Pancontinental gets extension
Pancontinental Energy has until 22 January 2027 to advance exploration on its offshore Petroleum Exploration Licence (PEL) 87 after Namibia granted the company a 12-month extension to its exploration programme.
The extension, approved by the Ministry of Industries, Mines and Energy (MIME), extends the licence's First Renewal Exploration Period by one year and gives the Australian-listed explorer additional time to refine its geological understanding of the block, secure a farm-in partner and prepare for its first exploration well.
Pancontinental said it had received confirmation from the ministry that the draft Deed of Amendment to the PEL 87 Petroleum Agreement was acceptable and that the parties could proceed with signing 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 begun a feasibility study to determine the most effective way of improving the quality of its existing subsurface images before selecting a drilling location.
Pancontinental said specialist seismic processing companies had been invited to assess a range of post-stack and pre-stack processing techniques, including test-processing sections of the dataset to compare improvements in image quality, processing time and cost.
The company said improved seismic interpretation should reduce geological uncertainty and help refine drilling targets before committing to the next phase of exploration.
At the same time, Pancontinental said it continues 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 a number of parties remain engaged in evaluating the opportunity.
Once a farm-in agreement has been concluded, Pancontinental said it intends to engage jointly with the ministry on the timing and logistical requirements for completing the licence's work programme, including the drilling of an exploration well.
Regional exploration gathers pace
The extension comes as exploration activity accelerates across Namibia's Orange Basin, where neighbouring operators have reported a series of exploration and appraisal milestones.
Shell announced a light oil discovery at its 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. The PEL 85 joint venture is now planning a three-dimensional seismic programme 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, while TotalEnergies is advancing the Venus development towards a final investment decision after submitting a field development plan to the Namibian government. Chevron is also expected to spud the Nabba-1X exploration well in PEL 90 during the fourth quarter.
Pancontinental said continued exploration success on neighbouring licences supported the prospectivity of PEL 87 and reinforced discussions with potential farm-in partners.
The company ended the June quarter with A$2.4 million in cash and cash equivalents, which it said would fund ongoing seismic studies and farm-out negotiations over the coming year.
