Pancontinental Energy (ASX:PCL) Applies to Renew PEL 87 Licence and Commissions Seismic Reprocessing Test in Namibia

Sonal Goyal

27 October 2026 01:02 PM AEDT

Pancontinental Energy (ASX:PCL) Applies to Renew PEL 87 Licence and Commissions Seismic Reprocessing Test in Namibia

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Key Highlights

An application has been submitted to enter the Second Renewal Exploration Period for PEL 87, commencing 23 January 2027.
The application proposes reprocessing about 4,200 km² of 3D seismic data and drilling a firm well within two years.
DUG Technology was awarded a 3D seismic reprocessing test project expected to finish by calendar year-end.
The company continues to talk to groups about partnering to progress exploration.

Pancontinental Energy NL (ASX:PCL) provided an update on 27 October 2026 on its PEL 87 project in the offshore Orange Basin, Namibia, covering a licence renewal application and a seismic reprocessing contract.

Renewal Application to the Ministry

The company’s wholly owned subsidiary, Pancontinental Orange Pty Ltd, as operator for the PEL 87 Joint Venture, submitted an application to Namibia’s Ministry of Industry, Mines and Energy to enter the Second Renewal Exploration Period, starting 23 January 2027. The application proposes reprocessing about 4,200 km² of the 3D seismic data and drilling a firm well within the two-year period.

Pancontinental will update the market after discussions with the Ministry and a decision by the Minister. In the meantime it continues to engage with a number of groups regarding partnering to progress exploration within the licence.

Seismic Reprocessing Contract

Pancontinental awarded a contract to DUG Technology for a 3D seismic reprocessing project designed to test a way of enhancing the data for quantitative interpretation. DUG was selected from several proposals because of its technical insights and the efficiency of its workflow in time and cost.

The primary aim is to reduce high-energy multiples in pre-migration gather data near the PEL 87 prospects and then re-migrate the data to address an amplitude attenuation effect seen in the far and ultrafar offset data. The project is expected to finish by the end of the calendar year, and its results will inform the broader reprocessing project targeted to begin early next year.

The PEL 87 Licence and Why This Could Matter

PEL 87 covers 10,970 km² of the offshore Orange Basin in southern Namibia, on trend with a number of significant hydrocarbon discoveries. It was awarded to a joint venture led by Pancontinental in early 2018 for up to three terms over eight years, and the participants are Pancontinental Orange Pty Ltd with 75%, Custos Investments with 15% and NAMCOR with 10%.

The renewal application has not yet been decided, and the commitment to drill a firm well is part of the proposal. The reprocessing test will show whether the data quality can be improved before the wider reprocessing begins.

Closing View

Pancontinental has applied to continue the PEL 87 licence into a further exploration period and commissioned a reprocessing test. The Minister’s decision and the outcome of partnering discussions are still to be reported.

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