Pancontinental Energy NL ("Pancontinental" or "Company) is pleased to provide its
Quarterly Activities Report for the period ended 30 June 2025.
Highlights
- Basin modelling study confirms that Saturn Complex targets are ideally situated to
receive direct oil charge from underlying Kudu Shale source kitchen
- Quantitative Interpretation study indicates good potential for high net-to-gross
reservoir system, with fluid substitution modelling indicating the presence of a low
gas-oil-ratio (GOR) oil
- Saturn Complex High Case prospective resources estimate upgraded to 4 Billion
barrels of oil (net to Pancontinental, arithmetic sum of High Cases)+
- Oryx prospective resources increased to Best Case (2U) 815 MMbbls and High
Case (3U) 1.9 Billion bbls (net to PCL) with Geological Chance of Success
increased to 26.2%
- Commenced Environmental Impact Assessment process for exploration drilling
approvals
- Well-funded with quarter-end cash balance of $2.5 mm. In addition post 30 June
2025 option exercise funds of c. $200,000 have been received to date
PEL 87 Project Status
The PEL 87 basin modelling study has now been completed with input from a specialist consultant. The
purpose of the study was to analyse the basinal structural evolution within the vicinity of PEL 87 to
reconstruct the geological/thermal history so that areas of hydrocarbon generation, migration, and
accumulation can be predicted.
The ubiquitous Barremian-Aptian aged Kudu Shale formation is widely recognised as the primary source
of hydrocarbons for the major light oil discoveries to the south of PEL 87. The Kudu formation is proven
within PEL 87 at the Moosehead-1X exploration well, which encountered approximately 200 metres of
dominantly Type II marine oil shale with Total Organic Content (TOC) of up to 5.5%. The formation has
a distinctive seismic character and is readily mapped across the entire PEL 87 area, with thickness
generally between 200 to 300 metres.
An oil kitchen is interpreted to exist directly beneath the Saturn Complex and extends eastwards and
southwards to the Mopane discoveries (refer Figure 1). At greater depths of burial two discrete gas
kitchens are identified, the larger of which sits directly beneath the Kudu Gas Field. The proximity of the
Saturn Complex targets to the underlying oil kitchen places the Saturn exploration targets in an excellent
position to receive hydrocarbon charge, with only limited vertical and lateral migration required. The
mature area directly beneath the Saturn Complex is estimated to have generated and expelled
approximately 20 Billion barrels of oil, with a significant additional charge contribution expected from the
"fetch" area that is situated down-dip to the northeast.
Pancontinental engaged an expert QI specialist to examine the Amplitude vs Offset (AVO) anomalies
observed within the PEL 87 3D seismic data, and to investigate the rock physics from available regional
well data to generate seismic AVO inversion data. That study is now largely complete and provides
support for a high net-to-gross reservoir system coincident with AVO anomalies observed within the
Saturn Complex. Analysis of the 3D seismic gathers indicates consistent Class II AVO responses in
both upper and lower sequences within the Saturn Complex target intervals, and synthetic modelling of
those intervals indicates possible hydrocarbon effects evident in the seismic data, possibly due to the
presence of a low gas-oil-ratio (GOR) oil. This is supported by the Basin Modelling study, which
determined an estimated GOR of 200 scf/Bbl for oil generated within the Saturn Complex kitchen.
Importantly this is significantly lower than at (for example) TotalEnergies Venus discovery, in which the
high level of associated gas presents certain challenges to development.
Based upon the results of the QI study, and as announced to ASX on 29 July 2025, Pancontinental has
revised its original estimates for Prospective Resources and geological risking of the Saturn Complex
target inventory. Tables 1 and 2 provide Pancontinental's revised estimates of Original Oil in Place
(OOIP) and Prospective Resources (recoverable) on a 100% gross and 75% net basis, respectively.
Also provided for each lead is the revised estimate for Geological Chance of Success (GCoS).
Please refer to the Company's announcement to ASX of 18 March 2025 for full prospect and lead
summaries, which remain largely unchanged with the exception that the Oryx prospect now incorporates
the prospective features previously identified as the Calypso and Addax Channel leads, due to the fact
that it is determined that all three targets may be effectively tested by a single exploration well. As a
result the High Case (3U) prospective resource estimate (gross, 100%) for Oryx now stands at over 2.5
Billion barrels of oil, recoverable, with an estimated GCoS for the main Oryx prospect now standing at
26.2% (previous estimate 22.5%).
Finally, during the reporting period Pancontinental engaged Namibian consultancy Risk Based Solutions
CC to provide support for the Company to prepare its Environmental Impact Assessment for future
exploration/appraisal drilling within PEL 87. That process is now underway.
Farmout Process
The PEL 87 farmout process commenced in late March 2025, with data room sessions running since
mid-May 2025 until the present time. Pancontinental continues to engage with all interested parties, in
particular via technical updates relating to the QI study that has progressed significantly since the data
room was first established (upgrading PEL 87 prospectivity).
Orange Basin Update
During the reporting period Azule Energy (a BP/ENI joint venture) confirmed a light oil discovery at its
Capricornus-1X well, located in Rhino Resources' PEL 85. The Capricornus 1-X well encountered 38
metres of net pay within a Lower Cretaceous target, with no oil water contact observed. The well was
successfully production tested, achieving a surface-constrained flow rate of over 11,000 bpd of 37° API
oil, with limited associated gas, less than 2% CO2 and no hydrogen sulphide. The Capricornus-1X result
supports an emerging trend wherein both good quality sandstone reservoirs and hydrocarbon charge
are present within an intra-slope setting along a N/S trending fairway inboard of the outer structural high.
Importantly the Saturn Complex was deposited within this fairway. Azule Energy is now preparing to drill
a further exploration well, at Volans-1X.
During the reporting period Galp Energia released details of its maiden contingent resource for the
Mopane Complex, confirming 3C contingent resources of 875 MMboe. Importantly this figure is based
only upon the results of the Mopane-1X and Mopane-2X wells (plus partially the Mopane-1A appraisal
well) and as such it can be expected that further revisions for the Mopane Complex will see a significant
increase in contingent resources as data from subsequent wells and future drilling are incorporated.
Galp Energia continues its divestment process for a 40% interest in PEL 83, having set a bid deadline
of 30 June 2025, and has reportedly received a number of non-binding proposals. Galp Energia has
stated that it intends to finalise a partnership before end CY 2025.
Elsewhere in the basin TotalEnergies continues to pursue a Final Investment Decision for development
of its Venus/Mangetti discoveries and Chevron is believed to be planning to drill up to two exploration
wells within its PEL 90 permit. Also Kudu gas field operator BW Energy is currently preparing to drill an
appraisal well and an exploration well to support development of the approximate 1.5 Tcf Kudu gas field,
utilising the Deepsea Mira semi-submersible rig once it has completed operations at Azule/Rhino's
Volans-1X well.
Corporate
Financial
The Company had cash and cash equivalents at 30 June 2025 of $2.5 million. Post the reporting period
16,600,000 listed options were exercised, resulting in proceeds to the Company of $199,200.
Notes Pertaining to Quarterly Cashflow Report (Appendix 5B)
Item 6.1: The aggregate amount of payments to related parties and their associates of $145,000 relates
to payments to directors.
ASX Listing Rule 5.4.3: Tenement Details
In accordance with ASX Listing Rule 5.4.3 the following table details Pancontinental’s interests in its oil
and gas permits:
There were no hydrocarbon production and development activities during the quarter.
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%