Pancontinental Energy NL (ASX: PCL) ('Pancontinental' or 'Company') is pleased to advise that the Company has, as Operator and on behalf the PEL 87 Joint Venture, and in accordance with the Namibian Petroleum (Exploration & Production) Act (1991), submitted its application to the Namibian Ministry of Mines and Energy (MME) to formally approve the PEL 87 permit entering into the first additional exploration period.

The PEL 87 current (first) licence period required the Joint Venture to invest a minimum of US$5 million in exploration-related activities. The exploration investment in PEL 87 during the first licence period currently exceeds this amount by a significant margin. The majority of this expenditure is associated with the acquisition and processing of an extensive 3D seismic survey (6,593 km2), fully-funded by Woodside. The first additional exploration period will run from 23 January 2024 to 22 January 2026, with an associated work commitment to drill one exploration well (or, if a drillable prospect is not identified, acquire either 500 km2 of 3D seismic data or 1,000 line kms of 2D seismic data). Pancontinental will not bear financial liability for any future non-performance by the PEL 87 Joint Venture associated with the minimum exploration expenditure commitments of the first additional exploration period.

Meetings, Africa Oil Week

Representatives of Pancontinental participated in the Africa Oil Week conference, held in Cape Town 9 to 13 October 2023. While in Cape Town the PEL 87 Joint Venture participants conducted in-person Operating Committee and Technical Advisory Committee meetings with Joint Venture Partners and the MME.

The 'fast tracked' PSDM data provides positive indications for the presence of a mature Kudu Shale oil source formation directly beneath the Saturn Turbidite Complex. The Moosehead-1X well is the only exploration well within PEL 87, having been drilled in 2013 by Brazilian company HRT ParticipacOes em Petroleo. Therefore the well did not encounter any turbidite-related sandstone reservoirs. Moosehead-1X was a dry hole due to the absence of porosity development within the carbonates, although wet gas shows were encountered (increasing in wetness with depth). Importantly for PEL 87 prospectivity, Moosehead-1X did intersect the Kudu Shale; a high quality, thick and regionally extensive oil source rock that is believed to be the primary source for the giant oil discoveries made by TotalEnergies and Shell on-trend to the south. At the Moosehead-1X location, analysis of Kudu Shale samples indicated that the source formation was at an early-mature stage for generation of oil. Based on analysis of the 'fast tracked' 3D PSDM seismic data, Pancontinental's interpretation indicates that the Kudu Oil Shale is likely to be at significantly greater depth within the vicinity of the Saturn Turbidite Complex. The Kudu source formation is therefore likely to be at a more mature level than at Moosehead-1X.

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