Pancontinental Energy has expanded its PEL 87 project offshore Namibia with two new prospects, boosting total high case prospective resources to 6.1 billion barrels net to the company. The ongoing farmout process signals growing industry interest in this promising exploration play.
- Two new prospects identified – Phoebe West and Northern Channel
- High case prospective resources for PEL 87 now 6.1 billion barrels net to Pancontinental
- Phoebe West estimated at up to 779 million barrels recoverable
- Northern Channel estimated at up to 1.34 billion barrels recoverable
- Farmout process progressing with multiple groups accessing data room
Expanding the Frontier in Namibia’s Orange Basin
Pancontinental Energy NL (ASX – PCL) has delivered a significant technical update on its PEL 87 offshore project in Namibia’s Orange Basin, revealing two new hydrocarbon prospects that considerably enhance the project’s resource potential. The company’s latest analysis, leveraging advanced seismic inversion and quantitative interpretation techniques, has identified the Phoebe West and Northern Channel prospects, adding to the previously reported Saturn Complex.
These new prospects are not just incremental additions; they represent substantial recoverable oil volumes. Phoebe West is estimated to hold a best case recoverable resource of 400 million barrels, with a high case of 779 million barrels. Meanwhile, Northern Channel boasts even larger numbers, with a best case of 602 million barrels and a high case reaching 1.34 billion barrels, all net to Pancontinental.
Technical Insights and Geological Context
The Northern Channel prospect lies at the northern edge of the PEL 87 3D seismic survey area and features three stacked turbidite channelized reservoirs. These reservoirs exhibit strong amplitude versus offset (AVO) anomalies indicative of hydrocarbon presence, supported by sedimentological analogues from the West African Atlantic margin. The structural setting benefits from proximity to the mature Kudu source kitchen, a prolific hydrocarbon source in the region.
Phoebe West, situated directly above the Kudu source rock, targets a lower Albian basin floor turbidite sequence. It is characterised by a large connected sand body with conforming AVO anomalies, suggesting a promising reservoir quality. The geological setting includes volcanic highs and mass transport deposits, adding complexity but also potential for significant hydrocarbon accumulation.
Resource Estimates and Exploration Outlook
Pancontinental’s updated resource estimates bring the total high case prospective resources for PEL 87 to an impressive 6.1 billion barrels net to the company. These figures are unrisked and based on deterministic methods, reflecting the early stage of exploration. The company notes that recovery factors could improve as exploration advances, potentially increasing recoverable volumes.
The farmout process for PEL 87 remains active, with a majority of interested parties having accessed the virtual data room. Pancontinental continues to engage with these groups, providing ongoing technical updates as new data emerges. This process is critical for securing partners and capital to advance drilling and appraisal activities.
Balancing Optimism with Caution
While the scale of prospective resources is encouraging, Pancontinental emphasises the inherent risks associated with exploration, including the chance of discovery and development. No drilling has yet confirmed commercial viability, and further appraisal is necessary to validate these prospects. Nonetheless, the technical groundwork and resource scale position PEL 87 as a compelling asset in the emerging offshore Namibia oil landscape.
Bottom Line?
With 6.1 billion barrels now on the table, Pancontinental’s next moves in farmout and drilling will be pivotal for unlocking value.
Questions in the middle?
- When will Pancontinental commence drilling to test these new prospects?
- Which partners are showing the strongest interest in the PEL 87 farmout process?
- How might evolving recovery factor estimates impact the project’s economic outlook?