Pancontinental Energy NL ("Pancontinental" or "Company) is pleased to provide its
Quarterly Activities Report for the period ended 31 December 2024.
Highlights
• Recent technical studies support case for presence of turbidite reservoir sands
within AVO-supported intra-Saturn leads
• Resurgence of exploration and appraisal drilling operations in Namibian Orange
Basin
• Continued drilling success at on-trend Mopane discovery
• Delivery of Seismic License to Woodside established Long Stop Date as 18 May
2025
• Quarter-end cash balance of $3.6 mm
PEL 87 Project
During the reporting period additional technical studies have been completed on the 6,593 km2 PEL
87 3D seismic dataset, focused on Albian-age leads present within the Saturn complex that exhibit
Type II AVO anomalies (believed to be consistent with major discoveries on-trend to the south). An
independent expert Sequence Stratigrapher has been engaged to analyse the 3D volume utilising the
PaleoScanTM software package resulting in the generation of a chrono-stratigraphically consistent
geological model, an example section from which is shown in Figure 1. The AI-generated geomodel
provides an improved understanding of reservoir system provenance, distribution and geometries and
increased confidence in interpreting discrete elements of the targeted turbidite reservoir systems.
The example shown in Figure 2 displays the interpreted depositional systems across the full 3D survey
area in the Late Aptian period, at the time of initial deposition of the Saturn Complex. The interpretation
itself is based upon multiple different seismic attributes extracted at the Late Aptian horizon and reveals
fluvial channels (shelfal) leading to multiple deepwater channels that run approximately east to west
across PEL 87.
Interpretation across multiple such horizons within the Saturn Complex reveals repeated, cyclic
depositional geometries originating from the shelf into a localised structural low, east of the Outer High.
The wave-like appearance of these formations suggests that these sediments have ponded in the
structural low and have then been reworked by ocean bottom currents, likely with associated
winnowing. This winnowing process is well documented and results in removal of finer-grained clastic
material, leaving coarser sands behind with the net result being a significant improvement in reservoir
quality.
With the benefit of this new model Pancontinental regards the geological risk associated with reservoir
presence as having been mitigated to a considerable degree. Of the various play types and leads
present across PEL 87 the Company is now focused on two primary exploration leads within the Saturn
Complex that cover a combined area of up to 1,385 km2. Both leads are interpreted to have good
reservoir potential within reworked ponded turbidite sandstones that exhibit Class II AVO anomalies
and are optimally located to receive hydrocarbon charge from the underlying Kudu Shale source
kitchen, which is interpreted to be within the oil maturity window within the vicinity of the Saturn
Complex.
Figure 3 displays the ultra-far offset seismic amplitudes on two separate intra-Saturn horizons, showing
the areas that exhibit a favourable AVO response for both the Oryx and Hyrax leads respectively. Both
leads incorporate a predominantly stratigraphic trapping style, with Oryx exhibiting AVO anomalies at
three levels and structural closure at one of the prospective levels. Hyrax exhibits an AVO anomaly at
a single level and benefits from a degree of structural control with gentle dip to the north-west.
Having improved its understanding of reservoir potential for the Oryx and Hyrax leads Pancontinental
will now progress to determining its estimates of prospective resources and geological chance of
success.
Woodside Agreement
As reported by the Company on 21 November 2024, during the reporting period Pancontinental
delivered to Woodside Energy (Woodside) a Seismic License for the PEL 87 3D seismic data,
approved by the relevant Namibian authority. As such the Long Stop Date by which Woodside must
exercise its option to farmin to PEL 87 is established as 18 May 2025.
Orange Basin Update
After a brief hiatus in operational activity within the Namibian Orange Basin the reporting period saw a
resurgence of exploration and drilling activity with at least eight wells completed, drilling or planned by
the various operators. Galp Energia are currently drilling the Mopane-3X exploration well having
successfully completed the Mopane-1A and Mopane-2X wells. Mopane-2X is reported to have
encountered a significant column of light oil in high quality sandstone reservoirs. The AVO-3 exploration
target and the AVO-1 appraisal target plus a deeper target encountered hydrocarbons, and the AVO1 appraisal target shares the same pressure regime as the Mopane-1X discovery well located
approximately 8 km to the east (confirming its lateral extension). Mopane-3X is reported to be targeting
two stacked prospects, AVO-10 and AVO-13, with results expected to be available during February
2025. Galp Energia has not modified its predrill resource estimate of 10 Billion barrels of oil-in-place,
suggesting that recent drilling results continue to support this figure.
Meanwhile TotalEnergies is drilling its Tamboti-1X exploration well in PEL 56, which is designed to test
an eastern extension of a large fan complex that hosts the Mangetti-1X discovery. TotalEnergies are
also reportedly progressing with commercialisation of its existing discoveries, targeting late 2025 to
select a development concept for the Venus field.
Rhino Resources spudded the Sagittarius-1X exploration well in its PEL 85 permit in mid-December
2024, having farmed out to Azule Energy (as BP/ENI joint venture) in May 2024. While the Sagittarius
prospect appears to be a possible extension of the Mopane Complex, Rhino Resources have stated
that drilling is targeting multiple stacked potential pay zones within a distinct geological setting,
suggesting that there may be separation from Mopane. Sagittarius-1X is expected to be followed up
by the Volans-1X well, located to the south.
Chevron recently completed drilling of its maiden exploration well in PEL 90, with its Kapana-1X well
failing to encounter commercial quantities of hydrocarbons. Little information is publicly available at
this time.
Finally, as announced by Shell in January 2025 the company has written off US$400 million of
exploration and appraisal investment in its PEL 39 permit. While Shell's nine wells have clearly
confirmed significant in-place hydrocarbon volumes, it is believed the presence of large volumes of associated gas present a technical and economic challenge to development. Reservoir quality may
also be a contributing factor, however Shell have stated that they will continue to pursue exploration
opportunities within PEL 39 and within Namibia in general.
Corporate
Financial
The Company had cash and cash equivalents at 31 December 2024 of $3,610,000
Annual General Meeting
The Company's Annual General Meeting of Shareholders was held at 1pm on Friday 29 November
2024, with all resolutions put to the meeting being approved.
Notes Pertaining to Quarterly Cashflow Report (Appendix 5B)
Item 6.1: The aggregate amount of payments to related parties and their associates of $140,000 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:
* Pancontinental has granted to Woodside an exclusive option to acquire a 56% participating interest
from Pancontinental's interest in PEL 87 (refer to ASX announcement 2 March 2023); Pancontinental
has an option to acquire an additional 1% participating interest from Custos Investments.
**earning
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%
1: Woodside has an exclusive option over a 56% Participating Interest to be derived from Pancontinental’s 75%.
2: Pancontinental has an option over a 1% Participating Interest to be derived from Custos’ Participating Interest.