Pancontinental Energy has until 22 January 2027 to advance exploration on its offshore Petroleum Exploration Licence (PEL) 87 after the Namibian government granted the company a 12-month extension, setting the stage for a critical period during which it must improve its seismic data, secure a farm-in partner and prepare for its first exploration well.
The extension, approved by the Ministry of Industries, Mines and Energy (MIME), extends the First Renewal Exploration Period by one year.
Pancontinental said it has since received confirmation from the ministry that the draft Deed of Amendment to the PEL 87 Petroleum Agreement is acceptable and that the parties should proceed to signing the agreement.
One of the key conditions attached to the extension is the reprocessing of the licence’s existing three-dimensional seismic dataset.
Rather than acquiring new seismic data, the company has begun a feasibility study to determine the most effective way of improving the quality of the existing subsurface images before selecting a drilling location.
Pancontinental said specialist seismic processing companies are being invited to compare a range of post-stack and pre-stack processing techniques, including test-processing portions of the dataset to assess potential improvements in image quality against cost and processing time.
The improved seismic interpretation is expected to reduce geological uncertainty and help refine drilling targets before the company commits to the next phase of exploration.
At the same time, Pancontinental continues discussions with several prospective farm-in partners interested in participating in the project.
Although the company declined to identify the parties because of confidentiality agreements, it confirmed that several groups remain engaged in evaluating the opportunity.
The company said that once a farm-in agreement has been concluded, it intends to jointly engage the ministry to determine the timing and logistical requirements for completing the licence’s committed work programme, the centrepiece of which is the drilling of an exploration well.
The extension comes as exploration activity intensifies across Namibia’s Orange Basin, where several neighbouring operators reported significant progress during the quarter.
Shell announced a light oil discovery at its Merlin-1X well in PEL 39, while Rhino Resources and Azule Energy confirmed reservoir continuity at the Capricornus discovery after intersecting 46 metres of gross hydrocarbon pay at the Capricornus-1A appraisal well. The PEL 85 joint venture is now planning an extensive 3D seismic programme covering 8,633 square kilometres between late 2026 and 2030.
Elsewhere, Galp Energia continues preparations to drill three exploration and appraisal wells at its Mopane discovery complex during the second half of 2026, while TotalEnergies is advancing the Venus development towards a Final Investment Decision after submitting a field development plan to the Namibian government. Chevron is also expected to spud its Nabba-1X exploration well in PEL 90 during the fourth quarter of the year.
Pancontinental believes that continued success across neighbouring licences reinforces the prospectivity of PEL 87 and supports ongoing discussions with potential partners.
The company ended the June quarter with A$2.4 million in cash and cash equivalents, providing funding to continue seismic studies and farm-out negotiations during what is expected to be a decisive year for the licence’s future.
