Pancontinental Energy’s latest technical update reveals promising hydrocarbon potential in the PEL 87 offshore Namibia project, supported by advanced seismic and basin modelling studies. These findings set the stage for revised resource estimates later this month.
- Basin modelling confirms mature Kudu source rock with over 20 billion barrels oil generation potential
- Quantitative Interpretation (QI) analysis indicates high net-to-gross reservoir quality with hydrocarbon indicators
- Saturn Complex positioned advantageously for hydrocarbon charge with limited migration distance
- Gas-oil ratio predicted to be moderate, easing future development challenges
- Updated resource and geological risk assessments expected by late July 2025
Technical Advances Illuminate PEL 87 Prospectivity
Pancontinental Energy NL has delivered a significant technical update on its PEL 87 exploration permit in Namibia’s Orange Basin, reinforcing the prospectivity of the Saturn Complex and surrounding areas. The company’s recent studies combine detailed seismic data analysis with basin modelling to paint a clearer picture of the subsurface hydrocarbon system.
The basin modelling, conducted with specialist input, confirms the widespread presence of the Kudu Shale formation, a world-class source rock known for generating light oil in the region. This formation, proven at the Moosehead-1X well within PEL 87, exhibits robust organic content and thickness, underpinning a mature hydrocarbon kitchen directly beneath the Saturn Complex. The model estimates that this kitchen has generated and expelled in excess of 20 billion barrels of oil, a volume sufficient to fully charge the Saturn prospect inventory.
Seismic Insights Support Reservoir Quality and Hydrocarbon Presence
Complementing the basin modelling, Pancontinental engaged a Quantitative Interpretation (QI) specialist to analyze 3D seismic data with rock physics trends from regional wells. This analysis identified Class II AVO anomalies consistent with hydrocarbon fluid effects, coinciding with intervals interpreted as high net-to-gross sandstone reservoirs within the Saturn Complex. The presence of channel forms within the Oryx Prospect further supports the depositional model of turbidite reservoirs, enhancing confidence in reservoir quality and hydrocarbon presence.
Importantly, the predicted gas-oil ratio (GOR) for the Saturn Complex is moderate, around 200 scf/bbl, suggesting fewer development challenges compared to nearby discoveries with higher associated gas volumes. This could bode well for future production scenarios, assuming commercialisation proceeds.
Strategic Implications and Next Steps
These technical advances will feed into Pancontinental’s upcoming revision of prospective resource estimates and geological risk assessments, targeted for release in late July 2025. Given the scale of the generative kitchen and encouraging seismic indicators, the updated figures could materially enhance the valuation and attractiveness of PEL 87 within the competitive Namibian offshore landscape, where major players like TotalEnergies, Shell, and Galp Energia have also made significant discoveries.
While the results are promising, the company notes that further QI screening is ongoing, and resource estimates remain subject to revision. Nonetheless, the current data positions Pancontinental well to capitalise on the growing interest in the Orange Basin’s hydrocarbon potential.
Bottom Line?
Pancontinental’s PEL 87 is shaping up as a compelling exploration asset, with upcoming resource updates likely to sharpen investor focus.
Questions in the middle?
- How will updated prospective resource estimates compare to current figures?
- What are the implications of the moderate gas-oil ratio for development plans?
- Could further QI screening alter the confidence in hydrocarbon presence within Saturn Complex?