Pancontinental Oil & Gas NL (ASX: PCL) is a petroleum (oil and gas) exploration Company based in Perth, Western Australia.
The Company’s focus is on conventional reservoirs in areas where it can create exposure to potentially large resources at a modest entry cost. It is pursuing and has secured projects like this onshore in Australia, the USA (California) and offshore in Africa (Namibia and Kenya).
The onshore projects are mainly targeting gas, near strong markets and with available infrastructure. So the per project cost exposure is modest and there is potential to rapidly transition to reserves and production with any drilling success. The offshore projects are typically more expensive but the Company by being an early-mover on the acreage, then introduces large joint venture partners on a promoted basis to limit its cost exposure. These projects, typified by PEL 37 in Namibia are usually evaluated using 3D seismic, have very large oil potential and tend to take longer to drill and prove commerciality.
The Company has an active, fully funded drill programme secured for late 2017 and 2018 and is well placed to achieve success via the drill bit.
Pancontinental is now recognised for its:
- High impact asset portfolio that offers a balance between large offshore oil exploration projects with funding provided by farmouts and “quick to commercialise”, lower entry cost onshore gas projects
- Early mover advantage; secured acreage prior to areas being recognised as industry hotspots
- Track record of working closely with African governments and local industry
- Strategic negotiation and farmouts; bringing drilling programmes to Pancontinental’s acreage
- Partnering with major global joint ventures for accelerated project activity
- Prudent capital and exploration risk management