Pancontinental Energy NL (PCOGF)

[DrillaHill]

Cormorant prospect 124mmbbls - small but highly prospective

Cormorant is much smaller compared to some other prospects that have been drilled over the last years in Namibia
(Nimrod 5bnbbls; Welwitschia 10bnbbls)
- however Tullow thinks Cormorant is the most prospective:

"Cormorant shows a Type II AVO anomaly on seismic that is consistent with oil fill, although it is not necessarily directly associated with oil. Other seismic factors are also encouraging. Pancontinental believes that the Cormorant submarine fan target is highly prospective for oil, with high quality underlying mature oil source rocks and an interpreted highintegrity seal overlying the prospect."



But Cormorant seems to be a play opening well
with lots of follow-on potential prospects in the pipeline,
so in the event of success the price could be much bigger:

"The Kudu Shale source rock is interpreted to have charged Cormorant with oil of high quality by reference to regional wells, however only drilling will be able to determine if this interpretation is correct. In the event of success at Cormorant, a number of other, similar, large volume-potential turbidite Prospects are available for drilling within the 3D seismic area covering Cormorant, and further prospective features are mapped on 2D seismic. The Cormorant Prospect was unanimously selected by the PEL 37 Joint Venture as the first test of a series of large oil-prone prospects in PEL 37 that have been mapped by operator Tullow using high quality 3D seismic"