Australia’s Pancontinental has signed an agreement with the Ministry of Mines and Energy of Namibia for the operatorship of an offshore block in the country.
Block 2713 covers an exploration area of 10,947 km² in the Orange Basin offshore Namibia. Water depths are between 500 meters and 3,200 meters.
Pancontinental will become the project operator of the block with a 75 per cent interest with an initial period of four years.
Pancontinental CEO John Begg said: "We are delighted that the Ministry has granted Pancontinental this new area. We believe that offshore Namibia is one of a select few areas around the world with the potential for large oil discoveries in modest to deep water that can be profitable at prevailing oil prices, and highly profitable at better prices."
The agreement is subject to standard fiscal terms in Namibia.
He added: "Our mapping already shows leads in play trends with very large oil volume potential. So we have taken a majority, 75 per cent operated position in the new project with cost exposure within our capabilities. Further, we plan to apply our proven skills to bring the oil potential of this project into an up-to-date context that is attractive to wider industry investment."
The new licence complements Pancontinental's existing strong position in PEL 37 in Namibia that is operated by Tullow Oil and where ONGC Videsh and African Energy Corp have also recently invested. The PEL 37 joint venture has committed to drill a well in PEL 37 in the 3rd quarter next year.