12th Dec 2019 13:00
(Alliance News) - Pantheon Resources PLC on Thursday said that it has acquired additional leases adjacent to the company's existing acreage in the US state of Alaska.
The oil & gas explorer has secured 27,840 acres in Alaska's North Slope Areawide Lease sale at an average bid price of USD30.50 per acre, worth around USD849,120 in total.
Pantheon said it had a competitive advantage in bidding for the acreage as it owns the 3D seismic survey covering the leases.
"These acreage additions are a direct result of detailed technical work completed by Pantheon and its consultants at eSeis over recent months, which includes comprehensive Hi-Tech Geophysical evaluation of the area," the company explained.
The leases will be officially awarded by Alaska in 6 to 12 months and will come with a 10-year initial term. It will bear an annual rental of USD10 per acre for the first seven years and a royalty rate of either 12% for 8 leases or 16.67% for 9 leases.
Jay Cheatham, Pantheon chief executive, said: "This new acreage adds significant and material potential to our prospect inventory and will allow Pantheon to continue to strategically high-grade our lease position going forward."
Pantheon Resources shares were up 7.3% at 15.80 pence each in London on Thursday afternoon.
By Tapan Panchal; [email protected]
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