30th Sep 2014 13:23
LONDON (Alliance News) - Pantheon Resources PLC saw its shares fall Tuesday after it raised GBP18.5 million in a discounted placing, money it will use to increase its working interest in its Kara Farms joint venture in Texas to 50%, from 25%, and take interests in new prospects.
In a statement, Pantheon said it had conditionally placed 92.6 million shares at 20 pence each in a firm placing and conditional placing. It needs shareholder approval at a meeting later this month for the conditional placing of 33.6 million shares.
It said the money will be used to increase its working interest in the Kara Farm prospect acreage in Tyler County, Texas to 50%, buy a 50% working interest in oil and gas leases which joint venture partner Vision is in the process of acquiring in three new project areas in Tyler and Polk Counties and in some other leases, and to fund its obligations in the drilling of two wells to test the Woodbine/Eagleford sandstone on the Kara Farms acreage.
"This transaction is accretive to all shareholders given that we are doubling our interest in the existing Kara farms acreage for less than a doubling of shares in issue," Chief Executive Jay Cheatham said in a statement.
"Additionally, the company intends to acquire a 50% working interest in four new prospects. Subject to successful acquisition of these interests, the company's acreage will comprise a total net attributable P50 Prospective Recoverable Resource Estimate of 150.5 Million Barrels Oil Equivalent. Our new net acreage prospect of circa 24,729 acres is several times our current acreage," he added.
Pantheon Resources shares were down 10.4% to 20.06 pence Tuesday afternoon as the placing set a new reference price.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Pantheon Resources plc