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.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Conor Maguire | Value Situations

Conor Maguire | Value Situations Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @ValueSituations

28 Sep
I'm a fundamental analyst and don't subscribe to technical analysis, but sometimes a chart can tell an interesting story better than words can - I've been looking at energy commodity charts while studying $panr and some observations -
#Oil is a real laggard vs. #natgas and #coal - despite being up ~55% YTD it hasn't really participated in the energy price surge to same extent as its fellow fossil fuels - here's the price lag YTD, showing oil is well behind:
Here's oil lagging over last 3 yrs chart -
Read 7 tweets
28 Sep
Oil in the news again this morning as global energy concerns increase - oil now at a 3 year high above $80/barrel, and $panr is up ~5.5% on the London AIM market this morning -
Read 6 tweets
5 Jul
Great investment ideas are found by turning over lots of rocks. In my newsletter today I wrote about how creative thinking is essential to finding which rocks to look under for ideas.
How about a thread on how Dr. Michael Burry used creative thinking to find a great idea?👇👇👇
1) Burry recognised that he needed to find unorthodox ways to tilt the market to his advantage, and that usually meant finding unusual situations the world might not be fully aware of. This led him to think creatively about how he searched for new ideas.
2) In 2001, Burry came across Avant! Corporation, a software business that was subject to a lawsuit from a competitor accusing it of stealing trade secrets. Burry found Avant! by searching for legal news stories that might lead to an investment thesis.
Read 14 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!

:(