Highlights

  • Pancontinental continued progressing the PEL 87 farmin process with interested groups.
  • Seismic reprocessing feasibility studies are underway for the PEL 87 licence.
  • Orange Basin exploration activity continued with new discoveries and appraisal success nearby.
  • The Company ended the June quarter with cash and cash equivalents of $2.4 million.
  • A New Zealand offshore permit application entered the competitive assessment stage.

Pancontinental Energy NL (ASX:PCL) has outlined continued progress across its Namibian exploration portfolio, with work advancing on the PEL 87 project, ongoing engagement with potential farmin partners and preparations for seismic reprocessing. The Company's June 2026 Quarterly Activities Report also highlighted continued exploration success across the wider Orange Basin and provided updates on its offshore New Zealand exploration application.

During the morning session on 14 July 2026, Pancontinental Energy shares were trading at AUD 0.0090, down 10.00% for the day. Over the past year, the stock has declined 28.33%, as investors continue to monitor developments across the Company's exploration assets in Namibia, Australia and New Zealand.

Pancontinental Energy is an oil and gas exploration company focused on frontier offshore basins with interests in Namibia, Australia and New Zealand. Its flagship asset is the PEL 87 petroleum exploration licence located within Namibia's Orange Basin, where the Company holds a 75% operating interest through its wholly owned subsidiary Pancontinental Orange Pty Ltd. The Company also maintains exploration interests in Queensland and has applied for a petroleum prospecting permit in New Zealand's offshore Taranaki Basin.

PEL 87 Extension Moves Towards Formal Completion

One of the key developments during the quarter was continued progress on the Company's PEL 87 exploration licence in Namibia.

Earlier this year, Pancontinental announced that the Namibian Ministry of Industry, Mines and Energy (MIME) approved a 12-month extension of the First Renewal Exploration Period through to 22 January 2027. During the latest quarter, the Company received further feedback confirming that the draft Deed of Amendment submitted for the Petroleum Agreement was acceptable, allowing both parties to move towards formal execution of the agreement.

As part of the extension conditions, Pancontinental is required to undertake reprocessing of existing 3D seismic data before progressing future exploration activities.

Seismic Reprocessing Study Underway

To satisfy the licence requirements and improve geological interpretation, Pancontinental has commenced a seismic reprocessing feasibility study.

The Company is assessing various post-stack and pre-stack seismic processing techniques to determine the most effective approach. Qualified processing groups have been invited to submit proposals that include test processing of a selected portion of the existing 3D seismic dataset.

According to the Company, the objective is to evaluate potential improvements in data quality while comparing costs and processing timeframes before selecting the preferred methodology.

The outcomes of the study are expected to guide future exploration planning across the PEL 87 licence.

Farmin Discussions Continue

Pancontinental confirmed that discussions with potential farmin participants remain active.

The Company stated that several groups continue evaluating the PEL 87 opportunity. However, due to the confidential nature of commercial negotiations, it has not disclosed either the identity or the number of interested parties.

Management reiterated that once a farmin agreement is secured, it intends to engage jointly with Namibia's Ministry of Industry, Mines and Energy to discuss scheduling and logistical requirements for the remaining exploration work programme.

A key commitment under that programme is the drilling of an exploration well.

Orange Basin Exploration Activity Continues

The quarterly report also highlighted exploration developments across neighbouring permits in Namibia's Orange Basin, where drilling activity continued during the reporting period.

Shell completed drilling of the Merlin-1X exploration well in PEL 39 using the Deepsea Mira drilling rig, resulting in a light oil discovery with associated gas within the Upper Cretaceous Coniacian sequence. According to the Company, Shell described the well as delivering its most promising subsurface results to date, indicating favourable reservoir quality with light oil and limited associated gas. Before releasing the drilling rig, the well was side-tracked to obtain additional appraisal information.

Further south, the Rhino Resources and Azule Energy Joint Venture completed the Capricornus-1A appraisal well within PEL 85. The well reached a total depth of 4,818 metres and intersected 46 metres of gross hydrocarbon pay. The appraisal confirmed pressure communication with the earlier Capricornus-1X discovery, supporting reservoir continuity across the accumulation.

The PEL 85 Joint Venture is also preparing an extensive 3D seismic programme covering approximately 8,633 square kilometres. Up to eight seismic campaigns are planned between late 2026 and 2030, with each campaign expected to last as long as two and a half months.

Elsewhere within the basin, GalpEnergies continues preparations to drill three exploration and appraisal wells at the Mopane discovery during the second half of calendar year 2026. These wells will initially be drilled by GalpEnergies before TotalEnergies assumes operatorship following regulatory approval under its agreement to acquire a 40% working interest in PEL 83.

The report also noted that TotalEnergies continues progressing towards a Final Investment Decision for the Venus development within PEL 56. Subject to achieving approval before the end of 2026, the development aims for first oil production in 2030 through a Floating Production Storage and Offloading (FPSO) facility designed to produce 160,000 barrels of oil per day, store up to 2 million barrels of crude oil and process 550 million cubic feet of gas daily.

Chevron is also preparing to drill its Nabba-1X exploration well in PEL 90 during the fourth quarter of 2026.

New Zealand Exploration Opportunity Advances

Outside Namibia, Pancontinental reported progress on its offshore New Zealand initiative.

The Company's wholly owned subsidiary, Taranaki Energy Pty Ltd, has had its petroleum prospecting permit application accepted by New Zealand Petroleum and Minerals, triggering a three-month competitive assessment period.

The proposed permit covers approximately 9,972.5 square kilometres within the offshore Taranaki Basin.

The proposed initial two-year work programme includes reprocessing and interpretation of existing 2D seismic data, basin modelling and identification of prospective exploration targets to support future investment decisions.

The Company noted that there is currently no certainty that the application will ultimately result in the granting of a petroleum prospecting permit.

Financial Position Remains Stable

Pancontinental reported cash and cash equivalents of $2.4 million as at 30 June 2026.

According to the accompanying Appendix 5B, payments totalling $152,000 to related parties during the quarter related to directors' remuneration.

The Company also confirmed there were no hydrocarbon production or development activities undertaken during the reporting period.

Pancontinental's interest in PEL 87 remained unchanged at 75% throughout the quarter. The remaining participants include Custos Investments with a 15% interest and the National Petroleum Corporation of Namibia (NAMCOR) with a 10% interest.

The Company's interests in ATP 920 and ATP 924 Ace in Australia also remained unchanged during the quarter.

What Could Investors Watch Going Forward?

Pancontinental's latest quarterly update highlighted continued progress across its PEL 87 project through seismic planning, ongoing farmin discussions and advancement of regulatory processes. The report also reflected continued exploration activity across Namibia's Orange Basin and progress on the Company's offshore New Zealand application. Going forward, market attention is likely to remain on completion of the seismic reprocessing study, developments relating to a potential farmin partner, regulatory milestones and future exploration planning at PEL 87.