Pancontinental Oil & Gas NL (ASX:PCL) is an ASX listed exploration company targeting conventional oil and gas projects.
It has key assets in Africa (Namibia) and the USA (California). The Company’s portfolio includes:
a) Lower entry cost, onshore gas projects that can be quick to drill and develop for commercial production, paired with;
b) Large resource potential offshore oil projects where the Company has strong international partners funding activity on its behalf
Main Drivers 2017/18
PANCONTINENTAL FULLY FUNDED FOR THREE WELLS (August 2017)
Dempsey-1, California (10% working interest)
Pancontinental’s first of two fully funded wells to be drilled in 2017, Dempsey-1 in the northern Sacramento Gas Basin, commenced
drilling on 2 August 2017. The well is programmed for a total depth of 3,200 metres (approximately 10,500 feet). The well is testing a
large 3D defined structure with multiple stacked sandstone reservoir targets. Dempsey net prospective resources: 77 Bcf
CEO - "After reaching total depth of 2,970m or 9,750 feet, the Dempsey1-15 gas well has been completed with 5 ½ inch casing for
production testing. In addition to potential gas pay identified in the shallower well section, wireline log data have confirmed
a number of gas saturated zones in the deeper, Primary targets. These are consistent with the earlier reported significant gas shows
recorded during drilling. We don’t have analogue producing well data from any other regional wells at the main target levels to aid in
our interpretation so the testing is essential to prove whether the rocks are capable of commercial rates of flow. So far however
the well is showing every sign of being the breakthrough well that we have planned and positioned for in this Basin”.
Tulainyo-2, California (earning equivalent 13.33% working interest)
The second fully funded well, the high potential Tulainyo-2 well, will appraise a potentially giant- scale, high pressure gas resource in
a circa 100km² anticlinal structure on the west flank of the Sacramento Gas Basin. The well is scheduled to spud in October, 2017.
Tulainyo net prospective resources: 233 Bcf
Namibian PEL 37 (20% working interest)
After spending US$34 million on prospect selection, Tullow has moved to drill the most favoured prospect by farming-out 30% interest
in the permit to ONGC Videsh Ltd to cover drilling cost. Pancontinental’s 20% interest in PEL 37 is free carried by Tullow. Free Carry
includes no cap on 1st Exploration Well. A drilling decision is required by December ’17, allowing application for an extension to the
permit’s tenure past March ’18, which would likely see drilling underway during H2 ’18.
Top 4 Prospects Gross P50 Prospective Resources total 915 MMbbl (183 MMbbl Net to PCL 20%).