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Pantheon Resources’ oversubscribed funding is a show of force - broker

Published: 07:27 17 May 2023 EDT

Pantheon Resources PLC - Pantheon Resources’ oversubscribed funding is a show of force - broker

Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) new and oversubscribed US$22mln equity funding represents a “show of force” and could lead to a rerating of the explorer’s shares, that’s according to stockbroker WH Ireland.

In a statement this morning Pantheon confirmed it had closed the books on a brief and successful bookbuild process which initially sought to raise US$10.5mln - it will now issue 104.17mln new shares priced at 17p each through the placing.

Further shares will also raise further funds through a retail offer on the PrimaryBid platform.

Cash proceeds are expected to help pay for another well test along with commissioning a new competent persons review of the company’s assets on the North Slope and other desktop work to advance the company’s discoveries.

“Most significantly, the show of robust institutional equity support for Pantheon Resources is itself a very significant development that, in our opinion, represents a turning point for company,” WH Ireland analyst Brendan Long said in a note.

“We make that statement in a context where equity capital raises and IPOs are at multi-year lows, while recognising that funding is critical for early-stage oil & gas appraisal projects – this is a show of force that essentially alleviates the most significant challenge for the company, namely, funding.”

He added: “The immediate catalysts outlined by the company, namely, an additional well test, critical technical reports on key assets and comprehensive subsurface work and modelling will, in our opinion, provide a solid platform on which to open a data room to potentially partially farm-down the company’s 100% working interests in exchange for funding and or work commitments.

“We highlight that the investment thesis supporting Pantheon Resources has not changed since they entered Alaska; it has however been strengthened significantly by the progress made by the company, today’s announcement is a ringing show of support that provides further strength to the investment opportunity.”

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