Woodside Energy has elected not to exercise its option to farm-in to the PEL 87 project on blocks 2713A and 2713B in the Orange Basin.
The Australian company gave the notice before the extended stop date of May 18th, 2025.
Woodside Energy would have had an exclusive option over a 56% participating interest from Pancontinental’s 75% after funding the 3D seismic survey across PEL 87 completed in May 2023.
The parties executed an option deed in March 2023, which saw Woodside Energy spend US$35 million for the 3D seismic survey.
If Woodside Energy had exercised the option, the parties would have entered into a farmout agreement to fully fund the joint venture by drilling the first exploration well to be drilled within PEL 87.
Woodside Energy would also have paid Pancontinental approximately US$2.5 million, of which approximately US$1.5 million is for reimbursement of a portion of past costs.
The joint venture has Pancontinental Orange (75%), Custos Investments (15%) and Namcor (10%).
Sintana Energy, which has a 49% interest in Custos, confirmed that Pancontinental has received notification from Woodside Energy.
Sintana Energy says a process is underway to secure an alternate farm-in partner to fund exploration drilling within PEL 87 at the earliest opportunity.
“Pancontinental and the Joint Venture partners continue to mature and refine a growing inventory on PEL 87,” Sintana Energy says.
Custos Energy CEO, businessman Knowledge Katti said they look forward to deploying a portfolio of relationships with operators including the supermajors to bring forward the potential of PEL 87.
Sintana Energy CEO Robert Bose says the extensive dataset arising from the seismic acquisition campaign funded by Woodside Energy and the continuing work to define and refine a significant inventory of leads and prospects position the PEL 87 partners to expedite farm-in discussions.
“PEL 87 is an integral part of our Orange Basin portfolio.” Bose says.
