Pancontinental Energy NL ("Pancontinental" or "Company) is pleased to provide its
Quarterly Activities Report for the period ended 30 June 2024.
Highlights
• Interpretation and analysis of 3D pre-stack depth migration (PSDM) seismic
dataset continues with a focus on Cretaceous play concepts
• Independent specialist consultancy engaged to undertake an AVO study
• Global interest in the Orange Basin continues with multiple exploration wells
planned to be drilled commencing Q4 CY24
• Quarter-end cash balance of $4.3m cash, supported by options exercise
PEL 87 Project Update
Pancontinental's interpretation and analysis of the 6,593 km2 3D pre-stack depth migration (PSDM)
seismic dataset continues, building on the preliminary interpretation work that confirmed the presence
of a variety of Cretaceous and Tertiary hydrocarbon play concepts within PEL 87. The Company's
primary focus is on the Cretaceous play concepts which range in age from Barremian channelised fans
to Cenomanian channels/erosional remnants. Within these plays, trapping styles encompass structural,
stratigraphic and combination structural-stratigraphic.
Seismic "bright" amplitudes and Amplitude vs Offset (AVO) anomalies are evident within a number of
exploration leads across the play types, including discrete leads that have been identified within the
Saturn complex (intra-Saturn). The current inhouse technical work is focused on maturing the
interpretation of key sequences within the Cretaceous petroleum systems that host on-trend discoveries.
Pancontinental's current priorities in this regard are the intra-Saturn AVO anomalies and the
Barremian/Aptian channelised fan play. The Company has engaged an independent specialist
consultancy to undertake an AVO study, which commenced in early July and will incorporate AVOspecific seismic data conditioning and rock physics modelling to generate predicted seismic responses
for comparison to the real-life seismic signature.
Figure 1 displays an example of one of the intra-Saturn leads that exhibit AVO effects, with anomalous
amplitudes evident on the ultra-far seismic offset data. In parallel with the AVO study, further
interpretation work is required to determine the precise depositional nature of this, and other, features
within the Saturn complex.
The Barremian/Aptian channelised fan play is regarded by the Company's technical team as a possible
analogue to the on-trend Venus oil discovery. Figure 2 displays a 3D perspective of the Top Aptian
horizon (in depth) with ultra-far offset amplitudes overlain. The "bright" amplitudes clearly indicate the
presence of deepwater feeder channels running due westwards into what are interpreted by
Pancontinental as deepwater turbidite fan systems, one of which appears to be detached from the feeder
system. These are located to the north of the structural high around the Moosehead-1X well, and east
of the outboard regional high. These features are thought likely to host high quality reservoir sands, of
comparable ago to those that host TotalEnergies' giant Venus discovery (reported to hold an estimated
5 billion barrels oil-in-place).
In parallel with the AVO study, now that key regional geological horizons have been mapped and are
available the Company will shortly commence a basin modelling study, the aim of which is to fully define
the hydrocarbon source kitchen and hydrocarbon charge mechanism/timing. While these studies and
other technical work must be completed before individual prospects can be fully characterised, the
Company remains encouraged by the high quality of the data and is increasingly confident in the
hydrocarbon potential of PEL 87.
As reported by the Company on 30 April 2024, the long stop date by which Woodside Energy must
exercise its option to farmin to PEL 87 (by committing to drill an exploration well) will be 180 days from
the date upon which the PEL 87 Joint Venture provides to Woodside a license (Seismic License) to hold
ongoing rights to the PEL 87 3D seismic data. Pancontinental is working to finalise the Seismic License
with the Namibian authorities so that the long stop date can be established as soon as possible. The
Company will provide an announcement once this is in place. In the meantime, Woodside is undertaking
its own technical analysis of the seismic data in parallel with Pancontinental and the Company notes
that Woodside does have the right to exercise its option at any time prior to the long stop date
(establishment of the Seismic License not being a pre-requisite).
Orange Basin Update
The Namibian Orange Basin is seeing a brief hiatus in drilling activity, after a prolonged period of
significant activity since early 2022. The most significant recent drilling results, as pertains to PEL 87,
were Galp Energia's AVO-supported Mopane-1X and Mopane-2X oil discoveries, and TotalEnergies'
Mangetti-1X discovery. Mopane-1X is reported to have encountered two significant columns of oil in
high quality sandstone reservoirs and flowed at a maximum (constrained) flow rate on test of 14,000
bopd. Galp Energia report that the results achieved thus far position Mopane as a very significant
commercial discovery, with the Mopane complex having potential resources of over 10 billion barrels of
oil equivalent in-place. Galp Energia is preparing to commence further exploration and appraisal drilling
in Q4 2024 and seeks to divest half of its interest in the project (with numerous large international oil
and gas companies reported to be considering the opportunity).
Pancontinental regards the Mopane, Venus and Mangetti discoveries as being extremely positive
indicators for PEL 87 prospectivity, as they are believed to reside in a similar geological setting to PEL
87.
During the reporting period Rhino Resources executed a farmout agreement with Azule Energy, a joint
venture between Eni and BP. Under the agreement Azule will drill two exploration wells within PEL 85
to earn a 42.5% interest, with drilling reported to commence in Q4 CY 2024. Meanwhile Chevron is also
preparing to commence exploration drilling in PEL 90, with one well initially slated.
Corporate
Financial
The Company had cash and cash equivalents at 30 June 2024 of $4,301,000.
Conversion of Options
The Company received $600,000 upon conversion of 50,000,000 listed options (PCLO) into PCL shares
at $0.012 per share. Also 20,000,000 unlisted options (PCLAD) were converted into 13,913,043 PCL
shares at a notional price of $0.007 per share via the cashless exercise facility of the employee Incentive
Awards Plan by Vesna Petrovic for personal reasons.
Notes Pertaining to Quarterly Cashflow Report (Appendix 5B)
Item 6.1: The aggregate amount of payments to related parties and their associates of $146,000 relates
to payments to Executive Directors. Exploration expenditure on the Company’s asset base during the
reporting period was $244,361 for consulting, legal, travel and Namibian in-country expenses including
Petrofund annual training contribution of US$56,000.
There were no hydrocarbon production and development activities during the quarter.
About PEL 87
Petroleum Exploration Licence 87 (PEL 87) is located in the offshore Orange Basin, southern Namibia
(refer Figure 1). The permit covers an area of 10,970 km2 and is situated on-trend to a number of very
significant hydrocarbon discoveries that have been made since early 2022 by TotalEnergies, Shell and
Galp Energia.
PEL 87 was awarded to a joint venture led by Pancontinental in early 2018 for up to 3 terms over 8 years
(plus possible extensions) and may be converted to a Production Licence under pre-agreed terms. The
permit is currently in the first renewal exploration period.
The participants in the PEL 87 Joint Venture are as follows:
Pancontinental Orange Pty Ltd (Operator) 75%
Custos Investments (Pty) Ltd 15%
National Petroleum Corporation of Namibia (NAMCOR) 10%
