Pancontinental’s PEL 87 Prospective Resources Reach 6.1 Billion Barrels Net
Pancontinental Energy has identified significant new oil prospects within its PEL 87 permit, boosting total high-case prospective resources to 6.1 billion barrels. The company advances its farmout process and seeks a 12-month exploration extension amid strong regional activity.
- New Northern Channel and Phoebe West prospects added to PEL 87
- High-case prospective resources now estimated at 6.1 billion barrels net to Pancontinental
- Farmout process ongoing with multiple groups accessing data room
- Application submitted for 12-month extension of exploration period
- Quarter-end cash balance of $3.7 million supported by recent option exercises
Expanding the PEL 87 Opportunity
Pancontinental Energy NL (ASX, PCL) has delivered a compelling update for the September 2025 quarter, revealing the addition of two new prospects, Northern Channel and Phoebe West, within its flagship PEL 87 permit offshore Namibia. These prospects have significantly bolstered the company’s prospective oil resources, with high-case estimates now reaching an impressive 6.1 billion barrels net to Pancontinental.
The Northern Channel prospect, located at the northern edge of the 3D seismic survey area, features stacked turbidite reservoir sequences with promising analogues to the nearby Oryx prospect. Meanwhile, Phoebe West sits atop the Kudu source rock and represents the largest connected sand body mapped outside the Saturn Complex, supported by strong seismic anomalies indicative of hydrocarbon presence.
Strategic Progress and Regional Context
Pancontinental continues to actively engage with potential farmout partners, maintaining a virtual data room that has attracted a majority of interested groups since mid-2025. The company has also applied to the Namibian Ministry of Industry, Mines and Energy for a 12-month extension to its first renewal exploration period, seeking to extend its timeline to January 2027. This extension would provide additional runway to advance exploration and appraisal activities.
Regional activity in the Orange Basin underscores the basin’s prospectivity, with recent gas and condensate discoveries by operators such as Azule Energy and Rhino Resources at Volans-1X, and ongoing appraisal drilling by BW Energy near the Kudu gas field. Meanwhile, major players including Galp Energia, TotalEnergies, and Chevron are progressing development and exploration plans, highlighting the basin’s growing strategic importance.
Financial Position and Outlook
Pancontinental remains well-funded with a cash balance of $3.7 million at quarter-end, bolstered by proceeds from the exercise of nearly 150 million listed options earlier in the year. While no production or development activities occurred during the quarter, the company’s focus on resource definition and farmout negotiations positions it well for the next phase of growth.
Environmental considerations are also underway, with Pancontinental engaging local consultants to prepare an Environmental Impact Assessment in anticipation of future drilling campaigns. This proactive approach aligns with regulatory expectations and supports sustainable exploration practices.
Bottom Line?
With robust resource upgrades and active farmout engagement, Pancontinental’s next moves will be pivotal in unlocking value from PEL 87’s vast potential.
Questions in the middle?
- Will the Namibian Ministry approve the requested 12-month extension for PEL 87 exploration?
- Which partners will emerge from the farmout process to share development risks and costs?
- How will drilling results from nearby permits influence Pancontinental’s exploration strategy?
