PEL 87 Permit Extension Pending as Pancontinental Eyes Major Oil Prospects

Expanding the PEL 87 Prospect Inventory

Pancontinental Energy NL has delivered a significant update on its flagship PEL 87 permit in Namibia’s Orange Basin, revealing the identification of two new prospects; Phoebe West and Northern Channel. These additions have lifted the total high case prospective resource estimate to an impressive 6.1 billion barrels of oil net to Pancontinental, underscoring the permit’s potential as a major future hydrocarbon province.

The company’s recent technical studies, leveraging 3D seismic data and advanced basin modelling, have de-risked the prospect inventory to eight leads, with three anchor prospects; Oryx, Hyrax, and Northern Channel; offering geological chances of success between 21% and 26%. Notably, Oryx and Hyrax lie within the Saturn Complex, where a successful well could de-risk multiple prospects collectively holding over 5 billion barrels of recoverable oil.

Farmout Progress and Regulatory Status

Pancontinental is actively progressing a farmout process, having granted access to a virtual dataroom to several interested parties who continue their technical evaluations. The company remains engaged with these groups, providing supplemental information as it becomes available, signaling a strategic approach to securing partners for upcoming exploration drilling.

Meanwhile, Pancontinental awaits formal approval from the Namibian Ministry of Industry, Mines and Energy for a 12-month extension to the PEL 87 First Renewal Exploration Period. The application was submitted in October 2025, but the permit technically expired in January 2026. While the Ministry has not yet responded, Pancontinental is liaising closely with regulators to clarify the permit status, which is critical for maintaining exploration momentum.

Regional Activity and Financial Position

In the broader Orange Basin, activity is intensifying. TotalEnergies recently agreed to acquire a 40% operated interest in the nearby PEL 83 license from Galp Energia, with plans for a multi-well exploration and appraisal campaign targeting the Mopane Complex. TotalEnergies is also advancing development plans for the Venus discovery in PEL 56, aiming for a final investment decision by late 2026 or early 2027. Additionally, Chevron and Shell are reportedly preparing to resume exploration drilling in adjacent permits, highlighting the basin’s growing strategic importance.

Financially, Pancontinental remains well-positioned with a quarter-end cash balance of $3.2 million, providing a solid foundation to support ongoing technical work, environmental assessments, and farmout negotiations. The company’s environmental impact assessment preparation is on track, aiming to facilitate exploration drilling before the end of 2026.

Looking Ahead

While Pancontinental’s PEL 87 permit shows promising resource potential and technical progress, the pending regulatory decision on the permit extension introduces an element of uncertainty. The company’s ability to secure farmout partners and advance drilling plans will be pivotal in translating these prospective resources into tangible value. Investors will be watching closely as Pancontinental navigates these critical next steps in a highly competitive and evolving exploration landscape.