Woodside Vitality Group Ltd. has opted to not train a proper to farm into Manufacturing Exploration License (PEL) 87 on Namibia’s aspect of the Orange Basin.
Beneath a March 2023 deal, PEL 87 operator Pancontinental Vitality NL granted the guy Australian firm an choice to acquire a 56 % stake within the offshore block, to be taken from Pancontinental’s 75 % curiosity. That was in alternate for Woodside totally funding a $35 million 3D seismic survey.
Forward of the choice’s expiry in Might, Woodside has now notified Pancontinental it won’t proceed with the farm-in, Pancontinental mentioned in an internet assertion Tuesday.
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The choice additionally cancels a possible acquisition by Pancontinental of a one % stake from co-venturer Custos Investments (Pty.) Ltd. The one % acquisition had been agreed with Custos in tandem with the settlement with Woodside to permit Pancontinental to have a 20 % curiosity within the block ought to Woodside chip off Pancontinental’s 75 % stake and go away 19 %.
Because it stands Pancontinental retains its 75 % possession. Custos retains 15 %. Nationwide Petroleum Company of Namibia owns the remaining 10 %.
“Pancontinental has prudently ready for the chance that Woodside might elect to not farm into PEL 87 and a course of is already underway to safe an alternate farmin associate to fund exploration drilling inside PEL 87 on the earliest alternative”, Pancontinental mentioned. “The Firm has acquired third occasion curiosity and, given the Firm’s low quarterly money burn, stays effectively funded to progress the farmout course of (31 December 2024 money steadiness $3.6 million)”.
The three way partnership retains entry to the collected knowledge, which confirmed “vital hydrocarbon prospectivity” after almost 6,600 sq. kilometers (2,548.27 miles) of labor, Pancontinental mentioned.
“PEL 87 is the one allow not held by a significant oil and fuel firm that’s adjoining and on pattern to the enormous Mopane discovery”, it famous, referring to an asset operated by Galp Energia SGPS SA.
In a concurrent report, Pancontinental up to date its internet potential oil estimate for PEL 87 to three.8 billion barrels within the “excessive case” state of affairs.
“[T]he Firm has independently progressed interpretation of the PEL 87 intra-Saturn exploration stock to incorporate six extra leads, with the Oryx and Hyrax options now thought of by Pancontinental as prospects”, the corporate mentioned.
Pancontinental sees “big potential with the figures evaluating favorably to vital discoveries on-trend to the south”, commented chief govt Iain Smith.
Pancontinental director Barry Rushworth mentioned, “These outcomes confirm the Saturn Complicated as a extremely engaging exploration play, notably given the numerous measurement of the targets and main discoveries that proceed to be made to our south inside a comparable geological setting”.
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