SUMMARY
Namibia Offshore
-A drill ship has been contracted by the PEL 37 joint venture to drill Cormorant-1 (PCL 20%). This highly anticipated well is scheduled to commence 1 September, 2018.
- At the spud of Cormorant-1, Pancontinental is due to receive a cash payment of US $5.5 million (AU $7 million) by Africa Energy Corp. to settle its investment into the project.
- Further endorsing the prospectivity of the area, ExxonMobil has taken a 40% interest in PEL 82, located immediately south of Pancontinental’s PEL 37.
- Initial exploration studies have commenced in Pancontinental’s second large Namibian licence PEL 87. This was awarded in the last quarter to the Company as operator with a controlling, 75% interest.
USA California- Onshore
- Gas production testing is continuing on the Dempsey 1-15 gas discovery well with additional zones being opened to flow. Current operations are focussed on testing two shallower zones, however still beneath the overlying field production depths.
- The Tulainyo 2-7 well has been flow tested in two stages over a range of zones. The gas that has flowed into the well is of good quality, although currently at low rates, that have yet to be measured accurately. Further analysis is underway to determine whether flow rates are being impeded by damage to the reservoir caused during drilling of the well.
- Permitting has commenced for the re-entry of the Alvares-1 gas discovery in which Pancontinental is earning a 15% interest.
Corporate
- During the quarter the Company raised $1.6 million before costs through the issue of Convertible Notes.
- Cash balance of AU $1.5 million as at 31 March.
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