Pancontinental Energy's Quarterly Activity Report Highlights Seismic Data Progress and Exploration Plans

PEL 87 Project Update

Pancontinental Energy has been diligently working on the interpretation and analysis of a 6,593 km² 3D pre-stack depth migration (PSDM) seismic dataset. This work builds on preliminary interpretations that confirmed the presence of various Cretaceous and Tertiary hydrocarbon play concepts within PEL 87. The company's primary focus remains on the Cretaceous play concepts, which include Barremian channelised fans and Cenomanian channels/erosional remnants.

Seismic 'bright' amplitudes and Amplitude vs Offset (AVO) anomalies have been identified within several exploration leads, particularly within the Saturn complex. The company has engaged an independent specialist consultancy to conduct an AVO study, which began in early July. This study will include AVO-specific seismic data conditioning and rock physics modelling to generate predicted seismic responses for comparison with real-life seismic signatures.

Intra-Saturn AVO Anomaly

Figure 1 in the report shows an example of one of the intra-Saturn leads exhibiting AVO effects with anomalous amplitudes on the ultra-far seismic offset data. Further interpretation work is required to determine the precise depositional nature of these features within the Saturn complex.

Barremian/Aptian Channelised Fan Play

The Barremian/Aptian channelised fan play is considered a possible analogue to the on-trend Venus oil discovery. Figure 2 in the report displays a 3D perspective of the Top Aptian horizon with ultra-far offset amplitudes overlain. These 'bright' amplitudes indicate the presence of deepwater feeder channels running westwards into what Pancontinental interprets as deepwater turbidite fan systems. These features are believed to host high-quality reservoir sands, comparable to those in TotalEnergies' giant Venus discovery, which reportedly holds an estimated 5 billion barrels of oil-in-place.

Orange Basin Update

The Namibian Orange Basin is experiencing a brief hiatus in drilling activity after significant activity since early 2022. Recent drilling results, such as Galp Energia's AVO-supported Mopane-1X and Mopane-2X oil discoveries and TotalEnergies' Mangetti-1X discovery, are noteworthy. Galp Energia's Mopane-1X encountered two significant columns of oil in high-quality sandstone reservoirs, flowing at a maximum rate of 14,000 barrels of oil per day (bopd). Galp Energia is preparing for further exploration and appraisal drilling in Q4 2024.

Pancontinental views the Mopane, Venus, and Mangetti discoveries as positive indicators for PEL 87 prospectivity, as they reside in a similar geological setting to PEL 87. Additionally, Rhino Resources executed a farmout agreement with Azule Energy, a joint venture between Eni and BP, to drill two exploration wells within PEL 85, with drilling commencing in Q4 2024. Chevron is also preparing to begin exploration drilling in PEL 90.

Corporate and Financial Update

As of 30 June 2024, Pancontinental Energy had cash and cash equivalents of $4.3 million. The company received $600,000 from the conversion of 50 million listed options into PCL shares. Additionally, 20 million unlisted options were converted into 13.9 million PCL shares through the cashless exercise facility of the employee Incentive Awards Plan.

Exploration expenditure during the reporting period amounted to $244,361, covering consulting, legal, travel, and Namibian in-country expenses.