Pancontinental commences drilling next door to Exxon
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
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.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
