Pancontinental Energy NL has increased the high-case prospective resource estimate for its offshore Namibian permit, PEL 87, to 6.1 billion barrels of oil, following the identification of two additional prospects and the completion of advanced technical studies.
In its December 2025 quarterly activity report, the ASX-listed company said new prospects at Phoebe West and the Northern Channel were identified through detailed interpretation of 3D seismic data. The revised estimate reflects Pancontinental’s net interest and represents the arithmetic sum of high-case prospective resources across the permit.
The company said basin modelling, seismic sequence stratigraphy and quantitative interpretation work have significantly reduced exploration risk across the PEL 87 prospect inventory. It now identifies eight prospects and leads within the permit, including two located outside the Saturn Complex.
Three anchor prospects, Oryx, Hyrax and Northern Channel, have been prioritised for future exploration. These are considered to offer large prospective resource volumes, with geological chances of success ranging from 21.2% to 26.2%.
Oryx and Hyrax share common geological characteristics within the Saturn Complex. Pancontinental said a successful exploration well at either prospect could materially de-risk the wider complex, which is estimated to host more than five billion barrels of recoverable oil on a high-case basis across six prospective features.
“With Oryx and Hyrax sharing common play elements within the Saturn Complex, a successful exploration well at either prospect has the potential to de-risk the entire Saturn Complex prospect inventory, which in itself could host over five billion barrels of recoverable oil on a high-case basis,” the company said.
Pancontinental said several groups continue to assess a potential farm-in opportunity for PEL 87, with interested parties having accessed the project’s virtual data room. The company said it would update the market should any material developments occur.
On the regulatory side, Pancontinental has applied to Namibia’s Ministry of Industry, Mines and Energy for a 12-month extension to the First Renewal Exploration Period for PEL 87. While formal feedback has not yet been received, the company said discussions with the ministry are ongoing and that it expects to provide an update once a decision is communicated.
Preparatory work for future drilling is also under way. Environmental consultants are progressing the Environmental Impact Assessment, with timelines aimed at supporting exploration or appraisal drilling before the end of 2026.
Pancontinental closed the quarter with a cash balance of N$36 million (US$3.2 million), which it said provides sufficient capacity to continue advancing the project while pursuing strategic partnerships.
The company added that Namibian consultancy Risk Based Solutions CC continues to support the preparation of the Environmental Impact Assessment for future exploration and appraisal drilling. Pancontinental said its team met with the consultants in Windhoek in early December 2025 to review timelines, with progress on track to support drilling before the end of 2026.
