Pantheon Resources PLC (AIM:PANR, OTC:PTHRF) said it entered into a short-term draw down facility of US$1.5mln with an existing shareholder.
The oil and gas company said the funds will be used to secure equipment, goods and services ahead of the planned winter drilling programme on its Alaska North Slope projects.
It said global supply chain constraints have lengthened the lead times for securing equipment for its Alaska drilling campaign and it needs to order key equipment and materials soon to minimise the risk of disruption to drilling operations.
The unsecured drawdown facility carries an annual interest rate of 10% and can be repaid in full at any time at the company's election, the AIM-listed company said in a statement.
Pantheon has previously announced that it must complete either a farmout or funding in the final quarter of this year to have sufficient resources for the winter 2021/2022 drilling and testing campaign and for ongoing working capital.
The company said it is actively engaged in negotiations for a potential farmout and funding options, adding that it is optimistic about completing its financing objectives this quarter.
READ: Pantheon Resources remains focused on finding farm-in partner
The upcoming winter drilling campaign aims to test all untested zones of the Talitha #A well and to drill at least one other well at either Alkaid or Theta West.
The necessary permitting applications have been submitted to the Alaskan authorities in good time and the company has lined up the contractors and supplies required to complete the operational programme in its entirety.
"In line with our previous guidance, we are working to complete our financing this quarter for our forthcoming winter programme,” said Jay Cheatham, chief executive of Pantheon Resources.
“This facility is a precaution against short-term supply issues by ensuring we are prepared as possible for drilling and testing in the New Year. As always, we must caution that there can be no guarantees until a financing deal is signed.”