Pantheon losses narrow in full-year results

Pantheon Resources reported a loss from continuing operations of $1.5m after tax in its final results on Tuesday - a significant improvement from its $13.9m loss year-on-year.

The AIM-traded firm said the result was influenced by non-cash factors, including accounting for a convertible bond, which included $6.1m in interest charges, up from $4.6m in 2022, and a positive revaluation of the derivative component of its convertible bond amounting to $11.3m, up from $4.3m.

It also completed a fundraising effort in May, raising $22m.

Notably, the convertible loan balance owed decreased from $44.1m at the start of the financial year to $29.4m as of the publication date, taking into account the December quarterly repayment.

Looking at its financial position, as of 13 December, Pantheon held unaudited cash and cash equivalents of $7.8m.

That figure considered a $2.8m bond repayment in cash and a $0.44m deposit for December lease auctions.

Additionally, the company expected to receive an additional $4.1m in proceeds from its November placing, anticipated in late January.

Pantheon said it was actively engaged in discussions with service providers and industry participants to explore potential vendor financing and non-equity-based financing opportunities.

Operationally, Pantheon said testing at Alkaid-2 supported the economic viability of full-field developments for both the Ahpun and Kodiak projects.

The company received an independent expert report on the Kodiak project from Netherland, Sewell & Associates (NSAI), which estimated a 2C contingent resource of 962.5 million barrels of marketable liquids.

Additionally, phase one of the SLB reservoir modelling project was completed, with SLB estimating that Pantheon's acreage contained 17.8 billion barrels of oil in place.

"The period from 1 July 2022 until now has been one of immense progress and achievement for Pantheon," said chief executive officer Jay Cheatham.

"In fact, only last week, we were the successful bidder for over 66,000 highly strategic acres contiguous to the west and east of our existing leases."

Cheatham said the data gathered and technical work done in 2023 underpinned the firm's confidence in the commerciality of its projects.

"We remain laser focused on pursuing our goals for a final investment decision on Ahpun by the end of 2025 and on Kodiak by the end of 2028, and to achieve sustainable market recognition of $5 to $10 per barrel of 1P/1C recoverable resources."

At 1129 GMT, shares in Pantheon Resources were down 0.26% at 22.76p.

Reporting by Josh White for Sharecast.com.