Pancontinental Energy has confirmed that its PEL 87 license offshore Namibia contains hydrocarbons with a gas-to-oil ratio (GOR) of just 200 standard cubic feet per barrel (scf/bbl), indicating a predominantly oil-charged system.
This technical finding, derived from a July 2025 basin modelling study, points to simplified development potential compared to gas-heavy discoveries elsewhere in the basin.
PEL 87, located in the central part of the Orange Basin, is operated by Pancontinental Energy NL (ASX: PCL) through its wholly owned Namibian subsidiary Pancontinental Orange Pty Ltd.
The company holds a 75% interest in the block. Its joint venture partner, Custos Energy (Pty) Ltd, has 15%, while the National Petroleum Corporation of Namibia (Namcor) owns the remaining 10%. Custos is majority-owned by Sintana Energy Inc. (TSXV: SEI).
The main target within the license is the Saturn Complex, which includes the Oryx Prospect.
Pancontinental estimates that Oryx could hold up to 2.5 billion barrels of oil (high-case, net to Pancontinental). The geological chance of success (GCoS) for Oryx was recently upgraded to 26.2%.
According to the company’s July 2025 announcement, the depth to the prospective oil-bearing reservoir at Oryx is estimated to be approximately 2,900 metres below sea level.
Water depths in the license area range from 500 to 1,600 metres, placing the Saturn Complex in deep to ultra-deepwater territory.
The low GOR suggests that any potential discovery at Oryx would contain minimal associated gas.
In offshore developments, such systems typically require less investment in gas processing infrastructure, allowing for reduced capital expenditure and shorter timelines to production.
In contrast, other discoveries in the basin, such as Shell’s Graff and TotalEnergies’ Venus fields, contain significant associated gas.
Graff is believed to hold around 1 billion barrels of oil and up to 6 trillion cubic feet of gas.
These projects may require gas reinjection, compression systems, and the development of additional midstream infrastructure.
Namibia’s Orange Basin has drawn global attention following the 2022 discovery of Venus-1X and Graff-1X, both in the southern part of the offshore basin.
These successes sparked increased interest from supermajors and independents alike, leading to a surge in seismic surveys, farm-ins, and drill campaigns across the basin.
Pancontinental’s PEL 87 is positioned northwest of Shell’s Graff and Jonker discoveries and TotalEnergies’ Venus and Mangetti finds.
The company previously secured a two-year extension for the second renewal exploration period, allowing time for further analysis and preparations for drilling.
Despite the technical advantage of a low gas profile, Pancontinental’s share price declined by about 8% in late July 2025.
No new drilling has yet occurred at PEL 87.
The joint venture is currently focused on securing a farm-out partner to support the first exploration well targeting the Saturn Complex.
Pancontinental’s PEL 87 license remains a frontier block with significant upside potential.
The presence of oil-prone source rock, confirmed structural traps, and a low GOR system offers a development scenario that differs markedly from other high-profile blocks in the basin.
