PEL 87 Prospects Could Yield Over 5 Billion Barrels, Pancontinental Reports
Pancontinental Energy NL has revealed significant progress in its Namibian Orange Basin exploration, spotlighting a massive 5 billion barrel oil prospect in PEL 87 and advancing farmout efforts to fund upcoming drilling.
- PEL 87 holds potential for over 5 billion barrels of recoverable oil
- Three anchor prospects identified – Oryx, Hyrax, Northern Channel
- Farmout process underway with strong interest from majors and NOCs
- Environmental Impact Assessment and permit extension in progress
- Nearby discoveries by partners and majors bolster basin outlook
Exploration Momentum in Namibia’s Orange Basin
Pancontinental Energy NL (PCL) has provided a comprehensive update at its 2025 Annual General Meeting, underscoring the growing promise of its exploration activities in Namibia’s Orange Basin. Central to this optimism is PEL 87, a vast permit area spanning nearly 11,000 square kilometres, where Pancontinental operates with a 75% stake. The company’s methodical approach, leveraging a US$38 million 3D seismic dataset and specialist geological studies, has significantly enhanced the understanding of the basin’s prospectivity.
Data-Driven Confidence and Prospect Identification
Key technical analyses; sequence stratigraphy, basin modelling, and quantitative seismic interpretation; have collectively reduced geological risk and boosted confidence in reservoir quality and hydrocarbon presence. These efforts have led to the identification of eight prospects, with three “anchor” prospects named Oryx, Hyrax, and Northern Channel. Notably, a single exploration well planned within the Saturn Complex could test a play with potential recoverable resources exceeding 5 billion barrels of oil, a scale that could transform the basin’s commercial outlook.
Strategic Farmout and Industry Interest
To fund the forthcoming drilling campaign, Pancontinental has opened a farmout dataroom since mid-May 2025, attracting significant interest from major oil companies, national oil companies, and large independents. This strategic move aims to share the financial burden while accelerating exploration progress. Concurrently, the company is advancing environmental impact assessments and has applied for an extension of its exploration permit, laying the regulatory groundwork for drilling activities anticipated in 2026.
Basin-Wide Activity and Catalysts
The Orange Basin is witnessing a surge in exploration and appraisal activity, with partners like TotalEnergies, Shell, GALP Energia, Chevron, and Rhino Resources making discoveries and planning wells. Nearby successes, such as the Mopane contingent resources estimated at 875 million barrels and discoveries at Capricornus, Volans, and Sagittarius, reinforce the basin’s potential. Upcoming catalysts include the Final Investment Decision (FID) on the Venus project and GALP’s partner selection for its PEL 83 stake, which could further reshape the basin’s investment landscape.
Financial and Operational Positioning
Pancontinental remains well funded with minimal corporate overheads, positioning it to capitalize on exploration opportunities without undue financial strain. The company’s technical advisor, Mr Ric Jason, brings over 30 years of petroleum geology experience, lending credibility to the geological interpretations and resource estimates presented. While prospective resources remain unrisked and contingent on future drilling success, the scale and quality of prospects in PEL 87 mark a compelling chapter in Namibia’s oil exploration story.
Bottom Line?
With a potential 5 billion barrel prize on the horizon, Pancontinental’s next drilling campaign could redefine Namibia’s oil frontier.
Questions in the middle?
- Which partners will Pancontinental secure through the PEL 87 farmout process?
- How will upcoming drilling results at Saturn Complex influence resource estimates and project economics?
- What impact will regional developments like the Venus FID and GALP’s divestment have on basin activity?
