Pancontinental Faces Key Woodside Deadline Amid Renewed Namibia Drilling Activity

Technical Advances in PEL 87

Pancontinental Energy NL (ASX: PCL) has delivered a robust quarterly update for the December 2024 period, highlighting significant progress in its flagship PEL 87 permit offshore Namibia. Recent technical studies leveraging advanced 3D seismic data and AI-driven geomodelling have substantially improved the understanding of the Saturn complex’s reservoir potential. The identification of turbidite reservoir sands, supported by Type II AVO anomalies, marks a pivotal step in de-risking the geological prospectivity of the area.

The company engaged an independent sequence stratigrapher to analyse the 6,593 km2 3D seismic dataset using PaleoScan™ software, producing a chrono-stratigraphically consistent geological model. This model reveals complex depositional systems with repeated cyclic geometries and evidence of sediment winnowing that enhances reservoir quality by concentrating coarser sands. These insights underpin Pancontinental’s confidence in two primary exploration leads, Oryx and Hyrax, which collectively cover up to 1,385 km2 and exhibit promising stratigraphic and structural trapping mechanisms.

Strategic Partnership and Licence Milestones

During the quarter, Pancontinental delivered a seismic license for the PEL 87 3D data to Woodside Energy, establishing a Long Stop Date of 18 May 2025 for Woodside to exercise its option to farmin. This milestone is critical as Woodside’s participation could accelerate exploration and development activities in the permit. Pancontinental retains a 75% interest in PEL 87, with Woodside’s option covering a 56% participating interest derived from Pancontinental’s stake.

Namibian Orange Basin Drilling Resurgence

The broader Namibian Orange Basin has seen a resurgence in exploration and appraisal drilling, with at least eight wells completed, underway, or planned by various operators. Notably, Galp Energia’s Mopane discovery continues to deliver encouraging results, with Mopane-2X confirming a significant light oil column in high-quality sandstone reservoirs. The ongoing Mopane-3X well targets stacked prospects, with results anticipated in February 2025. Galp maintains its predrill resource estimate of 10 billion barrels of oil-in-place, underscoring the basin’s potential.

Other operators such as TotalEnergies and Rhino Resources are actively drilling and appraising nearby prospects, while Chevron’s maiden well in PEL 90 did not encounter commercial hydrocarbons. Shell’s recent $400 million write-off in PEL 39 highlights the technical and economic challenges posed by associated gas volumes and reservoir quality, though exploration efforts in Namibia remain ongoing.

Financial Position and Corporate Governance

Pancontinental closed the quarter with a cash balance of $3.6 million, providing a solid financial foundation to support its exploration activities. The company’s Annual General Meeting held in November 2024 saw all resolutions approved, reflecting shareholder confidence in the current strategy. Payments to related parties amounted to $140,000 during the quarter, consistent with director remuneration.

Looking ahead, Pancontinental’s focus will be on refining prospective resource estimates and geological chance of success for the Oryx and Hyrax leads, alongside monitoring ongoing drilling results in the Orange Basin. The interplay between technical advancements and strategic partnerships positions Pancontinental to potentially unlock significant value in a region gaining renewed industry attention.