Pantheon Resources, the AIM-quoted oil and gas exploration company with working interests of 89.2% - 100% in certain projects located adjacent to transportation and pipeline infrastructure on the Alaska North Slope, has reached agreement with Otto Energy Alaska, a 100% subsidiary of Otto Energy, to acquire its 100% ownership of Borealis Alaska LLC.
Borealis Alaska owns a 10.8% working interest in each of the 16 leases in the 44,463 acre Talitha Unit. Upon completion of the acquisition, Pantheon will own a 100% working interest in the Talitha Unit. By way of an ealier transaction, Otto will retain a 0.5% overriding royalty interest in any future production from the Talitha Unit.
Following this purchase and Pantheon's success in the State of Alaska lease sale last week, Pantheon will hold a 100% working interest in approx. 161,000 acres. Pantheon currently has an 89.2% working interest and a 77.05% net revenue interest in the Talitha Unit. Post the Otto transaction, Pantheon will have a 100% working interest and an 86.0% net revenue interest in the Talitha Unit.
As purchase consideration, Pantheon will issue to Otto 14,272,592 ordinary fully paid shares, subject to a lock-up until 30 June 2021. The transfer of ownership is conditional upon approval by the Alaska Department of Natural Resources, which is fully expected but estimated to take a number of weeks. Accordingly, the issue and subsequent admission to trading of the Consideration shares will not occur until that time.
Jay Cheatham, CEO, said:
'We are very pleased to acquire this working interest from Otto. We will now have a 100% working interest in the Talitha Unit at the same time we are drilling ahead with the Talitha #A well. Following completion of this transaction, Pantheon will have a 100% working interest in all of its Alaska North Slope projects. Otto was a good partner and we welcome them as a shareholder where they can continue to enjoy exposure to the Talitha project as well as to the remainder of our Alaska North Slope portfolio.'
