Pancontinental Energy NL has announced that Woodside Energy has a deadline of 18 May 2025, to decide whether to proceed with its farm-in option for a 56% stake in the offshore PEL 87 project in Namibia.
The PEL 87 licence, located in the highly prospective Orange Basin, has generated significant interest from international oil and gas majors due to recent significant discoveries in the region.
“The Long Stop Date, which is 180 days from the delivery of the approved Seismic Licence, is now officially set for 18 May 2025. This represents a significant step forward in our collaboration with Woodside Energy, ensuring clarity on timelines as we advance this promising offshore project,” Pancontinental said.
The Long Stop Date follows the approval and delivery of a Seismic Licence by Namibian authorities to Woodside, granting access to the 3D seismic data acquired and processed in 2023.
“We are pleased to report that the Seismic Licence, which provides ongoing rights to the PEL 87 3D seismic data funded by Woodside, has been approved by the relevant Namibian authority. This license ensures compliance with all regulatory requirements and allows Woodside to fully evaluate the project’s potential,” the company noted.
This comes as under the Option Deed signed in March 2023, Woodside funded a US$35 million 3D seismic survey over PEL 87. If Woodside exercises the option, it will fully fund the drilling of the first exploration well.
“Having fully funded the US$35 million-plus 3D seismic survey, Woodside now holds an exclusive option to acquire 56% of our 75% interest in PEL 87. If the option is exercised, Woodside will fully carry the joint venture through the drilling of the first exploration well, enabling us to move this project to the next critical phase,” the company explained.
Pancontinental Orange Pty Ltd, the operator of PEL 87, holds a 75% interest, while Custos Investments and NAMCOR hold 15% and 10%, respectively.
Pancontinental retains an option to acquire 1% from Custos for US$1 million to maintain a 20% stake in Woodside proceeds with the farm-in.
“To ensure we retain a 20% interest in the project, we have entered into an option agreement with Custos Investments. For a consideration of US$1.5 million, this agreement allows us to acquire an additional 1% interest from Custos by paying a further US$1 million. This aligns our interests with the long-term potential of the project,” Pancontinental noted.
Pancontinental Energy NL is an Australian oil and gas exploration company with a significant focus on its Namibian offshore assets.
