It’s been a while since PANR last caught my eye. Having plugged the stock 2 years ago at 17p, the subsequent rise to 180p was astonishing and justified. Drilling success was soon replaced with reality. Mother nature has a habit of making the extraction of Oil and Gas as hard as possible. Throwing up fractures, faults and rock formations that act like steel.
Pantheon have acknowledged that mistakes were made with the planning and drilling of horizontal wells. Lessons have been learned and a new strategy prepared.
Last week the company completed a quick fund raise at 43p for $12.5m. The funds will be used to see the company through the next drilling phases and to cash flow positive gas/oil sales. The latter has been boosted by the recently signed Gas agreement with Kinder Morgan, the US’s largest energy infrastructure company, to build and operate a 15mmcf/d dedicated gas processing facility for Polk County operations.
It’s been a tough 9 months for current PANR investors and particularly for the II’s that took on the March 2016 placing at 115p. The promise and potential remains the same today as it did back then. Hence, looking at the typical share price drift post 115p placing, the stock found a decent footing at 70p/80p levels. The drift from 70p down to 45p looks entirely driven by funding concerns and lack of news catalysts. That’s quite a hefty slice but with ‘interested parties’ now fully lined up with 43p priced shares, I would expect the stock to get a jog on north without too much delay. Of course, there is probably some fluff and post placing confetti to clear first but I doubt that’s going to take too much longer. It would not surprise me one bit to see the stock move back into the 50’s in the next week or two. From there on, the stock and share price will move with positive or negative news and at last investors can begin to look forward to the type of drill catalysts that saw the sp move from 17p to 180p.
It might take a few months yet before the cash flows come in but 2018 could be a very strong year for PANR.L. For a full insight into what’s lined up in the coming days and weeks, see Pantheon’s website and do some thorough research. I’m not going to make it easy for you…and always prefer investors do some leg work themselves. This is purely a ‘heads up’ post.
TheShareHub is initiating coverage on PANR at 45.5p with a 2017 target of 96p which assumes ‘some’ level of success with upcoming operations. Targets will be revised up or down as and when news flows. And yes… I am a holder of PANR.
Strap yourselves in… Pantheon looks ready for launch again!
Usual Risk caveats apply. See column on right hand side for more info.