London-listed Pantheon Resources (AIM:PANR) has successfully acquired approximately 27,840 acres in the State of Alaska, expanding its footprint in the region’s North Slope.
The company had a successful bidding at the North Slope’s Areawide lease sale held overnight in Alaska.
In a statement released this morning, the oil and gas company explained the new leases to be ‘strategically positioned’ in areas contiguous or adjacent to existing acreage held.
Pantheon acknowledged its competitive advantage in bidding for the acreage on the basis that it owns the proprietary 3D seismic covering the leases that wasn't accessible to any third parties.
Shares in Pantheon Resources were trading 8.02% higher at 15.90p on Thursday at midday.
The leases, once awarded by the State of Alaska in around 6 to 12 months, will come with an initial 10-year term, an annual rental of $10 per acre for the first seven years, and a royalty rate of either 12% (8 leases) or 16.67% (9 leases).
The company explained how these additions would allow the group to ‘strategically high grade’ their acreage based on recent technical completed work.
Bob Rosenthal, Technical Director of Pantheon hailed the acquisition as “a very successful outcome” for the group who have spent nearly ten years working the acreage.
"Having watched the evolution of these plays as the combination of the 3D seismic and the petrophysical analysis developed, I'm ecstatic to have been the successful bidder on this acreage where we clearly had a major advantage,” said Pantheon’s Chief Executive, Jay Cheatham.
The acquisition holds particular value for Pantheon who have identified geological plays which are close to being matured to drilling status, Rosenthal explained.
He added: “The forward program on these leases will be to appraise these projects by drilling and moving to exploit these resources.”
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