Pantheon Resources plc (AIM:PANR, OTCQX: PTHRF) ("Pantheon"), an oil and gas company developing the Kodiak and Ahpun oil fields in close proximity to pipeline and transportation infrastructure on Alaska's North Slope, notes the announcement made by Alaska Gasline Development Corporation ("AGDC").
AGDC announced that the Alaska Industrial Development and Export Authority ("AIDEA") has approved a resolution to negotiate a letter of credit with the AGDC to backstop the costs of Front End Engineering and Design ("FEED") on Alaska LNG Phase 1, the in-state pipeline portion of Alaska LNG.
Key Points for Pantheon
- AGDC is the owner of the Alaska LNG Project and the resolution is a key step to securing private investment in the project and moving to a Final Investment Decision ("FID").
Pantheon and AGDC signed a Gas Sales Precedent Agreement in June 2024 (the "GSPA") which includes, among other conditions, a requirement for the Alaska LNG project to reach FID (see RNS dated 05 June 2024).
- The value of a take or pay contract under a Gas Sales Agreement based on the terms of the GSPA, if finalised, could potentially allow Pantheon to secure funds required to cover capital costs from the point of Ahpun FID to cash-flow self-sufficiency.
David Hobbs, Executive Chairman of Pantheon Resources, said: "We continue to work closely with AGDC and the key decision makers in the State of Alaska to ensure that Alaskans get the maximum benefit from gas resources on the North Slope and to secure an infrastructure project essential to the long term energy security of the State and with positive impacts on US national security."
