Pancontinental Energy NL ("Pancontinental" or "Company) is pleased to provide its
Quarterly Activities Report for the period ended 31 March 2025.
Highlights
- Basin Modelling study indicates that expelled oil volume from Saturn Complex fetch
area is in the region of 20 billion barrels oil
- Saturn Complex High Case prospective resources estimated at 3.8 Billion barrels of oil
(net to Pancontinental, arithmetic sum of High Cases)+
- Strong industry interest received in PEL 87 farmin opportunity from a combination of
supermajors, large independents and national oil companies
- Azule Energy's recent Capricornus-1X oil discovery reinforces prospectivity of intraslope trend within which the Saturn Complex is situated
- Commencing Environmental Impact Assessment process for exploration drilling
approvals
- Well-funded with quarter-end cash balance of $3.1 mm
PEL 87 Project Status
On 18 March 2025 the Company announced its estimates of prospective resources for PEL 87, which
confirm the giant potential of the Saturn Complex, comparing favourably to the very significant
discoveries on-trend to the south.
As also announced Pancontinental has initiated a farmout process to secure a joint venture partner to
fund exploration drilling within PEL 87 at the earliest opportunity. Pancontinental is engaged only with
those companies that have deepwater operational capability with a commensurate balance sheet, and
the Company is encouraged by the strong level of interest received from a combination of supermajors,
large independents and national oil companies. Representatives from Pancontinental attended the
Namibian International Energy Conference that was held in Windhoek from 23 to 25 April 2025, which
provided an excellent and timely forum to meet in person with the majority of parties that are participating
in the farmout process.
In addition to the farmout process Pancontinental is engaging the services of a specialist in-country
consultant to assist with an Environmental Impact Assessment, necessary as a precursor to seeking
approval from the Namibian Ministry of the Environment, Forestry and Tourism to conduct exploration
drilling operations within PEL 87.
PEL 87 Prospectivity
During the reporting period Pancontinental continued various technical studies, leading to the
Company's estimation of Prospective Resources for the Saturn Complex prospect/lead inventory as
announced on 18 March 2025. The Saturn Complex is interpreted to host two main prospects and six
additional leads.
The Oryx prospect is the older of the identified basin floor fans within the PEL 87 Saturn Complex and
exhibits a clear Type II AVO amplitude anomaly (refer Figure 2). It also exhibits the largest connected
sand body at up to 144 km2 of the prospect's total area of over 500 km2. The Albian-aged turbidite sands
are interpreted to have been reworked during and post deposition by blue water currents with associated
winnowing expected to wash out finer grained sediments, potentially creating an extensive and high quality reservoir system. The central area is draped over a structural high that contains other overlying
AVO anomalies attributed to the Calypso and Addax leads.
The Hyrax Prospect is located in the southern portion of the Saturn Complex and exhibits Type II AVO
amplitude anomalies over a combined 400 km2 area. The Hyrax Albian reservoir target is slightly
younger than at Oryx, and the turbiditic sands are dominated by elongate stacked geometries, believed
to result from redistribution of coarse clastics by winnowing from blue water currents.
Tables 1 and 2 provide Pancontinental's 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 estimate of Geological Chance of Success (GCoS). Importantly scope exists for multiple
prospect/leads to be targeted by a single well (e.g. at Oryx/Calypso/Addax Channel) and exploration
success at any of the defined prospects/leads is expected to result in a significantly uplifted GCoS and
refined estimates of Prospective Resources for subsequent exploration targets.
PEL 87 Ongoing Technical Studies
Two subsurface technical studies remain in progress, with basin modelling and seismic inversion
projects nearing completion. Pancontinental is encouraged that the basin modelling study indicates a
Kudu oil source kitchen immediately beneath and to the northeast of the Saturn Complex (refer Figure
3). Based on regional well data the Kudu Shale is interpreted to be up to 300 metres thick and within
the oil maturity window. The fetch area that feeds into the Saturn Complex is predicted to have generated
and expelled some 20 billion barrels of oil and charge access is regarded as excellent, with oil migration
from the kitchen into the Saturn Complex required only over a relatively short distance and minimal
vertical migration required to charge the overlaying Saturn Complex targets.
Another positive finding of the basin modelling study is that the Gas-Oil-Ratio (GOR) is expected to be
substantially lower than encountered at the TotalEnergies and Shell discoveries to the south. This is as
a result of the proximal Kudu kitchen having been buried to a depth that is above the main gas generative
window, although some gas is to be expected due to the dominantly Type II marine nature of the Kudu
Shale.
The seismic inversion quantitative interpretation study was commenced by Pancontinental towards the
end of the reporting period and will be completed in the coming weeks. The aim of the study is to provide
further increased confidence in prospectivity by generating lithology and fluid prediction models.
Additional potential is identified within deeper sequences beneath the Oryx and Hyrax prospects which
may be converted to exploration leads subject to the results of the study.
Orange Basin Update
During the reporting period Galp Energia completed drilling of its Mopane-3X exploration well, situated
approximately 18km away from the Mopane-1X well. The well was confirmed as a further Mopane
Complex discovery with Galp Energia reporting that light oil and gas-condensate are present in
significant columns across the AVO-10/13 targets and a deeper sand. Galp Energia reported that
wireline log analysis indicates good porosities, high pressures and high permeabilities, with initial fluid
samples showing a low oil viscosity and minimal concentrations of CO2 /H2S. It is understood that drilling
operations have now been suspended for some time while data from all wells drilled thus far is integrated
into Galp Energia's subsurface model to support the planning of further activities.
Subsequent to 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). 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.
During and subsequent to the reporting period Azule Energy (a BP/ENI joint venture) confirmed
discoveries at its Sagittarius-1X and Capricornus-1X wells, 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.
Meanwhile TotalEnergies has recently completed drilling of its Marula-1X exploration well in PEL 56,
confirming a dry hole, with no hydrocarbons encountered in the Albian-aged target.
These latest drilling results support 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.
The Company had cash and cash equivalents at 31 March 2025 of $3,051,000. During the reporting
period 5,000,000 listed options were exercised, resulting in proceeds to the Company of $60,000.
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.
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%