Pancontinental Energy is still searching for a deepwater partner to fund exploration drilling on Namibia’s PEL 87, with the licence’s extended exploration period due to expire on 22 January 2027.
The Australian-listed explorer disclosed in its 2026 annual report that several interested parties continued evaluating the offshore Orange Basin licence during the year, with shortlisted groups given access to its virtual data room and progressing technical and commercial assessments.
However, Pancontinental had not announced a farm-out agreement by the date of the annual report, signed on 30 September.
The company said its objective remains to secure a “suitably qualified and financially capable partner” to participate in future exploration and drilling at PEL 87.
Securing a partner matters because the Namibian government granted Pancontinental a 12-month extension of PEL 87’s First Renewal Exploration Period to 22 January 2027, subject to a work programme that includes an environmental impact assessment, reprocessing and interpretation of 3D seismic data, and the drilling of an exploration well.
Pancontinental has been searching for a replacement partner since Woodside Energy decided in March 2025 not to exercise an option to acquire a 56% participating interest in PEL 87. Woodside had funded the acquisition of a 6,593 km² 3D seismic survey over the licence under the earlier agreement.
The government-approved extension has given Pancontinental additional time to progress the technical work and secure another partner before drilling.
The company said its principal focus during the year remained advancing and commercialising its 75%-owned PEL 87, where it continued interpreting the 6,593 km² 3D seismic dataset while progressing the regulatory and environmental work required for future drilling.
Pancontinental operates PEL 87 with a 75% interest, while Custos Investments holds 15% and the National Petroleum Corporation of Namibia (NAMCOR) holds 10%.
More prospects identified
While the search for a partner continues, Pancontinental has expanded its prospect inventory following further seismic data interpretation.
The company identified two additional prospects, Phoebe West and Northern Channel, during its technical work. They supplement the Saturn Complex prospects and wider lead inventory.
Pancontinental now considers Northern Channel, Oryx and Hyrax to be the three principal “anchor” prospects within PEL 87.
Oryx and Hyrax share geological characteristics within the Saturn Complex, meaning that a discovery at either could reduce some of the geological uncertainty associated with other prospects and leads within the complex.
Pancontinental said the additional technical work increased the overall prospective resource potential attributed to PEL 87, although the annual report does not provide a revised total prospective resource estimate.
Phoebe West and Northern Channel are not entirely new disclosures. Both were disclosed earlier in 2026, so the annual report updates their maturation rather than announcing their identification for the first time.
Work towards drilling
Pancontinental also continued work needed to prepare PEL 87 for eventual drilling.
An environmental impact assessment that began in 2025 progressed during the year, while the company worked on a feasibility study to reprocess part of the existing 3D seismic dataset.
The study is intended to determine whether the seismic data quality can be improved ahead of exploration drilling.
The company raised additional working capital while advancing PEL 87, receiving A$1.79 million during the financial year from exercising about 149.5 million listed options at A$0.012 each.
Pancontinental reported a net loss of A$1.43 million for the year ended June 2026, compared with a A$1.75 million loss the previous year.
Despite also pursuing a petroleum prospecting permit offshore New Zealand, Pancontinental said PEL 87 remains its principal exploration focus.
