28 Nov 2024
Pancontinental Energy Sets Farm-In Timeline as Orange Basin Gains Global Oil & Gas Interest
Pancontinental Energy NL announced that Woodside Energy has until May 18, 2025, to decide whether to proceed with its farm-in option for a 56% stake in the offshore PEL 87 project in Namibia.
The PEL 87 license, situated in Namibia’s Orange Basin, has drawn strong interest from global oil and gas companies following significant recent discoveries in the area.
“The Long Stop Date, which is 180 days from the delivery of the approved Seismic Licence, is now officially set for May 18, 2025,” Pancontinental said in a statement. “This represents a significant step forward in our collaboration with Woodside Energy, ensuring clarity on timelines as we advance this promising offshore project.”
The Long Stop Date follows the approval and delivery of a Seismic Licence by Namibian authorities to Woodside. The license grants access to 3D seismic data acquired and processed in 2023.
“We are pleased to report that the Seismic Licence, which provides ongoing rights to the PEL 87 3D seismic data funded by Woodside, has been approved by the relevant Namibian authority,” the company noted. “This license ensures compliance with all regulatory requirements and allows Woodside to fully evaluate the project’s potential.”
Under the Option Deed signed in March 2023, Woodside funded a $35 million 3D seismic survey over PEL 87. Should Woodside exercise its option, it will fully fund the drilling of the first exploration well.
“Having fully funded the $35 million-plus 3D seismic survey, Woodside now holds an exclusive option to acquire 56% of our 75% interest in PEL 87,” Pancontinental stated. “If the option is exercised, Woodside will fully carry the joint venture through the drilling of the first exploration well, enabling us to move this project to the next critical phase.”
Pancontinental Orange Pty Ltd, the operator of PEL 87, holds a 75% stake in the project. Custos Investments and Namibia’s state-owned NAMCOR hold 15% and 10%, respectively.
Pancontinental also has an option to acquire an additional 1% from Custos for $1 million, ensuring it maintains a 20% stake should Woodside proceed with the farm-in.
“To ensure we retain a 20% interest in the project, we have entered into an option agreement with Custos Investments,” Pancontinental said. “For a consideration of $1.5 million, this agreement allows us to acquire an additional 1% interest from Custos by paying a further $1 million. This aligns our interests with the long-term potential of the project.”
Pancontinental Energy NL is an Australian oil and gas exploration company focusing on its offshore assets in Namibia.