Business
Acquisition of Increased Working Interest
Acquisition of Increased Working Interest.
About this update from Pantheon Resources Plc
[{"type":"text","content":"\n \nRNS Number : 5320E Pantheon Resources PLC 19 July 2016 \n \n\n \n19 July 2016\n \nPantheon Resources plc \n \nAcquisition of Increased Working Interest in Polk County Prospects\n \n \n \nPantheon Resources plc (\"Pantheon\" or \"the Company\"), the AIM-quoted oil and gas exploration company with a 50% working interest in several projects in Tyler and Polk Counties, onshore East Texas, is pleased to provide the following operational update:\n \n \nAcquisition of Additional Working Interest in Polk County, East Texas\n \nThe board of Pantheon is pleased to announce the acquisition of an additional 8% working interest in the \"West Double A\"* and \"West West Double A\"** prospects (previously referred to respectively as \"New Prospect A\" and \"New Prospect D\"), located in Polk County, East Texas. Upon completion of the acquisition, Pantheon's working interest in these two prospects, including the VOBM#1 discovery well, will increase from 50% to 58%. Pantheon's working interest in its Tyler County prospects remains unchanged at 50% and its working interest in \"New Prospect E\" remains unchanged at 25%.\n \nPurchase consideration for the 8% working interest comprises an up front cash payment of US$6.5m, plus an additional 20% of the drilling and completion costs of the VOBM#2H and VOBM#3H wells, estimated to be between US$1.0m and US$1.25m per well. In relation to the 8% working interest acquired, Pantheon will benefit from an accelerated payback mechanism whereby it will receive a 2.5x uplift on production revenues until such time as the acquisition cost has been recouped, at which point revenues will revert back to an 8% revenue interest.\n \nThe opportunity to acquire this additional working interest at a favourable price has arisen as a result of an internal reorganisation within the privately-owned Vision group. By mutual agreement no third parties have been involved. The transaction maintains the confidentiality of intellectual property within the group, minimises mid-drilling disruption and reinforces the excellent established relationship between Pantheon and Vision.\n \n \nJay Cheatham, CEO of Pantheon, said:\n\"This transaction is a fantastic opportunity for Pantheon to increase our interest in these two outstanding prospects, where w...