Pancontinental Energy (ASX: PCL) faces a shift in its Namibian offshore project, PEL 87, as Woodside Energy opts not to proceed with its farmin option. Despite Woodside’s departure ahead of the May 18, 2025 deadline, Pancontinental remains optimistic about the project’s potential and is actively seeking an alternative partner to fund exploration drilling. The PEL 87 Joint Venture now comprises Pancontinental Orange Pty Ltd (75%), Custos Investments (15%), and NAMCOR (10%).
Pancontinental’s confidence stems from the prospective resources identified within the Saturn Complex, adjacent to Galp Energia’s Mopane discovery. Galp’s recent successful drilling outcome at Mopane-3X reinforces the initial estimate of 10 billion barrels of oil-in-place. The company’s Chief Executive Officer, Iain Smith, highlighted the significance of the Saturn Complex’s proximity to the Kudu oil kitchen and AVO signatures consistent with major discoveries like the Mopane Complex and Venus/Mangetti.
With a solid cash balance of $3.6 million as of December 31, 2024, Pancontinental is well-positioned to advance the farmout process. The company retains full access to the 3D seismic data, and the PEL 87 permit remains valid until January 22, 2026, requiring either one exploration well or further seismic data acquisition. PEL 87, covering 10,970 km2 in the Orange Basin, is strategically located near significant hydrocarbon discoveries by Galp Energia, TotalEnergies, and Shell, enhancing its attractiveness to potential investors.
