Pantheon Resources: A Game-Changer in Oil and Gas Exploration

In the ever-evolving landscape of oil and gas exploration, Pantheon Resources PLC has made a bold move that could redefine its future. On March 25, 2025, the company announced the successful closing of a US$35 million senior convertible bond issuance, a strategic financial maneuver that promises to bolster its operational capabilities and financial stability. This move is not just a financial transaction; it's a testament to Pantheon's commitment to sustainable growth and strategic investment.



The convertible bond issuance, due March 2028, was led by Sun Hung Kai & Co. Limited and its affiliates, clients, and managed funds. This infusion of capital is a game-changer for Pantheon, providing the liquidity needed to execute its planned operational goals for at least the next 12 months. The proceeds will be used to repay the outstanding principal of $12.25 million on the existing convertible bonds due in 2026, thereby removing the need for quarterly interest and amortization payments. This financial flexibility is crucial as Pantheon continues to progress towards its Final Investment Decision (FID) for the Ahpun project, targeted to occur near the end of 2027.

The strategic advantages of this convertible bond issuance are manifold. Firstly, it provides Pantheon with the liquidity needed to continue its development planning and progress towards the FID for the Ahpun project. Secondly, the convertible bonds offer flexibility in terms of repayment. The bonds have an investor conversion price of $0.8675 and an issuer conversion right after 12 months if the Company's share price exceeds $1.119. This means that if the company's share price increases, the bonds can be converted into equity, reducing the debt burden on the company.

Moreover, the proceeds from the convertible bond issuance will be used for general corporate purposes, including additional costs for flow testing of the Megrez-1 well resulting from additional high-potential zones identified. This will allow the company to further delineate the Ahpun East area during the summer of 2025, a critical step in its development strategy.



The successful closing of the US$35 million convertible bond issuance enhances Pantheon's financial stability by providing immediate liquidity and reducing short-term financial pressure. In the long term, it supports sustainable development, strategic investments, and leverages government support to achieve its operational goals. The increasing support from federal and state governments on Phase 1 of the Alaska LNG project further enhances Pantheon's long-term prospects. This support is anticipated to be supplied under the terms of the Gas Sales Precedent Agreement between the Company and pipeline proponents, providing a stable framework for future operations.

In conclusion, Pantheon Resources PLC's strategic financial maneuver is a bold step towards achieving its long-term goals. The convertible bond issuance provides the company with the liquidity and flexibility needed to continue its development projects, particularly the Ahpun and Kodiak fields, while also providing a potential path to reduce its debt burden through equity conversion. This move is a testament to Pantheon's commitment to sustainable growth and strategic investment, and it positions the company for success in the competitive oil and gas exploration landscape.