Pancontinetal Energy is working to finalise the joint venture with Woodside Energy regarding PEL 87 in the Orange Basin.
PEL 87 on block 2713 is a large, 10,947 km² area on a trend where industry giants Shell, Galp Energia and Total have acquired interests.
The companies signed an option deed agreement on March 2, 2024, for Woodside Energy to farm into a Pancontinental-operated deep-water permit.
Before the agreement, Pancontinental owned 75%, Custos Investments 15%, and Namcor a 10% interest in PEL 83.
Woodside Energy would earn 56% of Pancontinental’s 75% after funding a US$35 million 3D seismic survey covering a minimum area of 5,000m2.
The company also agreed to pay Pancontinental US$1.5 million cash in exchange for earning 56% operatorship.
The agreement stated that Woodside would have to exercise the option 180 days after the seismic survey data delivery.
On Tuesday, Pancontinental stated in its quarterly report that Woodside Energy delivered the first part of the agreement in mid-April 2024.
The next step is to finalise the joint venture and wait for the mines ministry’s approvals for the seismic license.
After the approvals, Woodside would pay another US$2.5 million, of which US$1.5 million will be reimbursed to Pancontinental for its past costs. Woodside would then drill an initial exploration well carrying Pancontinental at 20% interest.
Now that Woodside has earned the 56%, it leaves Pancontinental with 19%. To maintain its 20% interest, Pancontinetal has agreed with Custos Investments to acquire 1% for US$1.5 million.
Galp’s Mopane discovery source of hope
Pancontinental says the Galp Energia’s Mopane discoveries are an extremely positive indicator for its PEL 87 prospectivity, as they are believed to reside in a similar, intra-slope setting.
The Mopane discovery holds an estimated 10 billion barrels of oil equivalent or higher.
The company also mentions TotalEnergies’ drilling of the Venus-2A appraisal well and drilling of the Mangetti-1X exploration well, which confirmed the presence of oil in two columns, one of which is thought to be a Saturn Moosehead-1.
