Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) has highlighted support received for a pipeline project in Alaska that promises to boost its assets on the North Slope.
The Alaska Industrial Development and Export Authority (AIDEA) has approved a resolution to negotiate a letter of credit with the Alaska Gasline Development Corporation (AGDC), the company noted in a statement.
This will back the costs of Front End Engineering and Design (FEED) for Phase 1 of the Alaska LNG pipeline project, which would be positive for Pantheon.
Previously, Pantheon signed a Gas Sales Precedent Agreement (GSPA) with AGDC in June, and if that preliminary agreement is secured in a gas sales agreement it would unlock funding to enable Pantheon to advance its Ahpun project to production and achieve cash flow self-sufficiency.
"We continue to work closely with AGDC and the key decision makers in the State of Alaska to ensure that Alaskans get the maximum benefit from gas resources on the North Slope and to secure an infrastructure project essential to the long term energy security of the State and with positive impacts on US national security,” executive chair David Hobbs said.