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- Pancontinental Energy’s (PCL) Namibian subsidiary will not extend the PEL 37 licence, offshore Namibia, after failing to reach an agreement with its remaining joint venture (JV) partner
- The company says following the withdrawal of farm-in partner Tullow in March last year, the Namibian Ministry of Mines and Energy warned it would not consider a licence extension until both JV partners were in alignment
- However, Pancontinental determined that even if the licence was extended, it would expire on March 28, 2023, and this short amount of remaining time would deter investors
- As such, Pancontinental Namibia now plans to apply for a new longer-term licence given the current licence has little time left to do meaningful work or to attract a new farm-in partner
- Shares in PCL last traded at 0.5 cents each on September 8
Pancontinental Energy’s (PCL) Namibian subsidiary will not extend the PEL 37 licence, offshore Namibia, after failing to reach an agreement with its remaining joint venture partner.
Following the withdrawal of farm-in partner Tullow in March last year, the Namibian Ministry of Mines and Energy warned it would not consider a licence extension until both parties were in alignment.
Pancontinental, which has held the licence since March 2011, said it attempted to negotiate with its joint venture party but was unable to strike an agreement.
Moreover, it determined that even if the licence was extended, it would expire in March next year and this short timeframe left of the licence would potentially deter investors.
As such, Pancontinental Namibia has now planned to apply for a new longer-term licence given the current licence has little time left to do meaningful work or to attract a new farm-in partner.
The company said its discovery in Namibia’s Walvis basin shows geological similarities to two other major oil discoveries in offshore Namibia by Total and Shell in the Orange Basin.
Pancontinental continues to hold a 75 per cent interest in the PEL 87, which is in the Orange Basin and is on trend from Total’s oil discovery.
Shares in PCL last traded at 0.5 cents each on September 8.
