Pantheon Resources' maiden revenues wiped out by impairment charges

Oil and gas explorer Pantheon Resources recorded its first revenues in its recently wrapped up trading year after production kicked off at three of its wells but saw losses widen as a result of impairments.

Pantheon, which holds a 50% working interest in four projects within the jointly leased Tyler and Polk counties in the US state of Texas, and a further 25% interest in another project, recorded maiden revenues of $1m in the year ended 30 June.

While net total sales production came to 203bn cubic feet of natural gas and 7,326 barrels of oil, Pantheon's pre-tax losses widened 417% to $8.8m, principally due to a $6.8m impairment of intangible assets.

Cash and equivalents contracted 22% to $3.4m.

Chief executive Jay Cheatham said: "During the year we maintained progress towards our stated objective, but it was not without challenges."

"Operational difficulties and mixed quality of service providers all contributed to hampering the rate of progress made during this time. However, we have strengthened the operational and technical capabilities of the company."

Elsewhere, the AIM-traded outfit announced its intention to raise up $16m by way of new ordinary shares at a price of no less than 15.25p each.

Pantheon will acquire two wholly owned subsidiaries of Great Bear Petroleum with the funds raised.

As of 1200 GMT, Pantheon shares had dropped 5.20% to 16.59p.