Pancontinental wins PEL 87 reprieve

Pancontinental Energy has until 22 January 2027 to advance exploration on its offshore Petroleum Exploration Licence (PEL) 87 after the Namibian government granted the company a 12-month extension, giving it more time to improve seismic data, secure a farm-in partner and prepare for its first exploration well.The extension, approved by the Ministry of Industries, Mines and Energy (MIME), prolongs the licence's First Renewal Exploration Period by one year.Pancontinental said it has received confirmation from the ministry that the draft Deed of Amendment to the PEL 87 Petroleum Agreement is acceptable and that the parties can proceed to sign the agreement.A key condition of the extension is the reprocessing of the licence's existing three-dimensional seismic dataset.Rather than acquiring new seismic data, the company has started a feasibility study to determine the most effective way to improve the quality of existing subsurface images before selecting a drilling location.Pancontinental said specialist seismic processing companies are being invited to evaluate a range of post-stack and pre-stack processing techniques. The assessment includes test-processing sections of the dataset to compare improvements in image quality against cost and processing time.The company said the enhanced seismic interpretation is expected to reduce geological uncertainty and refine drilling targets before committing to the next phase of exploration.Farm-in discussions continuePancontinental said it remains in discussions with several prospective farm-in partners interested in participating in the project.Although it declined to identify the companies because of confidentiality agreements, it said several parties continue to evaluate the opportunity.Once a farm-in agreement has been concluded, the company said it intends to engage the ministry jointly to determine the timing and logistical requirements for completing the licence's committed work programme, centred on drilling an exploration well.Orange Basin activity gathers paceThe extension comes as exploration activity accelerates across Namibia's Orange Basin, where neighbouring operators have reported significant progress.Shell recently announced a light oil discovery at the Merlin-1X well in PEL 39, while Rhino Resources and Azule Energy confirmed reservoir continuity at the Capricornus discovery after intersecting 46 metres of gross hydrocarbon pay at the Capricornus-1A appraisal well.Meanwhile, the PEL 85 joint venture is planning an extensive 3D seismic survey covering 8,633 square kilometres between late 2026 and 2030.Elsewhere, Galp Energia is preparing to drill three exploration and appraisal wells at its Mopane discovery complex during the second half of 2026. TotalEnergies is advancing the Venus development towards a final investment decision after submitting a field development plan to the Namibian government, while Chevron is expected to spud the Nabba-1X exploration well in PEL 90 during the fourth quarter.Pancontinental said continued exploration success on neighbouring licences strengthens the prospectivity of PEL 87 and supports ongoing discussions with potential partners.The company ended the June quarter with A$2.4 million in cash and cash equivalents, which it said provides sufficient funding to continue seismic studies and farm-out negotiations during what is expected to be a pivotal year for the licence.

Pancontinental wins PEL 87 reprieve

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Republikein 2026-08-04

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Pancontinental wins PEL 87 reprieve

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Republikein 2026-08-04

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