Perth – Pancontinental Oil and Gas shares will gain today with the its securing of Tullow Oil as a farm-in partner to its EL 0037 licence offshore Namibia.
Tullow, which has a market capitalisation of £9.4 billion (A$16 billion) is one of the most successful oil and gas explorers in Africa having opened up four new oil basins since 2006 in Uganda, Ghana, Kenya and French Guiana.
The UK major will be assigned a 65% operating interest in EL 0037 while Pancontinental will retain a free-carried 30% interest out of its current 95% interest.
Tullow is expected to spend between US$110 million and US$130 million on an extensive program of 2D and 3D seismic as well as an exploration well – subject to identifying a drillable prospect.
Paragon Oil & Gas (Pty) Ltd’s 5% free-carried interest will be included in the Tullow farmin expenditure.
EL 0037 is located just north of the HRT’s non-commercial Wingat-1 oil recovery, which importantly confirmed the presence of a working hydrocarbon system.
Pancontinental has interpreted potential reservoirs and traps in a number of large channel and turbidite “leads” at around the same stratigraphic level as the Wingat oil in EL 0037 that will be the focus of 3D seismic.
It had previously received an independent Mean Prospective Resource estimate of 8.2 billion barrels of oil for the licence.
