr> were discovered.
|-
|Exploration well
|A well drilled into a previously undrilled or noncommercial <abbr>trap</abbr> to test for the presence of a new hydrocarbon accumulation.
|-
|Facies
|An association of rock types which share a common trait. In the case of sedimentary rocks, usually used with reference to the environment in which the <abbr>sediments</abbr> were deposited (for example, deltaic).
|-
|Fault
|Any brittle failure of rock layers along which rocks are displaced on one side relative to the other.
|-
|Fault trap
|A <abbr>structural trap</abbr> where at least one of the components of <abbr>closure</abbr> is formed by offset of rock layers across a <abbr>fault</abbr>.
|-
|Fold
|Deformation of a rock surface.
|-
|Formation
|A formal term used to reference a genetically related rock unit (e.g. the Monterey <abbr>Formation</abbr>).
|-
|Four way dip
|A simple <abbr>structure</abbr> in which rock surfaces <abbr>dip</abbr> in all four directions, thus creating structural <abbr>closure</abbr>. Often forms a hydrocarbon <abbr>trap</abbr>.
|-
|Geology
|The study of the earth and the processes affecting its crust.
|-
|Geophysics
|The study of rock properties and <abbr>stratigraphy</abbr> through the use of analytical methods involving various types of data collection and interpretation.
|-
|GIP
|Gas in place. The volume of natural gas stored in a subsurface accumulation . Differs from recoverable <abbr>reserves</abbr> in that some of this gas will not be recovered to the surface due to properties of the rock and/or gas, and in situ pressure.
|-
|GOR
|Gas-<abbr>oil</abbr> ratio: the volume of dissolved gas per barrel of oil.
|-
|Horizon
|A term describing a layer of rock, most typically associated with a <abbr>seismic reflection</abbr>.
|-
|Hydrocarbons
|A compound of the elements hydrogen and carbon, in either liquid or gaseous form. Natural gas and <abbr>petroleum</abbr> are mixtures of <abbr>hydrocarbons</abbr>.
|-
|Lithology
|The physical, sedimentary, or mineralogical characteristics of a rock.
|-
|Marine
|Used as a modifier of sedimentary rock to denote <abbr>deposition</abbr> in the ocean.
|-
|Mature
|Used in association with source rock. A description applied to organic rich rock which is capable, because of sufficient temperature and burial depth, of generating <abbr>hydrocarbons</abbr>.
|-
|mD
|Millidarcy , a unit of measurement used to describe <abbr>permeability</abbr>, i.e., the tendency for liquids to flow through a rock unit. A high permeability indicates a good <abbr>reservoir</abbr>.
|-
|Migration
|The movement of <abbr>hydrocarbons</abbr> from the source rock to the <abbr>reservoir</abbr>.
|-
|MMBLS
|Million barrels.
|-
|MMBO
|Million barrels of <abbr>oil</abbr>.
|-
|MMBTU
|Million British Thermal Units.
|-
|MMCFD
|Million cubic feet of gas per day. A measure of gas flow rates from a producing well.
|-
|Monte Carlo
|A methodology for estimating a given quantity based on the statistical distribution of input values on which the quantity depends. Typically, the output quantity is calculated several thousand times (each calculation is called a trial), for each trial using input parameter values extracted randomly according to their statistical distributions. The result is a statistical distribution of output values.
|-
|MSCF
|Thousand standard cubic feet at atmospheric conditions.
|-
|N/G
|Net to gross ratio. The percentage of a gross thickness of <abbr>reservoir</abbr> with sufficient <abbr>permeability</abbr> such that it is capable of flowing <abbr>hydrocarbons</abbr>.
|-
|Oil
|Liquid <abbr>hydrocarbons</abbr>, generally more viscous and darker in color than <abbr>condensates</abbr>.
|-
|oil field
|A subsurface accumulation of <abbr>hydrocarbons</abbr>.
|-
|oil window
|The depth interval in which source rock can actively generate mobile <abbr>oil</abbr>.
|-
|OIP
|<abbr>Oil</abbr> in place. The volume of oil held in a <abbr>reservoir</abbr> in the subsurface . Not all of this oil can be recovered.
|-
|OWC
|Oil-water contact, which marks the base of an <abbr>oil</abbr> accumulation.
|-
|P10
|In a <abbr>Monte Carlo</abbr> simulation, a measure of the high end expectation of a particular parameter's occurrence. For example, a <abbr>P10</abbr> net pay of 150 ft means that there is a 10 per cent. probability that at least 150 ft of net pay will be encountered in a given trial in the simulation.
|-
|P50
|In a <abbr>Monte Carlo</abbr> simulation, the median value of a particular parameter's occurrence. For example, a <abbr>P50</abbr> net pay of 50 ft means that half of the trials in the simulation encountered a value less than 50 ft.
|-
|P90
|In a <abbr>Monte Carlo</abbr> simulation, a measure of the low end expectation of a particular parameter's occurrence. For example, a <abbr>P90</abbr> net pay of 25 ft means that there is a 90 per cent. probability that at least 25 ft of net pay will be encountered in a given trial in the simulation.
|-
|Permeability
|A measure of the ability of liquids to flow through a porous solid. (See <abbr>mD</abbr> ).
|-
|Petroleum
|(See <abbr>Hydrocarbons</abbr>).
|-
|PINS
|Padre Island National Seashore.
|-
|Pipeline
|A pipe through which any hydrocarbon or its products is delivered to an end user.
|-
|Porosity
|The percentage of open pore space in a rock.
|-
|POS
|Probability of success (technical, as opposed to commercial).
|-
|Potentially Recoverable Hydrocarbons
|The volume of <abbr>hydrocarbons</abbr> that are estimated to be producible from a given <abbr>trap</abbr>. Used in the context of a <abbr>prospect</abbr> or an undeveloped hydrocarbon accumulation.
|-
|Prospect
|An undrilled or poorly understood, and therefore hypothetical, hydrocarbon <abbr>trap</abbr>.
|-
|PSDM
|Pre-stack depth <abbr>migration</abbr>. A seismic processing technique which utilises rock velocity models to iteratively arrive at a depth converted seismic data volume.
|-
|PSTM
|Pre-stack time <abbr>migration</abbr>. A seismic processing technique which approximates <abbr>PSDM</abbr> but does not build a depth model. The seismic data volume is in two way travel time.
|-
|Reflector
|An event observed on a seismic section that usually corresponds to a buried rock surface.
|-
|Reserves
|The volume of <abbr>oil</abbr> or gas that can be recovered from the subsurface. Generally used in the context of commerciality.
|-
|Reservoir
|A porous rock unit in which <abbr>hydrocarbons</abbr> occur in an <abbr>oil</abbr> field.
|-
|Risk
|A measure of uncertainty relating to the likelihood of finding <abbr>hydrocarbons</abbr>, or, the likelihood that any or all of the individual geological elements required for the accumulation of hydrocarbons is met.
|-
|Sandstone
|A sedimentary rock composed primarily of sand sized grains, usually quartz. A common hydrocarbon <abbr>reservoir</abbr> rock.
|-
|SCF
|Standard cubic feet. See <abbr>MSCF</abbr>
|-
|Seal
|An impermeable rock unit that prevents <abbr>hydrocarbons</abbr> from escaping from the <abbr>reservoir</abbr>.
|-
|Sediment
|Generally, water borne debris that settles out of suspension.
|-
|Sediment rock
|A type of rock formed by aggregation of <abbr>sediments</abbr>.
|-
|Seismic reflection
|An event observed on seismic data that corresponds to a given rock layer in the subsurface.
|-
|Seismic survey
|A tool employing an energy source, such as dynamite, and recording devices used to measure the travel time from a rock layer to the surface. The primary tool used to detect hydrocarbon <abbr>traps</abbr>.
|-
|Shale
|A very fine grained rock often thinly layered. An important <abbr>seal</abbr> rock.
|-
|Show
|An indication while drilling that <abbr>hydrocarbons</abbr> are present in the well.
|-
|Silt/siltstone
|A rock whose grain size is intermediate between sand and <abbr>shale</abbr>.
|-
|Source/source rock
|An organic rich rock (typically <abbr>shale</abbr>) capable of generating <abbr>hydrocarbons</abbr> under certain conditions of temperature and pressure.
|-
|STB
|Stock tank barrel, the volume of a barrel of <abbr>oil</abbr> at the earth's surface as opposed to the corresponding volume in the subsurface.
|-
|Stratigraphy
|The study of the vertical and horizontal distribution of stratified rocks, with respect to their age, lateral equivalence, and environment of <abbr>deposition</abbr>.
|-
|Structural trap
|Generally, a hydrocarbon <abbr>trap</abbr> formed by dipping rock layers and/or <abbr>faults</abbr>.
|-
|Structure
|A geological feature usually higher in elevation than the surrounding rock, formed by local deformation of the rock layers.
|-
|TCF
|Trillion cubic feet of gas.
|-
|Tertiary
|A period of geological time from approximately 2 to 65 million years ago. Subdivided into the Pliocene, Miocene, Oligocene, Eocene, and Paleocene.
|-
|Total depth (TD)
|The final depth reached when drilling a well.
|-
|Trap
|A <abbr>structure</abbr> capable of retaining <abbr>hydrocarbons</abbr>.
|-
|Trend
|A particular direction in which similar geological features are repeated.
|-
|TVD
|True vertical depth. The vertical depth below a given datum.
|-
|Unconformity
|A break in the succession of sedimentary <abbr>deposition</abbr>, commonly associated with erosion of underlying rock units. Often marked by rock surfaces which are non-parallel above and below the <abbr>unconformity</abbr>.
|-
|Unrisked
|Associated with an estimate of possible <abbr>hydrocarbons</abbr> for which a discount attributable to <abbr>risk</abbr> has not been applied.
|-
|Updip
|Toward a higher elevation on a rock surface.
|-
|Uplift
|Elevation by means of geological activity of one surface or area relative to another.
|-
|Well log
|A device which records rock physical parameters in the well bore during or after drilling, or, the data obtained by these devices.
|}
|}


Latest revision as of 13:50, 12 September 2023

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.

Assuming that Pantheon Resources increases its share of the global oil and gas exploration and production market by cccx to ccc% (from less than ccc%) and other assumptions, the expected return of an investment in the company over the next five years is ccc%, which equates to an annual return of ccc%. In other words, an £1,000 investment in the company is expected to return £ccc in five years time.

The degree of risk associated with an investment in Pantheon Resources is 'medium', with the shares having an adjusted beta that is 45% below the market (0.55 vs. 1).[1]

Accordingly, if your desired annual rate of return is ccc% or less over the next five years and/or one of your goals is to xxx (i.e. you share in the mission of Pantheon Resources), and you are both willing and able to accept the possibility of losing your entire investment amount, then an investment in the company is considered to be a 'suitable' one.

OperationsEdit

IdeaEdit

Founded in 2005, Pantheon Resources plc began as a UK-based exploration company targeting onshore USA basins, especially East Texas. However, in 2019, recognising the vast potential of the Alaska North Slope, Pantheon strategically acquired Great Bear Petroleum's assets. This move prompted a shift from East Texas to concentrate solely on Alaska, given its proximity to key Alaskan oil infrastructure and the immense opportunities it presented.

ProjectsEdit

ccc

Pantheon Acreage North Slope.jpg


Advantageous location.jpg

Greater AlkaidEdit

In 2015, the Alkaid #1 well was drilled close to both the Dalton Highway and the Trans Alaska Pipeline System (TAPS) – the main transportation route and significant export pipeline on the Alaska North Slope, respectively.[2] The drilling was halted before reaching its target depth due to environmental concerns: the nearby Sag River flooding led to the closing of the Dalton Highway.[2] While Alkaid was meticulously documented, no production tests were carried out then.[2] The well had shown promising signs, having encountered a 400-foot gross pay without an oil-water contact. Pantheon began activities again in 2019, successfully testing the Primary Zone of Interest.[2] The recent oil discovery at Talitha #A enhanced the potential for oil in the Greater Alkaid structure.[2]

Alkaid #1 Pay IntervalsEdit

Comprehensive data from Alkaid well revealed a 400-foot gross pay, with 240 feet of net oil pay.[2] Expert consultations confirmed the potential of this project.[2] 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.[2] Advanced seismic imaging indicates even better reservoir potentials in the core.[2] The company envisions using an early production unit (EPU) to facilitate early cash flow and obtain valuable data.[2] A full-fledged Central Processing Unit (CPU) is in the pipeline for optimal resource utilisation.[2] Pantheon is keen to use unconventional oil production technologies, which has become standard across the Alaska North Slope.[2]

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).[2] The company plans to commission a pilot test producer in 2022, which could provide immediate cash flow.[2] Alkaid’s strategic location offers year-round activity advantages.[2]

Alkaid #1 HighlightsEdit

Pantheon secured a unit over Alkaid and outlined its proposed activities in a First Plan of Exploration (POE) in November 2020.[2] The plan includes reprocessing 3D seismic data and studying potential 'hot-tap' integrations into the TAPS.[2] Though there are no fixed drilling commitments, the POE proposes drilling two wells near the Dalton Highway for year-round operations.[2] Depending on the Alkaid #2 well results, the Alkaid #3 well will follow.[2]

GBP, a significant exploration leaseholder, controls over 250,000 acres, positioned south of North America's major oil fields, Prudhoe Bay and Kuparuk.[2] The region, blanketed by 3D seismic data, hosts several discoveries and promising exploration prospects.[2] Pantheon holds complete interest in all its ventures.[2]

TalithaEdit

The Talitha #A well, drilled in 2021, appraised an oil accumulation initially discovered by the Pipeline State #1 well in 1988.[3] While the original well in 1988 showed significant oil potential, it was halted due to economic reasons and lack of advanced technology.[3] However, high-resolution 3D seismic data acquired in 2013 reignited interest in the area.[3] The Talitha #A well confirmed oil presence across several zones, and recent tests in 2022 further validated the well's promising prospects.[3]

Key FindingsEdit
  • 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.[3]
  • Its proximity to existing infrastructure offers economic advantages, potentially allowing for faster production ramp-up with minimised capital expenditure.[3]
  • 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.[3]
Specific Zones and ResultsEdit
  1. Basin Floor Fan (BFF): Tests indicated quality oil with sustained production rates.[3] Future developments would potentially be at structurally higher positions for better results.[3]
  2. Slope Fan System (SFS): Testing showed producible oil, with implications for resource and oil recovery estimates. The success here suggests potential for other areas of the North Slope.[3]
  3. Shelf Margin Deltaic (SMD): Testing faced challenges from blockages and weather, but earlier data and the success of the deeper zones have kept the company's optimism intact for the potential of this zone.[3]
  4. Kuparuk: As the deepest oil formation, the Kuparuk provided significant findings.[3] It's a regional producer with an adjacent giant oilfield, the Kuparuk Field.[3] The Talitha #A well showed promising signs, although testing encountered issues.[3]
ConclusionEdit

The data from Talitha #A has increased confidence in the commercial viability of these zones.[3] Pantheon remains encouraged by the analysis and sees potential for further exploration and drilling.[3] The discovery augments the prospectivity of adjacent potential oil-bearing structures, which will be explored in future programs.[3]

KodiakEdit

The Kodiak project, previously known as Theta West, is a significant appraisal project for Pantheon Resources. The project has garnered attention due to its potential to rival the immense hydrocarbon pore volume plays outside the renowned Prudhoe Bay Oilfield in the Alaska North Slope (ANS). Geologically, the Kodiak field can be likened to the deepwater offshore regions in the Gulf of Mexico, West Africa, and recent discoveries off Guyana's coast.[4]

Independent Expert Report (IER) FindingsEdit

An Independent Expert Report (IER) by Netherland, Sewell & Associates (NSAI) on the Kodiak project has provided a contingent resource estimate. The 2C (best estimate) for the Kodiak field stands at a staggering 962.5 million barrels of marketable liquids. This comprises both oil and natural gas liquids (NGLs). The NGLs are of significant value as they can be blended with the oil, yielding approximately 90% of the Alaska North Slope (ANS) price per barrel.[4]

Gross 100% Working Interest Contingent Resources
Resource Category Oil (million bbls) NGLs (million bbls) Residual Gas (BCF) Total Marketable Liquids[5] (million bbls)
Low Estimate (1C) 145.4 292.4 2,151.7 437.8
Best Estimate (2C) 314.6 647.9 4,465.2 962.5
High Estimate (3C) 647.8 1,366.4 8,822.7 2,014.2

Kodiak Project Horizon (illustrative type log)

Location of Kodiak and Ahpun Projects

Field Development and InfrastructureEdit

The Kodiak project spans an area of 126,000 acres, which includes recently awarded additional acreage. The field is defined by the hydrocarbon bearing horizons contained within the large basin floor fan system. This system stretches from the Hue Shale top seal to the underlying HRZ shale. The field's vastness and potential make it one of the largest basin floor fan systems discovered onshore in recent decades.[4]

Pantheon's proprietary 3D seismic data and three wells (Pipeline State 1, Talitha-A, and Theta West-1) have confirmed the field's potential. The company plans to further develop the Kodiak project, focusing on the recently acquired "chimney acreage" and the delineation provided by the seismic data.[4]

Appraisal and Future PlansEdit

Pantheon intends to drill the next Kodiak appraisal well in the recently acquired leases, northwest of Theta West-1. This drilling aims to encounter a reservoir section with improved reservoir characteristics, potentially yielding higher flow rates and hydrocarbon recovery rates. The company's detailed geological model, which takes into account data from nearby producing fields, supports this approach.[4]

To address the contingencies highlighted in NSAI's evaluation, Pantheon plans to cut full cores and acquire a comprehensive suite of wireline logs and fluid samples in future appraisal wells. This granular data could potentially lead to future increases in recoverable resource estimates.[4]

ConclusionEdit

The Kodiak project represents a transformative opportunity for Pantheon Resources. With nearly one billion barrels of recoverable liquids, the project's potential is immense. The close proximity to existing infrastructure, combined with the vast resource base, positions Pantheon advantageously for future growth and development. The forthcoming appraisal activities and the company's strategic approach to the Kodiak field further underscore its potential as a world-class project in a prime location.[4]

StrategyEdit

Pantheon's primary strategy is to maximize shareholder value through the following means:

  • High Working Interest Maintenance: Pantheon retains a 100% working interest through the evaluation process of its assets. This high stake allows the company to have significant control over its projects and potential returns.
  • Strategic Drilling and Farm-outs: The company aims to prove up its assets through targeted drilling. Where appropriate, Pantheon may pursue farm-outs, partnering with other entities to share the costs and risks of exploration and development.
  • Asset Monetisation: Pantheon's endgame is to monetize its assets, either through a sale or other means, at the opportune moment. This "prove up and sell" approach is designed to offer investors a chance to capitalize on high-impact, risk-managed drilling.

TeamEdit

Pantheon boasts a seasoned board and a robust advisory group, all of whom are shareholders with established track records in the oil and gas sector. They have a rich history of building profitable companies for acquisition. Additionally, Pantheon's board and management team have extensive experience with oil and gas operations in Alaska.

David Hobbs.

David Hobbs, Executive Chairman[6]Edit

  • Experience: Graduated as a Petroleum Engineer from Imperial College in 1984. Worked at British Gas, Monument Oil & Gas, and Hardy Oil and Gas. Former Chief Energy Strategist at Cambridge Energy Research Associates (CERA) and part of the leadership team at King Abdullah Petroleum Studies and Research Center (KAPSARC) in Riyadh, Saudi Arabia.[7]
  • Education: Petroleum Engineer from Imperial College.[7]
  • Prominent Roles: Drilling engineer at British Gas; commercial and business development roles at Monument Oil & Gas and Hardy Oil and Gas; Chief Energy Strategist at CERA; leadership role at KAPSARC.[7]
  • Pantheon Committees: Details to be confirmed.[7]
  • Current Directorships: SV-Pleione Limited, Polar Energy LLC.[7]

Jay Cheatham, Chief Executive Officer[8]Edit

Jay Cheatham.
  • Experience: Over five decades encompassing all aspects of the petroleum business.[8]
  • Prominent Roles: Senior Vice President and District Manager for ARCO's eastern District; President of ARCO International; President and CEO of Rolls-Royce Power Ventures.[8]
  • Specialties: Operational expertise with significant financial acumen; formerly served as CFO for ARCO's Oil & Gas, and CEO of Petrogen Fund.[8]
  • Pantheon Committees: Member of the Remuneration and Nominations, Audit, Conflicts, and Anti-Corruption and Bribery Committees.[8]

Justin Hondris, Director of Finance and Corporate Development[8]Edit

  • Experience: Over 15 years in public company management, specifically in the upstream oil and gas sector.[8]
  • Background: Corporate finance, private equity, and capital markets in the UK and internationally; previous private equity involvement.[8]
  • Responsibilities: Manages Pantheon's financial, legal, administrative, and corporate development functions.[8]
  • Pantheon Committees: Chairs the Anti-Corruption and Bribery Committee. Member of the Remuneration and Nominations and Conflicts Committees.[8]

Robert (Bob) Rosenthal, Technical Director[8]Edit

Bob Rosenthal.
  • Experience: Over 40 years globally as an Exploration Geologist and Geophysicist.[8]
  • Key Roles: Senior exploration roles at Exxon and BP, gaining expertise in the geology of North Slope of Alaska and Texas.[8]
  • Current Engagement: Since 1999, he has operated a successful consulting business, leading exploration initiatives for various private and public entities.[8]

Jeremy Brest, Non-Executive Director[8]Edit

Jeremy Brest
  • Experience: Over 25 years in investment banking and financial advisory.[8]
  • 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.[8]
  • Pantheon Committees: Member of the Audit, Remuneration and Nominations, Conflicts, and Anti-Corruption and Bribery Committees.[8]

Allegra Hosford Scheirer, Independent Non-Executive Director[9]Edit

Allegra Hosford Scheirer.
  • Experience: Internationally recognised expert in petroleum system analysis with significant experience in basin modelling, organic geochemistry, geophysical techniques, and machine learning. Evaluated numerous oil and gas provinces globally, including the Alaska North Slope.[9]
  • Education: Ph.D. in marine geology and geophysics from the Massachusetts Institute of Technology.[9]
  • Prominent Roles: Scientist at Stanford University for 15 years; worked with the Energy Resources Program at the U.S. Geological Survey ("USGS"); independent adviser for Great Bear Petroleum.[9]
  • Pantheon Committees: Details to be confirmed. Current Directorships: Geomodelling Solutions LLC.[9]

MarketEdit

Total Addressable MarketEdit

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 $5.3 trillion.[10]

Serviceable Available MarketEdit

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) is 3.6 billion barrels of oil and 8.9 trillion cubic feet of natural gas conventional resources, which equates to around $242.7 billion in terms of revenue.[11]

Serviceable Obtainable MarketEdit

Here, the serviceable obtainable market (SOM) is defined as the Alaskan North Slope oil and gas exploration and production market in which the company holds lease licenses, 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.

FinancialsEdit

Most recentEdit

After the interim results' period end, the company raised approximately $22 million, net of fees, on 16th May 2023.[12]

On 15th June 2023, to address its obligations for the senior unsecured convertible bonds due 2026, the company settled a quarterly principal of US$2.45 million and interest of US$367,500 by issuing 15,172,320 new Ordinary Shares. This arrangement reduces the Convertible Bond's outstanding principal to US$34.30 million.[13]

On 7th September 2023, Pantheon Resources plc announced a private placement of 11.9 million new shares at £0.1878 each, raising $2.793 million from IPGL Limited. The amount will be used to cover a bond repayment, making the placement cash-neutral for Pantheon. The new shares, constituting 1.3% of the pre-placement share capital, will be issued around 29 September 2023.[14]

Accordingly, since the company's interim results, the company has raised raise a total of $27.243 million.

Interim resultsEdit

Profit and lossEdit

Profit and loss
2021[15] 2022[15]
Currency USD USD
Continuing operations
Revenue - 455,309
Production royalties - (57,101)
Facilities commissioning and operations - (837,503)
Cost of sales - (183,296)
Gross loss - (622,590)
Administration expenses (3,150,888) (3,699,831)
Share Based payment expense (2,013,966) (2,935,897)
Operating loss (5,174,854) (7,258,318)
Convertible Bond - Interest Expense (570,295) (3,151,102)
Convertible Bond - Revaluation of Derivative Liability (200,531) 7,937,855
Interest receivable 143 152,492
Loss before taxation (5,945,537) (2,319,073)
Taxation 1,497,945 743,097
Loss for the year (4,447,592) (1,575,796)
Other comprehensive income for the year
Exchange differences from translating foreign operations 844,484 (97,473)
Total comprehensive loss for the year (3,603,108) (1,673,449)
Loss per share from continuing operations:
Basic and diluted loss per share (0.66)¢ (0.21)¢

Balance sheetEdit

Balance sheet
2021[15] 2022[15]
Currency USD USD
Assets
Non-current assets
Exploration & evaluation assets 195,662,187 274,321,398
Property, plant and equipment 4,245 66,199
Total non-current assets 195,666,432 274,387,597
Current assets
Trade and other receivables 275,315 2,823,089
Cash and cash equivalents 92,667,269 16,335,676
Total current assets 92,942,584 19,158,765
Total assets 288,609,016 293,546,363
Liabilities
Current liabilities
Convertible Bond – Debt - 9,929,027
Trade and other payables 1,120,647 6,336,999
Provisions 1,250,000 5,282,866
Lease Liabilities 4,702 60,007
Other Liabilities - -
Deferred tax liability 2,207,792 940,306
Total current liabilities 4,583,141 22,549,205
Non-current liabilities
Lease Liabilities - 2,956
Convertible Bond – Debt 39,734,584 19,228,219
Convertible Bond – Derivative 16,023,781 3,587,629
Total non-current liabilities 55,758,365 22,818,804
Total liabilities 60,341,506 45,368,009
Net assets 228,267,510 248,178,354
Equity
Capital and reserves
Share capital 10,418,381 10,848,761
Share premium 249,429,603 272,264,411
Retained losses (40,778,990) (49,647,328)
Currency reserve 2,079,046 395,605
Share based payment reserve 7,119,470 14,316,906
Shareholders’ equity 228,267,510 248,178,354

Cash flowEdit

ccc

Cash flow
Year 2021[15] 2022[15]
Currency USD USD
Net outflow from operating activities (2,446,588) (6,722,549)
Cash flows from investing activities
Interest received 143 152,492
Funds used for drilling, exploration and leases (6,707,468) (36,601,678)
Advance for Performance Bond - -
Interest paid (7,961) -
Property, plant and equipment - (3,033)
Net cash outflow from investing activities (6,715,286) (36,452,218)
Cash flows from financing activities
Proceeds from share issues 42,140,595 1,756,018
Issue costs paid in cash (946,710) -
Proceeds from Convertible Bond 55,000,000 -
Repayment of borrowing and leasing liabilities (28,218) (29,696)
Net cash inflow from financing activities 96,165,667 1,726,323
Increase in cash & cash equivalents 87,003,793 (41,448,445)
Cash and cash equivalents at the beginning of the year 5,663,476 57,784,121
Cash and cash equivalents at the end of the year 92,667,269 16,335,677

Full-year resultsEdit

Profit and lossEdit

Profit and loss
Year 2018[16] 2019[17] 2020 (restated)[18] 2021[8] 2022[8]
Currency USD USD USD USD USD
Year since incorporation 13 14 15 16 17
Continuing operations
Revenue 1,009,570 724,589 - - -
Production royalties (244,783) (205,458) - - -
Depletion of developed oil & gas assets (88,293) (148,485) - - -
Cost of sales (562,986) (737,208) - - -
Gross profit/(loss) 113,508 (366,562) - - -
Administration expenses (1,922,917) (3,438,239) (3,667,635) (5,034,361) (7,430,653)
General & Administrative expenses – Vision - (1,744,730) - - -
Impairment of exploration & evaluation assets (6,805,537) (34,138,156) (130,112) - -
Share Based payments expense - - - (3,211,038) (8,256,575)
Impairment of developed oil & gas assets - (13,092,684) - - -
Impairment of property plant and equipment - (1,397,950) - - -
Impairment of Goodwill - (796,236) - - -
Depreciation of production & pipeline facilities (145,516) (275,665) - - -
Operating loss (8,760,462) (55,250,222) (3,797,747) (8,245,400) (15,687,228)
Convertible Bond - Interest Expense - - - - (4,640,537)
Convertible Bond - Revaluation of Derivative Liability - - - - 4,310,773
Gain on bargain purchase - 100,757,286 - - -
Less: deferred tax thereon - (28,783,396) - - -
Interest receivable 6,858 25,781 23,759 4,234 42,674
Loss before taxation (8,753,604) 16,749,449 (3,773,988) (8,241,165) (15,974,318)
Taxation - 18,757,633 965,681 1,573,094 2,022,334
Loss for the year from Continuing Operations after Taxation - - (2,808,307) (6,668,071) (13,951,984)
Loss for the year from discontinued operations - - (14,170,288) (54,415) -
Loss for the year (8,753,604) 35,507,082 (16,978,595) (6,722,487) (13,951,984)
Other comprehensive income for the year Exchange differences from translating foreign operations 277,183 (179,284) (47,800) 1,503,199 (741,484)
Total comprehensive loss for the year (8,476,421) 35,327,798 (17,026,395) (5,219,288) (14,693,468)
Loss per share from continuing operations:
Basic and diluted loss per share (3.72)¢ 10.54¢ (0.56)¢ (1.17)¢ (1.93)¢
Loss per share from discontinued operations:
Basic and diluted loss per share - - (2.83)¢ (0.01)¢ -

Balance sheetEdit

Balance sheet
2018[16] 2019[17] 2020[18] 2021[8] 2022[8]
Currency USD USD USD USD USD
Year since incorporation 13 14 15 16 17
Assets
Non-current assets
Exploration & evaluation assets 43,498,422 160,887,260 156,097,609 188,954,719 237,722,294
Developed oil & gas assets 13,736,007 6,961,445 - - -
Property, plant and equipment 2,237,698 2,494,464 658,898 30,308 91,691
Total non-current assets 59,472,127 170,343,169 156,756,507 188,985,027 237,813,985
Current assets
Trade and other receivables 700,939 1,843,649 74,167 109,876 2,498,447
Cash and cash equivalents 3,399,290 1,853,986 4,802,965 5,663,477 57,784,121
Total current assets 4,100,229 3,697,635 4,877,132 5,773,353 60,282,568
Total assets 63,572,356 174,040,804 161,633,639 194,758,380 298,096,553
Liabilities
Current liabilities
Convertible Bond – Debt - - - - 10,001,704
Trade and other payables 316,976 1,410,347 388,092 1,107,090 6,377,986
Provisions - 1,335,863 1,335,863 1,250,000 5,285,440
Lease Liabilities - - 46,311 32,788 60,297
Other Liabilities - - - - 1,964,441
Deferred tax liability - 10,025,763 5,293,296 3,705,737 1,683,403
Total current liabilities 316,976 12,771,973 7,063,562 6,095,615 25,373,271
Non-current liabilities
Lease Liabilities - - 27,914 - 30,004
Convertible Bond – Debt - - - - 20,474,664
Convertible Bond – Derivative - - - - 12,816,226
Total non-current liabilities - - 27,914 - 33,320,894
Total liabilities 316,976 12,771,973 7,091,476 6,095,615 58,694,166
Net assets 63,255,380 161,268,831 154,542,163 188,662,765 239,402,388
Equity
Capital and reserves
Share capital 3,852,673 7,966,075 8,568,721 9,739,203 10,720,459
Share premium 106,678,805 164,044,720 173,687,092 208,683,936 264,879,196
Retained losses (48,137,398) (12,630,316) (29,608,911) (36,331,398) (48,466,591)
Currency reserve (41,554) (220,838) (268,637) 1,234,562 493,078
Share based payment reserve 902,854 2,163,898 2,163,898 5,336,462 11,776,246
Non controlling interests - (54,708) - - -
Shareholders’ equity 63,255,380 161,268,831 154,542,163 188,662,765 239,402,388

Cash flowEdit

Cash flow
Year 2018[16] 2019[17] 2020[18] 2021[8] 2022[8]
Currency USD USD USD USD USD
Year since incorporation 13 14 15 16 17
Net outflow from operating activities (2,082,803) (5,513,085) (5,707,802) (3,098,495) (941,506)
Cash flows from investing activities
Interest received 6,858 25,781 25,881 4,295 42,674
Funds used for drilling, exploration and leases (10,679,594) (10,579,750) (1,591,591) (24,973,399) (45,267,175)
Developed oil & gas assets (495,183) (523,934) - - -
Decommissioning Provision (Exploration & Evaluation) - 676,464 - - -
Decommissioning Provision (Developed Oil & Gas Assets) - 409,400 - - -
Advance for Performance Bond - - - - (2,400,000)
Property, plant and equipment 208,682 (312,637) - - (3,368)
Acquisition of a subsidiary (Great Bear), net of cash acquired - (6,098,215) - - -
Acquisition of a subsidiary, (Vision Resources LLC) net of cash acquired - 1,920 - - -
Disposal - - (1,134) - -
Net cash outflow from investing activities (10,959,237) (16,400,971) (1,566,844) (24,969,105) (47,627,869)
Cash flows from financing activities
Proceeds from share issues 12,596,484 21,259,057 10,816,383 30,181,084 46,739,796
Issue costs paid in cash (537,360) (890,304) (571,364) (1,197,275) (994,694)
Proceeds from Convertible Bond - - - - 55,000,000
Repayment of borrowing and leasing liabilities - - (21,394) (55,698) (55,083)
Net cash inflow from financing activities 12,059,124 20,368,753 10,223,625 28,928,111 100,690,020
Increase in cash & cash equivalents (982,916) (1,545,304) 2,948,979 860,511 52,120,645
Cash and cash equivalents at the beginning of the year 4,382,206 3,399,290 1,853,986 4,802,965 5,663,476
Cash and cash equivalents at the end of the year 3,399,290 1,853,986 4,802,965 5,663,476 57,784,121

RisksEdit

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. 0.55)[1], the degree of risk associated with an investment in Pantheon Resources Plc is 'medium'.

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 ability to adequately source sufficient funding to meet the company’s working capital requirements (i.e. liquidity risk).

  1. Liquidity Risk: The primary liquidity risk is the ability to adequately source sufficient funding to meet the company’s working capital requirements. Funding availability, and hence risk, within the capital markets remains volatile.[8]
  2. Oil & Gas Price Risk: Future oil and gas sales revenues are subject to the volatility of the underlying commodity prices throughout the year. Over the past year the energy sector has been impacted by volatility in commodity prices, which may continue to impact the group going forward.[8]
  3. Currency Risk: Most capital expenditures for the year (and future years), as well as possible future operational revenues from oil sales were or will be denominated in US dollars. The group keeps the majority of its cash resources denominated in US dollars to minimise volatility and foreign currency risk.[8]
  4. Credit Risk: The group’s credit risk is primarily attributable to its cash balances. The credit risk on liquid funds is limited because the third parties are large banks with a minimum investment grade credit rating. The group’s total credit risk amounts to the total of other receivables and cash and cash equivalents.[8]
  5. 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.[8]
  6. 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 unitisation for certain projects to possibly extend their initial lease term.[8]
  7. 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.[8]
  8. 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.[8]
  9. 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.[8]
  10. 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.[8]
  11. 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.[8]
  12. 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 minimise disruptions.[8]

ValuationEdit

Absolute ValuationEdit

What's the expected return of an investment in the company?Edit

The Stockhub users estimate that the expected return of an investment in the company over the next five years is ccc%, which equates to an annual return of ccc%. In other words, an £1,000 investment in the company is expected to return £ccc in five years time. The assumptions used to estimate the return figure can be found in the table below.

Assuming that a suitable return level over five years is ccc% per year or less, and Pantheon Resources achieves its expected return level (of ccc%), then an investment in the company is considered to be an 'suitable' one.

Net present values of core company projects
Project Net present value ($million) Comment
Greater Alkaid $595 million[19]
Talitha N/A
Theta West N/A
Total $595 million

What are the assumptions used to estimate the return?Edit

ccc

Sensitivity analysisEdit

The main inputs that result in the greatest change in the expected return of the Pantheon Resources investment are, in order of importance (from highest to lowest):

  1. The size of the total addressable market (the default size is $ccc);
  2. Pantheon Resources peak market share (the default share is ccc%); and
  3. The discount rate (the default time-weighted average rate is ccc%).

The impact of a 50% change in those main inputs to the expected return of the Pantheon Resources investment is shown in the table below.

Pantheon Resources investment expected return sensitivity analysis
Main input 50% worse Unchanged 50% better
The discount rate ccc% ccc% ccc%
The size of the total addressable market ccc% ccc% ccc%
Pantheon Resources peak market share ccc% ccc% ccc%

AppendixEdit

Cost of equityEdit

Cost of equity
Input Input value Additional information
Risk-free rate (%) 4.297% Here, the risk free rate is the US 30 year treasury bond, and is calculated as at 3rd September 2023. Research suggests that for the risk-free rate, it's best to use one that has the same or similar maturity to the estimated remaining lifespan of the company. Here, we have assumed that the estimated lifespan of the company is 30 years years or longer, so we have used the longest maturity, which is 30 years.
Beta 0.5508 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.
Equity risk premium (%) 7.98% Research suggests that for the region of equity risk premium, it's best to use one that is the same or similar to the region of the beta market portfolio. Here, the region of the beta market portfolio is the world/global, so we have used the world/global region for the equity risk premium, and is calculated as at 5th January 2023.
Cost of equity (%) 8.69% Cost of equity = Risk-free rate + Beta x Equity risk premium.

Relative valuationEdit

As noted earlier in this report, research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach, so that's the approach that Stockhub suggests using to determine the estimated value of the company (the valuation based on the discounted cash flow approach can be found in the valuation section of this report); nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the relative valuation approach.

What's the expected return of an investment in Pantheon Resources using the relative valuation approach?Edit

Stockhub estimates that the expected return of an investment in Pantheon Resources over the next 12-months is 185%. In other words, an £1,000 investment in the company is expected to return £2,849 in one year time. The assumptions used to estimate the return figure can be found in the table below.

What are the assumptions used to estimate the return figure?Edit

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Key inputs
Description Value Commentary
Which type of multiple do you want to use? Price-to-book value The price-to-book value is really the only available commonly used value, so we suggest using that.
In regards to the price-to-book value multiple, for the book value figure, which year to you want to use? Year 1 Research suggests that when using the relative valuation approach, it's best to use a time period of 12 months or less. Accordingly, for the book value figure, we suggest using Year 1, which is on 12th September 2024.
In regards to the price-to-book value multipl, what multiple figure do you want to use? 1.54x Here, we suggest using a multiple of 1.54x, which is in-line with the multiples of Pantheon Resources's peers (for details on the peers can be found in the table below).
What is the estimated compound annual growth rate of the book value between one year from now and the most recent value? 46.37% One year from now is 12th September 2024, and the most recent book value date is 31st December 2022. For simplicity, we based the estimate on the CAGR of Pantheon Resources over the last five years, which is 46.37%. The most recent value is $248,178,354 (as at 31st December 2022).
What's the current market capitalisation of the company? £205.44 million As at 12th September 2023, the market capitalisation of Pantheon Resources Plc is £205.44 million.
Which time period do you want to use to estimate the expected return? Between now and one year time Research suggests that when using the relative valuation approach, it's best to estimate the expected return of the company between now and one year time.
What's the FX rate? $1.25 The current FX rate of GBPUSD is $1.25.
Peers analysis
Market capitalisation (local) Cash Debt Enterprise value Proved reserves Probable reserves Possible reserves EV/Proved Reserves EV/Proved + Probable Reserves EV/Proved + Probable + Possible Reserves
Pantheon Resources Plc
88 Energy Limited
Brookside Energy Limited
Diversified Gas & Oil PLC
ConocoPhillips
Local peers - BICS Best Fit (Algorithm)
Name Ticker 2Y Corr Mkt Cap (USD) BF P/E BF EV/EBITDA BF EV/EBIT BF EV/Rev LF P/BV
Pantheon Resources PLC PANR LN 248763255.1 -- -- -- -- 0.8599
EnQuest PLC ENQ LN 0.2638 342484769.1 1.3755 1.4467 2.0561 0.9302 0.7375
Harbour Energy PLC HBR LN 0.2596 2362103778 6.4952 0.9316 1.8074 0.6763 1.6824
Serica Energy PLC SQZ LN 0.223 1227222775 -- -- -- -- 1.7056
Gulf Keystone Petroleum Ltd GKP LN 0.2189 250637412.4 2.1706 0.9949 1.756 0.6632 0.453
OKEA ASA OKEA NO 0.2091 372011265.3 3.0588 0.3939 0.5296 0.2736 1.8361
BLUENORD ASA BNOR NO 0.2079 1243069610 7.3107 2.866 3.71 1.9001 1.7456
Tullow Oil PLC TLW LN 0.1981 666476192.9 2.2878 2.685 3.7652 2.0689 --
DNO ASA DNO NO 0.1976 921463861.7 5.3441 1.3689 1.9461 0.8614 0.7003
Genel Energy Plc GENL LN 0.1923 287304379.2 0.4852 1.2792 9.3474 0.8072 0.6281
Capricorn Energy PLC CNE LN 0.0962 283070688.1 -- -- -- -- 0.2424
Mean   (Including PANR LN) 745873453.2 4.0061 1.4958 3.1147 1.0226 1.0214
Current Premium to Comps Mean -- -- -- -- -15.8058


North America peers - BICS Best Fit (Algorithm)
Name Ticker 2Y Corr Mkt Cap (USD) BF P/E BF EV/EBITDA BF EV/EBIT BF EV/Rev LF P/BV
Pantheon Resources PLC PANR LN 249401660.5 -- -- -- -- 0.8621
Bonterra Energy Corp BNE CN 0.2145 201202900.1 5.7932 -- -- 5.3528 0.5485
Canacol Energy Ltd CNE CN 0.2055 291229291.5 4.4749 3.991 6.2457 2.7131 0.8688
Journey Energy Inc JOY CN 0.1826 250649018.6 10.0903 3.2022 -- -- 1.1123
Gran Tierra Energy Inc GTE US 0.1772 242916614 3.0209 1.6716 2.4108 1.0112 0.5344
Reconnaissance Energy Africa L RECO CN 0.1628 201636539 -- -- -- -- 3.7743
Evolution Petroleum Corp EPM US 0.1535 298752800.3 9.5026 5.339 5.8633 2.5077 3.1245
Alvopetro Energy Ltd/CA ALV CN 0.149 258641189.1 5.3166 -- 5.022 3.4221 2.8451
Amplify Energy Corp AMPY US 0.1002 277732974.3 1.8069 4.1816 6.8549 1.2493 0.7737
CGX Energy Inc OYL CN 0.099 239180966.5 -- -- -- -- 4.342
Global Tech Industries Group I GTII US 0.0407 290690567.5 -- -- -- -- 24.9919
Mean 254730411.1 4.407 3.991 5.6339 2.3821 1.4639
Current Premium to Comps Mean -- -- -- -- -41.1063
Global peers - Global Industry Classification Standard
Name Ticker 2Y Corr Mkt Cap (USD) BF P/E BF EV/EBITDA BF EV/EBIT BF EV/Rev LF P/BV
Pantheon Resources PLC PANR LN 248743297.3 -- -- -- -- 0.8599
Jadestone Energy PLC JSE LN 0.2226 256103808.5 12.1425 0.8699 1.7002 0.3279 1.7301
Gulf Keystone Petroleum Ltd GKP LN 0.2189 250617304.2 2.1706 0.9949 1.756 0.6632 0.4529
Genel Energy Plc GENL LN 0.1924 287281329.3 0.4852 1.2792 9.3474 0.8072 0.6281
Journey Energy Inc JOY CN 0.1826 250722843.5 10.0903 3.2022 -- -- 1.1123
Gran Tierra Energy Inc GTE US 0.1772 242916614 3.0209 1.6716 2.4108 1.0112 0.5344
Alvopetro Energy Ltd/CA ALV CN 0.149 258717367.9 5.3166 -- 5.022 3.4221 2.8451
Touchstone Exploration Inc TXP CN 0.1276 199349168.4 16.338 3.3236 5.7614 2.0963 2.5903
La Francaise De L'energie SACA FDE FP 0.1153 227020391.8 11.7018 7.3477 9.0049 4.3978 2.8113
Amplify Energy Corp AMPY US 0.1002 277732974.3 1.8069 4.1816 6.8549 1.2493 0.7737
CGX Energy Inc OYL CN 0.099 239251413.6 -- -- -- -- 4.342
Capricorn Energy PLC CNE LN 0.0962 283047977.8 -- -- -- -- 0.2423
Coelacanth Energy Inc CEI CN 0.0954 260548386.6 -- -- -- -- 3.7122
Kistos Holdings PLC KIST LN 0.0891 253019056.7 -- -- -- -- 2.2992
Cohen Development Gas & Oil Lt CDEV IT 0.0795 211048552.1 -- -- -- -- 6.5187
Hindustan Oil Exploration Co L HOE IN 0.0428 255827680.6 -- -- -- -- 2.2394
Mean   (Including PANR LN) 250121760.4 9.0748 2.7631 5.3661 2.0603 1.4934
Current Premium to Comps Mean -- -- -- -- -42.4215
North America - Global Industry Classification Standard
Name Ticker 2Y Corr Mkt Cap (USD) BF P/E BF EV/EBITDA BF EV/EBIT BF EV/Rev LF P/BV
Pantheon Resources PLC PANR LN 248743297.3 -- -- -- -- 0.8599
Saturn Oil & Gas Inc SOIL CN 0.2403 289188348.4 1.6041 0.8074 -- 0.6336 0.6728
Bonterra Energy Corp BNE CN 0.2145 201232526.3 5.7932 -- -- 5.3528 0.5485
Canacol Energy Ltd CNE CN 0.2055 291272173.8 4.4749 3.991 6.2457 2.7131 0.8688
Journey Energy Inc JOY CN 0.1826 250685925.6 10.0903 3.2022 -- -- 1.1123
Gran Tierra Energy Inc GTE US 0.1772 242916614 3.0209 1.6716 2.4108 1.0112 0.5344
Reconnaissance Energy Africa L RECO CN 0.1628 201666229.1 -- -- -- -- 3.7743
Evolution Petroleum Corp EPM US 0.1535 298752800.3 9.5026 5.339 5.8633 2.5077 3.1245
Alvopetro Energy Ltd/CA ALV CN 0.149 258679272.9 5.3166 -- 5.022 3.4221 2.8451
Lucero Energy Corp LOU CN 0.132 324574582.1 6.5686 2.2905 4.647 1.4365 0.9152
Touchstone Exploration Inc TXP CN 0.1276 199319815.1 16.338 3.3236 5.7614 2.0963 2.5903
Amplify Energy Corp AMPY US 0.1002 277732974.3 1.8069 4.1816 6.8549 1.2493 0.7737
CGX Energy Inc OYL CN 0.099 239216184.9 -- -- -- -- 4.342
Coelacanth Energy Inc CEI CN 0.0954 260510022 -- -- -- -- 3.7122
San Juan Basin Royalty Trust SJT US 0.08 309016317.5 -- -- -- -- 81.0503
Empire Petroleum Corp EP US 0.0627 181790240 -- -- -- -- 9.6501
Mean   (Including PANR LN) 254706082.7 8.384 2.7073 5.6339 1.945 1.5358
Current Premium to Comps Mean -- -- -- -- -44.0125

Sensitivity analysisEdit

The main inputs that result in the greatest change in the expected return of the Pantheon Resources investment are, in order of importance (from highest to lowest):

  1. The compound annual growth rate of the Pantheon Resources book value (the default figure is 46.37%);
  2. The price-to-book value multiple (the default multiple 1.57x); and
  3. Pantheon Resources most recent book value figure (the default figure is $248,178,354, or £198,542,683 at the current exchange rate of $1.25).

The impact of a 50% change in those main inputs to the expected return of the Pantheon Resources investment is shown in the table below.

Pantheon Resources investment expected return sensitivity analysis
Main input 50% worse Unchanged 50% better
The compound annual growth rate of the Pantheon Resources book value between one year ahead and the most recent value 113% 185% 266%
The price-to-book value multiple 42% 185% 327%
Pantheon Resources most recent book value figure 42% 185% 327%

Significant holdingsEdit

Significant holdings as of 15th June 2023[20][21]
                Number of Ordinary Shares % of Share Capital
Vidacos Nominees Limited 100,084,318 11.34
Interactive Brokers LLC 80,121,067 9.08
Lynchwood Nominees Limited 67,134,041 7.60
Vidacos Nominees Limited 38,521,840 4.36
Vidacos Nominees Limited 34,549,659 3.91
Barnard Nominees Limited 29,352,283 3.32
Barnard Nominees Limited 27,714,204 3.14

Capital structureEdit

The Company has 919,111,769 ordinary fully paid shares in issue.[14] The number of ordinary shares not in public hands amounts to 6,956,691[22], equivalent to 0.76% of the issued allotted and fully paid ordinary shares.[23]

Share optionsEdit

Share options[22]
Exercise price (£) Number of share options exercisable into ordinary shares on issue Expiry Date                                      Share options as a % of issued shares
0.30 4,825,000 30 September 2024 0.62%
0.27 7,000,000 6 July 2030 0.90%
0.33 12,430,000 27 January 2031 1.60%
0.671 21,705,000 18 January 2027 2.80%

Share warrantsEdit

Share warrants[24][22]
Exercise price (£) Number of share warrants exercisable into non-voting shares Expiry date Share options as a % of issued shares
0.30 4,803,921 30 September 2024 1.29%

Beta risk profileEdit

Beta value Risk rating
0 to 0.50 Low
0.50 to 1.50 Medium
1.50 to 3.00 High
3.00 and above Extremely high

Pantheon Resources beta calculationEdit

Pantheon Resources beta calculation
Date iShares MSCI World ETF unit price (USD) Pantheon Resources plc share price (GBP) iShares MSCI World ETF unit price change (%) Pantheon Resources plc share price change (%)
01/10/2018 85.25 16.24
01/11/2018 86.21 17.1 1% 5%
01/12/2018 78.87 16 -9% -6%
01/01/2019 84.96 23.375 8% 46%
01/02/2019 87.49 24.75 3% 6%
01/03/2019 88.79 28.6 1% 16%
01/04/2019 92.09 21.425 4% -25%
01/05/2019 86.76 21.25 -6% -1%
01/06/2019 91.02 21.25 5% 0%
01/07/2019 91.86 18.68 1% -12%
01/08/2019 89.84 17.9 -2% -4%
01/09/2019 91.78 16.03 2% -10%
01/10/2019 94.12 16.25 3% 1%
01/11/2019 96.76 16.5 3% 2%
01/12/2019 98.78 16.5 2% 0%
01/01/2020 97.73 16.5 -1% 0%
01/02/2020 89.67 11.95 -8% -28%
01/03/2020 77.93 13 -13% 9%
01/04/2020 86.36 13.75 11% 6%
01/05/2020 90.7 15.95 5% 16%
01/06/2020 92.14 13.775 2% -14%
01/07/2020 96.65 21.15 5% 54%
01/08/2020 102.96 22.35 7% 6%
01/09/2020 99.52 37.2 -3% 66%
01/10/2020 96.53 31 -3% -17%
01/11/2020 108.94 37.4 13% 21%
01/12/2020 112.41 43.5 3% 16%
01/01/2021 111.49 36.3 -1% -17%
01/02/2021 114.27 39.1 2% 8%
01/03/2021 118.49 35.7 4% -9%
01/04/2021 123.61 34.25 4% -4%
01/05/2021 125.6 29.4 2% -14%
01/06/2021 126.57 41.25 1% 40%
01/07/2021 128.83 55.3 2% 34%
01/08/2021 132.02 59.7 2% 8%
01/09/2021 126.46 71.6 -4% 20%
01/10/2021 133.84 77.6 6% 8%
01/11/2021 131.1 69.6 -2% -10%
01/12/2021 135.32 77.3 3% 11%
01/01/2022 128.32 79.6 -5% 3%
01/02/2022 124.58 142 -3% 78%
01/03/2022 128.16 117.6 3% -17%
01/04/2022 117.42 123.2 -8% 5%
01/05/2022 117.94 100.6 0% -18%
01/06/2022 106.88 89.4 -9% -11%
01/07/2022 115.57 117 8% 31%
01/08/2022 110.28 133.7 -5% 14%
01/09/2022 99.95 104.1 -9% -22%
01/10/2022 107.42 100.1 7% -4%
01/11/2022 115.44 72.95 7% -27%
01/12/2022 109.25 42.52 -5% -42%
01/01/2023 117.01 50.15 7% 18%
01/02/2023 113.98 57.1 -3% 14%
01/03/2023 117.67 23.64 3% -59%
01/04/2023 119.79 18.67 2% -21%
01/05/2023 118.6 15.74 -1% -16%
01/06/2023 124.52 12.71 5% -19%
01/07/2023 128.54 10.8 3% -15%
01/08/2023 125.7 25 -2% 131%
01/09/2023 125.91 22.42 0% -10%
Pantheon Resources beta and adjusted beta
Pantheon Resources
Beta 0.3262
Adjusted beta 0.5508

GlossaryEdit

ccc

Glossary
Term Definition
/Net pay The net thickness of an oil reservoir which is capable of producing hydrocarbons.
AMI Area of mutual interest.
Anticline A structure in the subsurface in which rock layers have been folded to produce an arch or dome.
Appraisal well A well drilled to evaluate the extent of a discovery made by a previous well drilled on the same trap.
Barrel (BBL) A unit of measurement commonly used in quoting liquid hydrocarbon volumes.
  • 1 barrel _ 42 U.S. gallons
  • 35 imperial gallons (approx)
  • 159 liters (approx)
Basin A depression in the earth's surface containing relatively thick deposits of sedimentary rocks.
BCF Billion cubic feet, or 28.317 cubic meters. A unit commonly used in quoting volumes of natural gas.
BCFG Billion cubic feet of gas.
Behind pipe A productive reservoir which is isolated from the well bore by the casing.
BHL Bottom hole location.
BO Barrel of oil.
BOE Barrel of oil equivalent. Used when converting oil and gas into an equivalent unit of volume. Typically, a figure of 6000 CFG per BBLO is used.
BOPD Barrels of oil per day, a unit commonly used to describe daily rates of liquids production from a flowing well.
BTU British Thermal Unit. A unit index of energy content in gas.
Casing Steel pipe which lines the well bore from surface. The casing isolates subsurface fluids from the well bore and prevents rock material from sloughing off the sides of the well bore.
CFG Cubic feet of gas
Charge risk A general term for risk that a source rock exists, that it has been is or still is generating hydrocarbons, that a trap was in place before generation , and that a conduit exists between the source rock and the reservoir.
Clastic A modifier describing rocks that were deposited by the mechanical action of water, i.e., being carried in suspension and then dropped when the energy in the flow becomes too weak to support the material. Typically, sandstone and shale.
Closure On an isolated structural high, the area enclosed by the lowest closing contour.
Condensate A hydrocarbon phase which separates out from natural gas and condenses into liquids when the hydrocarbons are produced.
Cretaceous Late Mesozoic time; roughly 140 to 65 million years ago.
Darcy 1000 millidarcies (see definition for mD below).
Deposition The process of depositing unconsolidated sediments, usually in a basin.
DHC Dry hole cost. The cost of an unsuccessful well.
Dip The angle that a rock surface forms with respect to the horizontal. Can be referenced as degrees, in the case of depth, or, in the case of seismic reflection data, in time (e.g. milliseconds per km ).
Dipmeter A tool used in logging a well which measures the dip of rock surfaces in the borehole of the well.
DMO Dip Moveout . A correction applied to seismic trace processing to account for dip. (See dip above).
DOGGR California Department of Conservation/Division of Oil, Gas, and Geothermal Resources
Dry hole A well in which no commercial hydrocarbons were discovered.
Exploration well A well drilled into a previously undrilled or noncommercial trap to test for the presence of a new hydrocarbon accumulation.
Facies An association of rock types which share a common trait. In the case of sedimentary rocks, usually used with reference to the environment in which the sediments were deposited (for example, deltaic).
Fault Any brittle failure of rock layers along which rocks are displaced on one side relative to the other.
Fault trap A structural trap where at least one of the components of closure is formed by offset of rock layers across a fault.
Fold Deformation of a rock surface.
Formation A formal term used to reference a genetically related rock unit (e.g. the Monterey Formation).
Four way dip A simple structure in which rock surfaces dip in all four directions, thus creating structural closure. Often forms a hydrocarbon trap.
Geology The study of the earth and the processes affecting its crust.
Geophysics The study of rock properties and stratigraphy through the use of analytical methods involving various types of data collection and interpretation.
GIP Gas in place. The volume of natural gas stored in a subsurface accumulation . Differs from recoverable reserves in that some of this gas will not be recovered to the surface due to properties of the rock and/or gas, and in situ pressure.
GOR Gas-oil ratio: the volume of dissolved gas per barrel of oil.
Horizon A term describing a layer of rock, most typically associated with a seismic reflection.
Hydrocarbons A compound of the elements hydrogen and carbon, in either liquid or gaseous form. Natural gas and petroleum are mixtures of hydrocarbons.
Lithology The physical, sedimentary, or mineralogical characteristics of a rock.
Marine Used as a modifier of sedimentary rock to denote deposition in the ocean.
Mature Used in association with source rock. A description applied to organic rich rock which is capable, because of sufficient temperature and burial depth, of generating hydrocarbons.
mD Millidarcy , a unit of measurement used to describe permeability, i.e., the tendency for liquids to flow through a rock unit. A high permeability indicates a good reservoir.
Migration The movement of hydrocarbons from the source rock to the reservoir.
MMBLS Million barrels.
MMBO Million barrels of oil.
MMBTU Million British Thermal Units.
MMCFD Million cubic feet of gas per day. A measure of gas flow rates from a producing well.
Monte Carlo A methodology for estimating a given quantity based on the statistical distribution of input values on which the quantity depends. Typically, the output quantity is calculated several thousand times (each calculation is called a trial), for each trial using input parameter values extracted randomly according to their statistical distributions. The result is a statistical distribution of output values.
MSCF Thousand standard cubic feet at atmospheric conditions.
N/G Net to gross ratio. The percentage of a gross thickness of reservoir with sufficient permeability such that it is capable of flowing hydrocarbons.
Oil Liquid hydrocarbons, generally more viscous and darker in color than condensates.
oil field A subsurface accumulation of hydrocarbons.
oil window The depth interval in which source rock can actively generate mobile oil.
OIP Oil in place. The volume of oil held in a reservoir in the subsurface . Not all of this oil can be recovered.
OWC Oil-water contact, which marks the base of an oil accumulation.
P10 In a Monte Carlo simulation, a measure of the high end expectation of a particular parameter's occurrence. For example, a P10 net pay of 150 ft means that there is a 10 per cent. probability that at least 150 ft of net pay will be encountered in a given trial in the simulation.
P50 In a Monte Carlo simulation, the median value of a particular parameter's occurrence. For example, a P50 net pay of 50 ft means that half of the trials in the simulation encountered a value less than 50 ft.
P90 In a Monte Carlo simulation, a measure of the low end expectation of a particular parameter's occurrence. For example, a P90 net pay of 25 ft means that there is a 90 per cent. probability that at least 25 ft of net pay will be encountered in a given trial in the simulation.
Permeability A measure of the ability of liquids to flow through a porous solid. (See mD ).
Petroleum (See Hydrocarbons).
PINS Padre Island National Seashore.
Pipeline A pipe through which any hydrocarbon or its products is delivered to an end user.
Porosity The percentage of open pore space in a rock.
POS Probability of success (technical, as opposed to commercial).
Potentially Recoverable Hydrocarbons The volume of hydrocarbons that are estimated to be producible from a given trap. Used in the context of a prospect or an undeveloped hydrocarbon accumulation.
Prospect An undrilled or poorly understood, and therefore hypothetical, hydrocarbon trap.
PSDM Pre-stack depth migration. A seismic processing technique which utilises rock velocity models to iteratively arrive at a depth converted seismic data volume.
PSTM Pre-stack time migration. A seismic processing technique which approximates PSDM but does not build a depth model. The seismic data volume is in two way travel time.
Reflector An event observed on a seismic section that usually corresponds to a buried rock surface.
Reserves The volume of oil or gas that can be recovered from the subsurface. Generally used in the context of commerciality.
Reservoir A porous rock unit in which hydrocarbons occur in an oil field.
Risk A measure of uncertainty relating to the likelihood of finding hydrocarbons, or, the likelihood that any or all of the individual geological elements required for the accumulation of hydrocarbons is met.
Sandstone A sedimentary rock composed primarily of sand sized grains, usually quartz. A common hydrocarbon reservoir rock.
SCF Standard cubic feet. See MSCF
Seal An impermeable rock unit that prevents hydrocarbons from escaping from the reservoir.
Sediment Generally, water borne debris that settles out of suspension.
Sediment rock A type of rock formed by aggregation of sediments.
Seismic reflection An event observed on seismic data that corresponds to a given rock layer in the subsurface.
Seismic survey A tool employing an energy source, such as dynamite, and recording devices used to measure the travel time from a rock layer to the surface. The primary tool used to detect hydrocarbon traps.
Shale A very fine grained rock often thinly layered. An important seal rock.
Show An indication while drilling that hydrocarbons are present in the well.
Silt/siltstone A rock whose grain size is intermediate between sand and shale.
Source/source rock An organic rich rock (typically shale) capable of generating hydrocarbons under certain conditions of temperature and pressure.
STB Stock tank barrel, the volume of a barrel of oil at the earth's surface as opposed to the corresponding volume in the subsurface.
Stratigraphy The study of the vertical and horizontal distribution of stratified rocks, with respect to their age, lateral equivalence, and environment of deposition.
Structural trap Generally, a hydrocarbon trap formed by dipping rock layers and/or faults.
Structure A geological feature usually higher in elevation than the surrounding rock, formed by local deformation of the rock layers.
TCF Trillion cubic feet of gas.
Tertiary A period of geological time from approximately 2 to 65 million years ago. Subdivided into the Pliocene, Miocene, Oligocene, Eocene, and Paleocene.
Total depth (TD) The final depth reached when drilling a well.
Trap A structure capable of retaining hydrocarbons.
Trend A particular direction in which similar geological features are repeated.
TVD True vertical depth. The vertical depth below a given datum.
Unconformity A break in the succession of sedimentary deposition, commonly associated with erosion of underlying rock units. Often marked by rock surfaces which are non-parallel above and below the unconformity.
Unrisked Associated with an estimate of possible hydrocarbons for which a discount attributable to risk has not been applied.
Updip Toward a higher elevation on a rock surface.
Uplift Elevation by means of geological activity of one surface or area relative to another.
Well log A device which records rock physical parameters in the well bore during or after drilling, or, the data obtained by these devices.

References and notesEdit

  1. ↑ 1.0 1.1 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 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. 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.
  2. ↑ 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 https://www.pantheonresources.com/about-pantheon/projects/greater-alkaid
  3. ↑ 3.00 3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 3.10 3.11 3.12 3.13 3.14 3.15 3.16 https://www.pantheonresources.com/about-pantheon/projects/talitha
  4. ↑ 4.0 4.1 4.2 4.3 4.4 4.5 4.6 https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/rmvz29r
  5. ↑ Pantheon addition of Oil & NGLs.
  6. ↑ https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/xel4enr
  7. ↑ 7.0 7.1 7.2 7.3 7.4 https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/xleqqjw
  8. ↑ 8.00 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 8.09 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 8.35 https://www.pantheonresources.com/investors/financial-reports/673-final-results-for-the-year-ended-30-june-2022/file
  9. ↑ 9.0 9.1 9.2 9.3 9.4 https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/rmvm22r
  10. ↑ https://www.ibisworld.com/global/market-size/global-oil-gas-exploration-production/#:~:text=The%20market%20size%2C%20measured%20by,is%20%245.3tr%20in%202023.
  11. ↑ To estimate the revenue from 3.6 billion barrels of oil and 8.9 trillion cubic feet (Tcf) of natural gas, you would need to know the prevailing market prices for both commodities. Please note that oil and gas prices can fluctuate significantly based on various factors, so this is a very general estimate. 1) Oil: Let's use an average price of $60 per barrel, which is a rough average for Brent crude over various periods in the late 2010s and early 2020s. 3.6 \text{ billion barrels} \times $60/\text{barrel} = $216 \text{ billion} 2) Natural Gas: Natural gas prices can be more region-specific than oil prices. In the U.S., the Henry Hub spot price is a common benchmark. Let's use an average price of $3 per thousand cubic feet (Mcf) for simplicity, though this price can vary widely. 8.9 \text{ Tcf} \times $3/\text{Mcf} = $26.7 \text{ billion} Adding these together: $216 \text{ billion (from oil)} + $26.7 \text{ billion (from gas)} = $242.7 \text{ billion} So, based on these rough price estimates, 3.6 billion barrels of oil and 8.9 Tcf of natural gas could equate to approximately $242.7 billion in revenue. However, it's essential to consider several factors: 1) Extraction Costs: The revenue figures above don't account for the costs of extracting, refining, transporting, and selling the oil and gas. These costs can be substantial. 2) Price Fluctuations: Oil and gas prices can fluctuate significantly based on global demand, geopolitical events, technological advancements, and other factors. 3) Taxes and Royalties: Governments often take a share of the revenue in the form of taxes, royalties, or other fees.
  12. ↑ https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/w03k7zw
  13. ↑ https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/x5zjy8x
  14. ↑ 14.0 14.1 https://www.investegate.co.uk/announcement/rns/pantheon-resources--panr/private-placement/7740310
  15. ↑ 15.0 15.1 15.2 15.3 15.4 15.5 https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/xp8nljr
  16. ↑ 16.0 16.1 16.2 https://www.pantheonresources.com/investors/financial-reports/648-pantheon-resources-annual-report-and-financial-statements-year-ended-30-june-2019/file
  17. ↑ 17.0 17.1 17.2 https://www.pantheonresources.com/investors/financial-reports/654-final-results-for-the-year-ended-june-2020/file
  18. ↑ 18.0 18.1 18.2 https://www.pantheonresources.com/investors/financial-reports/660-final-results-for-the-year-ended-30-june-2020/file
  19. ↑ chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/http://www.pantheonresources.com/investors/presentations/645-investor-presentation-january-2020/file
  20. ↑ As of 23 June 2022, CHONS LLC was the registered holder of 38,068,993 shares, representing 4.95% of the share capital of the Company.  These shares were held through one or more nominees accounts which may or may not be wholly in the top shareholder list presented above.  Pantheon has been advised by Farallon Capital Management LLC, the discretionary investment manager of CHONS LLC that it qualifies for an investment manager exemption pursuant to DTR 5.1.5 R (1)(a) in the FCA Rules. The practical effect of the investment manager exemption is that, where a person is acting as investment manager to another person, the applicable disclosure thresholds under the DTRs are only at 5%, 10% and 1% increments above 10%. Accordingly, the referenced shareholdings are subject to change without additional notification and therefore cannot be considered accurate apart from on the referenced date. 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.  
  21. ↑ https://www.pantheonresources.com/investors/significant-holdings
  22. ↑ 22.0 22.1 22.2 https://www.pantheonresources.com/investors/capital-structure
  23. ↑ The calculation here is 6,956,691 divided by 919,111,769.
  24. ↑ 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).
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