Pancontinental Energy’s plans to drill an exploration well in Namibia’s Orange Basin remain dependent on securing an investment partner, despite identifying prospective recoverable oil resources of 8.17 billion barrels across its PEL 87 exploration licence.
The Australian-listed company says it has been engaging potential partners since the second quarter of 2025, but has yet to conclude an agreement that would provide the funding and technical resources required to drill its first exploration well in the licence area.
According to its 2026 annual report, Pancontinental is seeking a partner capable of financing deepwater drilling in PEL 87, which covers 10,947 square kilometres offshore Namibia.
The company operates the licence with a 75% interest, while Custos Investments holds 15% and the National Petroleum Corporation of Namibia (NAMCOR) holds the remaining 10%.
Pancontinental’s latest assessment places the licence’s combined best-estimate prospective recoverable resources at 8.17 billion barrels of oil, including approximately 6.13 billion barrels attributable to its 75% interest.
These figures represent unrisked estimates of potentially recoverable petroleum from undiscovered accumulations, rather than confirmed oil reserves or discoveries.
The company’s exploration inventory includes Oryx, Hyrax, Xerux, Oryx North, Addax Fan, Addax South, Phoebe West and Northern Channel, with Oryx, Hyrax and Northern Channel identified as the three principal prospects.
Oryx alone carries a best-estimate prospective recoverable resource of 1.09 billion barrels, while Pancontinental’s technical studies have also incorporated the Northern Channel and Phoebe West prospects into its exploration inventory.
The company said interested parties have been given access to its virtual data room to evaluate the project’s geological and commercial potential, although it has not disclosed their identities or how many are involved in discussions.
Pancontinental chairman Ernie Myers said securing the right partner remains central to the company’s strategy.
“Our farmout endeavours remain ongoing. We continue to engage with potential partners and assess opportunities to bring additional technical expertise, financial capacity and operational experience to the PEL 87 project,” Myers said.
The company’s search for a partner comes as it approaches another regulatory milestone in Namibia.
The Ministry of Industries, Mines and Energy approved a 12-month extension of PEL 87’s first renewal exploration period in March 2026, extending it to 22 January 2027.
The extension was granted subject to commitments covering an environmental impact assessment, reprocessing and interpretation of three-dimensional seismic data, and drilling an exploration well.
Pancontinental has already progressed the environmental assessment to a stage where it can be completed once a drilling prospect and location have been selected.
It has also awarded DUG Technology a contract to undertake a pilot seismic reprocessing programme aimed at improving the quality of existing data and the interpretation of potential hydrocarbon-bearing formations.
The work follows technical studies involving basin modelling, seismic sequence stratigraphy and quantitative interpretation, which contributed to the company’s assessment of the prospects within PEL 87.
Pancontinental said it intends to approach the ministry jointly with a prospective partner once a farm-in agreement has been secured, particularly to discuss the timing and logistical requirements of the drilling programme.
The company is also seeking approval to enter the second renewal exploration period from 23 January 2027, which would provide additional time to progress the licence.
The annual report shows that Pancontinental recorded a loss of A$1.43 million during the financial year ended 30 June 2026, compared with A$1.75 million in the previous year.
It raised approximately A$1.79 million through the exercise of share options, providing additional working capital for exploration studies, regulatory activities and corporate expenditure.
Pancontinental said its immediate priorities remain securing a partner, completing the outstanding environmental and regulatory requirements, improving its technical understanding of the prospects and preparing for an exploration well.
Although PEL 87 contains substantial estimated prospective resources, the company has not announced a drilling date, and the timing of its first well remains dependent on the outcome of its partnership discussions and regulatory processes.
