Pancontinental Energy is now focused on two primary exploration leads within the Saturn Complex that cover a combined area of up to 1,385 km2 across PEL 87 in the Orange Basin.
The company says both leads are interpreted to have good reservoir potential within reworked ponded turbidite sandstones that exhibit Class II Amplitude vs Offset (AVO) anomalies and are optimally located to receive hydrocarbon charge from the underlying Kudu Shale source kitchen.
The Kudu Shale source kitchen is interpreted to be within the oil maturity window near the Saturn Complex.
Pancontinental says 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.
The company says the Hyrax exhibits an AVO anomaly at a single level and benefits from a degree of structural control with a gentle dip to the northwest.
According to a December 2024 quarterly activity report, Pancontinental will now progress in determining its estimates of prospective resources and geological chance of success, improving its understanding of the Oryx and Hyrax reservoir potential.
Key aspects of the current interpretation effort are basin modelling studies and seismic Amplitude vs Offset (AVO) analysis of several AVO anomalies identified within the 3D dataset.
AVO studies can, in some cases, be an important derisking tool for hydrocarbon exploration drilling, and it is believed that at least the Venus and Mopane discoveries exhibit AVO anomalies due to hydrocarbon-saturated porous reservoir sands.
Additional technical studies
Pancontinental says additional technical studies were 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.
The company also engaged an independent expert Sequence Stratigrapher to analyse the 3D volume, utilising the PaleoScanTM software package to generate a chrono-stratigraphically consistent geological model.
The AI-generated model provides an improved understanding of reservoir system provenance, distribution and geometries and increased confidence in interpreting discrete elements of the targeted turbidite reservoir systems.
An interpretation of depositional systems across the entire 3D survey area in the Late Aptian period at the time of the initial deposition of the Saturn Complex was made based on multiple seismic attributes extracted at the Late Aptian horizon.
The 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 been reworked by ocean bottom currents, likely with associated winnowing.
This winnowing process is well documented and results in the 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.
Partners
Woodside Energy is expected to exercise its option to farm to PEL 87 by 18 May 2025, the long stop date, after Pancontinental delivered a seismic license for the PEL 87 3D seismic date, approved by the relevant Namibian authority.
PEL 87 was awarded to a joint venture by Pancontinental in early 2018 for up to 3 terms over 8 years (plus possible extensions).
It may be converted to a production licence under pre-agreed terms.
The permit is currently in the first renewal exploration period. PEL 87 sits on trend to these discoveries and is regarded by Pancontinental as highly prospective for hydrocarbons.
Only one exploration well has been drilled thus far in PEL 87, Moosehead-1X, in the south of the permit. Moosehead-1X was drilled by Brazilian company HRT in 2013, targeting a vast carbonate feature upon a regional structural high.
While the well did not encounter commercial quantities of hydrocarbons, it confirmed the presence of the Kudu Shale oil source formation and a thick and effective sealing formation immediately above Saturn-aged siltstones.
The Kudu Shale is considered early mature for gas generation, indicating that the formation has been generative for oil within PEL 87.
High-quality and mature source rocks are likely to be present within the permit, as are sizeable turbidite-related reservoir systems.
Water depth across the permit is between 500m and 3,200m, with prospective features most likely located within 1,500m to 2,500m depths.
New 3D seismic data has identified various potential hydrocarbon play types, some exhibiting apparent Amplitude vs Anomaly (AVO) effects.
Technical studies are in progress, aimed at maturing these play types through to a lead/prospect inventory.
Pancontinental Orange Pty Ltd, as the operator, has 75%, Custos Investments 15% and Namcor 10%.
Woodside has an exclusive option over a 56% participating interest derived from Pancontinental’s 75%.
Pancontinental has an option of over 1% Participating Interest derived from Custos’ participating interest.
