Pancontinental commences drilling next door to Exxon
Pancontinental Oil & Gas (ASX:PCL) has provided a crucial update on its Cormorant-1 offshore well, informing the market that drilling is now underway on site.
PCL holds an effective 20% interest in the project, and is not required to contribute to the uncapped cost of drilling. PEL 37 covers an area of 17,295 km2 in the Walvis Basin offshore Namibia (an emerging African Nation that investors should take into consideration when determining their investment focus as there are still risks involved).
Cormorant-1 is being drilled by the Ocean Rig Poseidon in 45 metres of water. The sixth generation drillship will test one of several mid-Cretaceous marine turbidite ‘fan’ sandstone systems on site.
Drilling and evaluation of the well is expected to take 34 days. The well has gross best estimate of recoverable resource potential of 124 million barrels of oil.
PEL 37 is operated by Tullow Namibia Limited, a subsidiary of Tullow Oil plc.
Due to the commencement of drilling, PCL will now receive US$5.5m from Africa Energy Corp.
The key participants in Cormorant-1 are:
- Tullow Namibia Limited (operator) 35%
- Pancontinental Namibia Pty Ltd 30%
- ONGC Videsh Limited 30%
- Paragon Oil & Gas Ltd 5%
Pancontinental owns two thirds of Pancontinental Namibia Pty td.
Of course, as with all oil exploration, success is not guaranteed — consider your own personal circumstances before investing, and seek professional financial advice.
For those unfamiliar with the Pancontinental story, it is a wildcat oil and gas group that has evaluated several globally significant exploration plays during its long history.
It has a current position in offshore Namibia, where oil giant ExxonMobil has farmed into the block next door to Pancontinental’s PEL 37 for a 40% interest.
As stated in our in-depth look at Pancontinental last week, Exxon’s block contains an extension of the play trend Pancontinental is drilling with the Cormorant-1.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.