PANR Pantheon Resources Plc

14 March 2024

Pantheon Resources plc

Quarterly Repayment of Unsecured Convertible Bonds 

Pantheon Resources plc (AIM: PANR) ("Pantheon" or "the Company"), the oil and gas company with a 100% working interest in the Kodiak and Ahpun projects, collectively spanning 193,000 contiguous acres adjacent to and in close proximity to pipeline and transportation infrastructure on Alaska's North Slope, announces that it has elected to pay (i) the quarterly principal repayment of US$2.45 million and (ii) the quarterly interest payment of US$0.294 million (collectively, the "Quarterly Repayment") in respect of its senior unsecured convertible bonds due December 2026 (the "Convertible Bonds"), through the issuance of new shares. Pursuant to the terms of the Convertible Bond agreement a total of 8,820,315 new ordinary shares (the "New Ordinary Shares") will be issued in settlement of this Quarterly Repayment. Application is being made to AIM for the admission to trading of the 8,820,315 New Ordinary Shares which are expected to admit on or around 19^th March 2024 ("Admission").

After settlement of the Quarterly Repayment, the principal remaining under the Convertible Bond will be reduced by US$2.45 million to US$26.95 million.

Total Voting Rights

Immediately following admission, the Company's enlarged issued share capital admitted to trading on AIM will consist of 944,218,427 ordinary shares, with each share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury. The total voting rights figure of 944,218,427 may be used by shareholders (and others with notification obligations) as the denominator for the calculations by which they will determine whether they are required to notify their interest in, or a change to their interest in, the Company under the Disclosure Guidance and Transparency Rules.

David Hobbs, Executive Chairman, said: "Having paid the last two quarterly convertible bond repayments in cash rather than stock, funded by private placements to supportive long term shareholders, we have decided to satisfy the March 2024 quarterly instalment in shares, allowing us to apply the funds freed up towards the acquisition of 66,240 new acres awarded and announced in December 2023, payment of which is estimated to occur in late Q2 or Q3 of this year. As already announced, the new acres are covered by our proprietary 3D seismic, add enormous resource potential, and are contiguous and adjacent to Pantheon's existing acreage and will be covered in Netherland Sewell's ongoing work on Kodiak and Ahpun. It was important to secure these extensions to our existing Kodiak and Ahpun projects both to protect project timelines to the extent possible and to utilise the competitive advantage of that proprietary seismic before the scheduled public release of key tranches of the seismic data."

-ENDS-

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Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas company focused on developing the Ahpun and Kodiak fields located on state land on the Alaska North Slope ("ANS"), onshore USA, where it has a 100% working interest in c. 193,000 acres. In December 2023, Pantheon was the successful bidder for an additional 66,240 acres with very significant resource potential, contiguous to the Ahpun and Kodiak projects. Following the issue of the new leases, which are expected to be formally awarded in summer 2024 upon payment of the balance of the application monies, the Company will have a 100% working interest in c. 259,000 acres. Certified contingent resources attributable to these projects exceeds 1 billion barrels of marketable liquids, located adjacent to Alaska's Trans Alaska Pipeline System ("TAPS").

Pantheon's stated objective is to demonstrate sustainable market recognition of a value of $5-$10/bbl of recoverable resources by end 2028. This is based on targeting Final Investment Decision ("FID") on the Ahpun field by the end of 2025, building production to at least 20,000 barrels per day of marketable liquids into the TAPS main oil line, and applying the resultant cashflows to support the FID on the Kodiak field by the end of 2028.

A major differentiator to other ANS projects is the close proximity to existing roads and pipelines which offers a significant competitive advantage to Pantheon, allowing for materially lower infrastructure costs and the ability to support the development with a significantly lower pre-cashflow funding requirement than is typical in Alaska.

The Company's project portfolio has been endorsed by world renowned experts. Netherland, Sewell & Associates ("NSAI") estimate a 2C contingent recoverable resource in the Kodiak project that total 962.5 million barrels of marketable liquids and 4,465 billion cubic feet of natural gas. NSAI is currently working on estimates for the Ahpun Field.