Woodside Energy Inc. has opted not to exercise its farm-in option for Petroleum Exploration License 87 (PEL 87) in Namibia’s Orange Basin, Sintana Energy has confirmed.
The decision comes ahead of the long stop date of May 18, 2025, after which Woodside’s option was set to expire.
Pancontinental Orange Pty Ltd., a subsidiary of Pancontinental Energy NL, operates PEL 87 with a 75% stake, while Custos Investments (Pty) Ltd. holds 15%, and the National Petroleum Corporation of Namibia (NAMCOR) owns 10%. Sintana Energy Inc. has a 49% indirect interest in Custos.
Following Woodside’s withdrawal, Pancontinental and its joint venture partners are actively seeking a new farm-in partner to finance exploration drilling.
“We look forward to deploying our portfolio of relationships with operators, including the supermajors, to bring forward the potential of PEL 87,” said Knowledge Katti, Chairman and Chief Executive Officer of Custos and a director of Sintana.
Robert Bose, CEO of Sintana, emphasized the project’s potential despite Woodside’s exit, noting that PEL 87 remains a key part of their Orange Basin portfolio.
“The extensive dataset arising from the seismic acquisition campaign funded by Woodside, together with the continuing work to define and refine a significant inventory of leads and prospects, position the PEL 87 partners to expedite farm-in discussions,” Bose said.
Woodside had initially committed to a US$35 million 3D seismic survey over PEL 87 under an Option Deed signed in March 2023. If it had exercised the option, Woodside would have fully funded the drilling of the first exploration well.
Despite Woodside’s decision, Custos remains optimistic about the prospects of PEL 87. The high-quality 6,593 km² 3D seismic dataset has identified multiple intra-Saturn leads and prospects comparable in size to recent Orange Basin discoveries.
“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,” Pancontinental stated earlier.
Pancontinental also retains an option to acquire an additional 1% from Custos for US$1 million to maintain a 20% stake should a new farm-in partner be secured.
“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 last year.
The PEL 87 partners remain committed to advancing exploration efforts in Namibia’s Orange Basin as they seek alternative investors.
