Pancontinental Energy is seeking a farm-in partner to support a proposed US$76 million, approximately N$1.2 billion, exploration programme at Petroleum Exploration Licence 87 (PEL 87) in Namibia’s offshore Orange Basin.
The Australian-listed explorer said the expenditure is budgeted for the 12-month licence extension period if it secures a suitably qualified and financially capable farm-in partner, meaning the N$1.2 billion does not represent an unconditional spending commitment by Pancontinental.
According to the company’s FY2026 annual report, several interested parties continued to assess PEL 87 during the financial year, with shortlisted groups granted access to its virtual data room for technical and commercial evaluations.
Pancontinental operates PEL 87 with a 75% participating interest, while Custos Investments holds 15% and the National Petroleum Corporation of Namibia (NAMCOR) holds 10%.
“During the year, the Company continued to mature the prospectivity identified from its 6,593 km² 3D seismic dataset, progressed regulatory and environmental work required for future exploration drilling and continued its farm-out process aimed at securing a suitably qualified deepwater exploration partner,” the company said.
The search for a partner comes as Pancontinental faces significant funding requirements to move PEL 87 towards exploration drilling.
During FY2026, the company raised US$1.79 million, approximately N$29.8 million, through the exercise of listed options, while reporting a US$1.43 million, approximately N$23.8 million, loss for the year.
PEL 87’s First Renewal Exploration Period has been extended to 22 January 2027, with commitments including the completion of an Environmental Impact Assessment, reprocessing and interpretation of 3D seismic data and the drilling of an exploration well.
Pancontinental continued technical work on its 6,593 km² 3D seismic dataset during the financial year, including basin modelling, quantitative interpretation and seismic sequence stratigraphy.
The work identified additional prospects, including Phoebe West and Northern Channel, adding to the licence’s existing prospect inventory.
Pancontinental has identified Oryx, Hyrax and Northern Channel as the three principal anchor prospects within PEL 87.
Oryx and Hyrax share common play elements within the Saturn Complex, with the company saying a discovery at either prospect could reduce exploration risk across other prospects and leads within the complex.
“Pancontinental considers Oryx, Hyrax and Northern Channel to be the three principal ‘anchor’ prospects within PEL 87,” the company said.
“Oryx and Hyrax share common play elements within the Saturn Complex, meaning that exploration success at either prospect has the potential to significantly de-risk other prospects and leads within the complex.”
Pancontinental also said its Woodside-funded 3D seismic survey, which cost more than US$38 million, approximately N$633 million, satisfies the applicable seismic expenditure commitment under PEL 87.
