Pancontinental Oil & Gas NL : Cormorant-1 Exploration Well in PEL 37 Offsh Namibia Result

Cormorant-1 Exploration well in PEL 37 Offshore Namibia Result

•  Target Submarine Fan sequence thicker than expected intersected close to predicted depth

•  Well at Total Depth (TD) and preparing for abandonment

•  No accumulated hydrocarbons

•  Gas shows indicate an active source system

•  Further significant potential for the play

Pancontinental Oil and Gas NL (ASX: PCL, "Pancontinental") advises that the Cormorant-1 exploration well in PEL 37 offshore Namibia has reached a total measured depth of 3,855m and is to be plugged and abandoned as a dry hole.

The well has been efficiently drilled by operator Tullow Oil, reaching total depth on 21 September 2018, materially quicker than prognosed.

The Early Cretaceous age Cormorant Submarine Fan target was encountered close to the predicted depth but no accumulated hydrocarbons were found. The Fan contained approximately 50m thickness of interbedded sands and claystones that were water-wet. Wet gas signatures, indicative of oil, were first encountered in the overlying shale section and persisted throughout the target interval, indicating that there has been significant hydrocarbon generation in the area. Important geological data has been gained from this well, providing valuable insights into the prospectivity of the Aptian-Cenomanian turbidite fans that are still valid exploration plays with very large oil resource potential in Pancontinental's acreage both in PEL 37 and, further south, in PEL 87 (Pancontinental 75%).

Cormorant-1 is the first modern well to penetrate this stratigraphic section in PEL 37, (covering some 17,000Km2), and the Joint Venture is in the early stages of analysing the results. The analysis will assist the geological understanding, and the associated discovery probability, of other prospects and leads in PEL 37, some of which have significantly larger resource potential than Cormorant.

The well data supports the presence of at least one active source rock system, with encouraging implications for the range of play types mapped in the block, and in PEL 87.

Pancontinental Oil & Gas NL owns two thirds of Pancontinental Namibia Pty Ltd, which holds a 30% participating interest in PEL 37, giving it a 20% effective interest in PEL 37.

The participants in Cormorant-1 are-

Tullow Namibia Limited (Operator)	35.00%
Pancontinental Namibia Pty Ltd	30.00% *
ONGC Videsh Limited	30.00%
Paragon Oil & Gas (Pty) Ltd	5.00%
* Ownership of Pancontinental Namibia Pty Ltd:
Pancontinental Oil & Gas NL 66.67%
Africa Energy Corp. 33.33%

For and on behalf of Pancontinental Oil & Gas NL John Begg

CEO and Executive Director

Head Office - Level 1, 10 Ord Street, West Perth, Western Australia 6005

Postal Address - PO Box 1154, West Perth, Western Australia 6872

Telephone [phone] Facsimile [phone]

ACN 003 029 543www.pancon.com.au