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LONDON (Alliance News) - Pantheon Resources PLC Wednesday said it has raised USD30.0 million after issuing almost 18.4 million new shares in the company at a discounted price.
Pantheon originally announced the placing on Tuesday, revealing it would issue the shares at 115.0 pence each, which was a 13% discount to Pantheon's closing share price on Monday.
Pantheon shares were trading up 1.1% to 130.38 pence per share on Wednesday morning.
Importantly, Pantheon originally said it was only aiming to issue 15.3 million new shares to raise USD25.0 million.
The new shares that have now been issued represent around 8.5% of Pantheon's enlarged issued share capital.
"With money in the bank we will immediately begin preparations to spud our next well, which will be a horizontal development well offsetting VOBM-1. Subsequent wells will follow immediately thereafter. 2016 will certainly be an exciting year for Pantheon," said Chief Executive Jay Cheatham.
The company has a 50% working interest in four prospects in Tyler and Polk Counties in East Texas, where it has drilled two successful exploration wells.
Pantheon said it plans to spend USD8.5 million of the proceeds to drill three new wells on its acreage, the first of which will be a horizontal development well from the VOBM-1 well in Polk County at a cost of USD2.6 million.
The second well will be a horizontal step-out/appraisal well in Polk, and cost another USD2.6 million. The third well will be a "large step-out deviated" well in Tyler, costing slightly more at around USD3.3 million.
Another USD1.0 million of the proceeds will be used to frack the VOS-1 well.
Additional exploration and development drilling across its portfolio will cost a further USD8.0 million, and another USD4.0 million will be spent to purchase more land in the US to consolidate its portfolio with its joint venture partners.
Another USD1.0 million of the proceeds will be swallowed up by joint venture payments, taking the total expenditure of all that work up to USD22.5 million.
Pantheon said remaining proceeds will be used for working capital and "deal expenses".
"This placing will enable us to exploit commercially the full potential of our acreage position, taking advantage of materially falling costs in the mid and upstream sectors of the industry to deliver attractive returns for our shareholders," said Chief Executive Jay Cheatham.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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