Pancontinental Oil & Gas NL, an oil and gas exploration company with key assets in Australia, Kenya and Namibia, has presented its March 2014 quarterly activities report.
During the March Quarter, Pancontinental Oil and Gas NL progressed exploration and evaluation activities on several fronts within its extensive and high quality asset portfolio in Kenya, Namibia and Australia.
Pancontinental has high-percentage interests in a range of large oil & gas targets in Africa and Australia and is highly leveraged to potentially world-class hydrocarbon reserves with drilling success.
A major development during the Quarter was the discovery of hydrocarbons in the recently completed Sunbird-1 well, offshore Kenya in the L10A permit.
While this discovery is subject to ongoing assessment, it opens up a significant opportunity to explore for larger volumes of gas and oil over Pancontinental’s extensive portfolio of prospects and leads offshore Kenya. Further information will be provided on the Sunbird-1 discovery as soon as analysis of the hydrocarbon zone have been completed.
Elsewhere, farm-out discussions were successfully completed for the Kenya Permit L6 with a new farm-in partner secured. As a result, Pancontinental and L6 Operator FAR Limited will be free-carried for the drilling of an onshore well which is expected to spud in early 2015.
A major program of 2D and 3D seismic acquisition was also completed in the permit EL 0037 offshore Namibia, paving the way for drilling targets to be identified.
The level of international interest and activity in Namibia, both offshore and onshore, is increasing rapidly with the recent offshore entry of companies such as Shell, Tullow, Repsol, OMV and Murphy.
Pancontinental is well placed to participate in this rapidly emerging oil and gas frontier with its 30% interest in offshore EL 0037, which covers a total area of 17,295 km2 in the highly prospective Walvis Basin.
As at 31 March 2014, Pancontinental’s cash position was $24.3 million. The major items of expenditure during the March 2014 Quarter were Exploration and Evaluation ($9.2 million) and Administration ($0.4 million).
Pancontinental continues to review other exploration and acquisition opportunities in Africa and elsewhere, and intends to grow the asset portfolio should these new assets meet the Company’s stringent selection process.
Press Release, May 01, 2014