Pancontinental Energy NL (PCOGF)

[DrillaHill]

"..in order to avoid a possible default situation.."

Deescalation - good news imo! Also imo the recent farmin of AEC who are said to have a strong relationship with Tullow speaks volumes about a potential well to be drilled soon, may get an update from Tullow next week, fingers crossed!

Namibia PEL 37 (01/05/2017)
"In December 2016, Pancontinental Oil & Gas NL on behalf of its subsidiary Pancontinental Namibia Pty Ltd (“Pancontinental”, “the Company”) announced that it had received a cash call from Tullow Oil (“Tullow”) in the amount of US $552,897 for administration and other “non-exploration” costs in respect of operations in licence PEL 37, Namibia for the years 2014 through to 2016. As explained in the announcement Pancontinental has advised that it believes Tullow does not have the right to make such a cash call under the terms of the free carry with Tullow and has reserved its rights regarding the matter. However, the structure of the Joint Operating Agreement requires payment of the cash call first in order to avoid a possible default situation, and then resolution of any disputes later. Consequently, Pancontinental has offered a staged payment plan which Tullow has accepted. Payments are to be made without prejudice to the Company’s right to contest the cash call and the Company is considering its position on the matter."

Africa Energy Corp. Farms-In to Namibia PEL 37 (11/30/16)
"Pancontinental agrees to assign a 10% interest in Namibian project PEL 37 to Africa Energy Corp. (“AEC”) - In exchange AEC will make staged payments, subject to certain conditions, expected to total US$6.5 million (approximately Australian Dollars $8.5 million) - Pancontinental retains a 20% free-carried interest in Namibia PEL 37 - New partner AEC is building an African oil portfolio, assembled by ist highly regarded team drawn from Tullow Oil (Tullow), Africa Oil and Lundin Group."

Tullow Elects to Enter Drilling Phase of Farmin Namibia 37 (04/08/16)
"7 April 2016 is a significant milestone for the project because Tullow was entitled under the farmin agreement to withdraw from Namibia PEL 37 and re-assign its interest to Pancontinental by giving written notice on or before this date. Tullow has elected to continue in the joint venture and, as operator, will continue to work towards drilling that is required by 27 March 2017 under the farmout agreement between Pancontinental and Tullow, provided that a drillable prospect is identified from the 2D seismic or 3D seismic."