Pancontinental’s exploration investment in PEL 87 in the Orange Basin during the first licence period exceeded US$5 million.
PEL 87 was awarded to a joint venture in early 2018 for up to three terms over eight years, plus subsequent extensions, and may be converted to a production licence under pre-agreed terms.
The permit is currently in the first additional exploration period.
PEL 87 covers 10,970 km2 and is situated on-trend with several significant hydrocarbon discoveries made recently by TotalEnergies, Shell, and Galp Energia.
Most of this expenditure was associated with acquiring and processing the extensive 3D seismic survey, fully funded by Woodside Energy.
The first renewal exploration period started on January 23, 2024, and ends on January 22, 2026, with an associated work commitment to drill one exploration well or, if a drillable prospect is not identified, acquire either 500 km2 of 3D seismic data or 1,000 line km of 2D seismic data.
The participants in the PEL 87 joint venture are Pancontinental Orange (75%), Custos Investments (15%), and Namcor (10%).
Woodside Energy has an exclusive option for over 56% of Pancontinental’s stake.
Pancontinental will bear no financial liability for any future non-performance by the PEL 87 joint venture associated with the minimum exploration expenditure commitments of the first renewal exploration period.
Pancontinental has an option of over 1% participating interest derived from the Custos Participating Interest.
