Thread by @ValueSituations

Pantheon Resources $panr $pthrf CEO Jay Cheatham gave a brief update interview yesterday with @EdAtProactive - Here are the key takeways IMO:

proactiveinvestors.co.uk/search/advance…

1. Valuation – it was highlighted that over last 12 months $panr shares have gone 2x to a mkt cap of ~$550m (at time of interview recording) since the last fundraise when $30m was placed in Nov-20 at £0.31/share -

While this seems like a strong performance, Jay Cheatham highlighted a number of relevant points to put this in context:
1.A. At time of Nov-20 f/r oil was $40/barrel – today oil is ~$75 & the impact of oil increase to NPV of Alkaid project ALONE more than offsets the 2x increase

1.B. Since Nov-20 $PANR ‘s asset base has increased substantially –it acquired a 10.8% interest in Talitha that did not own in Nov-20 & 85k acres of Theta West in Jan-21 (comprising ~12bn barrels OIP/~1.4bn recoverable), which gave PANR 12 bn BBO OIP / 1.4 bn recover

1.C. Completed successful testing at Talitha A well. In sum, $PANR asset base & prospects have been meaningfully de-risked yet this is not priced into the stock, which only reflects the oil price move over LTM (& which is now forecast to rise further given supply/demand imbalance

2. Farm Out/Funding – regarding this key catalyst, negotiations are underway & “quite advanced” – Jay Cheatham emphasised mgt have always been upfront about requiring funding & have an aggressive winter drilling programme, to cost $47m - $51m -

- at the current share price of ~£0.72, a placing to raise ~$50m implies dilution of just ~6% - 7% (fully diluted basis)

3. Dual listing – Cheatham mentioned that management would consider a dual listing post the winter programme, stating they recognise it would “help our shareholders and our share price” - IMO a US mkt listing would be a further catalyst, enhancing liquidity & profile of $panr

4. Final takeaway - it was higlighted again management’s 40-50 years in oil exploration & development, so $PANR is the “last endeavour that many of us undertake,” which Cheatham believes will be that best that he’s seen in his career.

In summary - very positive update that further highlights the disconnect between price and asset value, with a near-term catalyst being the farm-out/funding in Q4.