PEL 87 Prospective Resources Rise to 1.87 Billion Barrels Net at Pancontinental
Pancontinental Energy has upgraded its prospective oil resources offshore Namibia’s Orange Basin, raising estimates and geological confidence for its PEL 87 project. The company also identified new prospectivity at Phoebe West, signaling growing exploration potential.
- Best Case prospective resources for Oryx increased to 815 million barrels net
- High Case prospective resources for Oryx reach 1.87 billion barrels net
- Geological Chance of Success for Oryx improved to 26.2%
- Single well location now targets three intervals consolidating multiple leads
- New prospectivity identified at Phoebe West lead
Upgraded Resource Estimates
Pancontinental Energy NL (ASX – PCL) has announced a significant upgrade to its prospective oil resources for the PEL 87 exploration permit located offshore Namibia in the Orange Basin. The company’s latest Quantitative Interpretation (QI) study has led to a revision of resource estimates, particularly for the flagship Oryx prospect. The Best Case (2U) prospective resources for Oryx have been raised to 815 million barrels net to Pancontinental, while the High Case (3U) now stands at 1.87 billion barrels net. This marks a notable increase from previous estimates and reflects improved understanding of the reservoir system.
Improved Geological Confidence
Alongside the resource upgrade, Pancontinental has increased the Geological Chance of Success (GCoS) for the Oryx prospect to 26.2%, up from 22.5%. This improvement stems from seismic synthetic modelling that indicates a hydrocarbon fluid effect consistent with low gas-oil-ratio oil. The enhanced GCoS suggests a higher likelihood that exploration drilling will encounter commercially viable hydrocarbons, reducing some of the exploration risk inherent in early-stage offshore projects.
Consolidation of Leads into a Single Well
One of the strategic outcomes of the updated interpretation is the consolidation of multiple leads, previously identified as Oryx, Calypso, and Addax Channel, into a single well location. This well is expected to test three discrete intervals, collectively representing a combined High Case prospective resource of approximately 2.5 billion barrels of oil. This approach optimises exploration capital by targeting multiple targets simultaneously, potentially accelerating the path to discovery.
New Prospectivity at Phoebe West
Beyond Oryx, Pancontinental’s ongoing QI screening has revealed additional prospectivity at the Phoebe West lead, interpreted as a basinal turbidite fan feature. This new target lies external to the Saturn Complex and is fed by a northern channel clastic bypass system. While still under evaluation, Phoebe West adds another dimension to the PEL 87 permit’s exploration potential and may represent a future drilling opportunity.
Context Within the Orange Basin
PEL 87 is situated in a prolific hydrocarbon province, with recent discoveries by major players such as Galp Energia, TotalEnergies, and Shell nearby. Awarded in 2018, the permit is currently in its first renewal exploration period, which includes a commitment to drill one exploration well or acquire additional seismic data by early 2026. Pancontinental’s technical advancements and resource upgrades position the company well as it approaches this critical drilling milestone.
Bottom Line?
With upgraded resources and higher success odds, Pancontinental’s PEL 87 is poised for a pivotal exploration phase.
Questions in the middle?
- When will Pancontinental drill the consolidated Oryx well to test the upgraded prospects?
- What further details will emerge from the ongoing evaluation of the Phoebe West lead?
- How might these resource upgrades influence Pancontinental’s valuation and partner interest?