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Initial interpretation of 3D seismic data and Galp's recent Orange basin discoveries boost prospectivity of PanContinental asset.
"Woodside Energy’s decision a year ago to secure a farm-in option over a promising exploration block in Namibia’s Orange basin is looking very astute based on the latest findings from a 3D seismic survey shot over the deepwater tract.
Last March, the Australian major struck a deal that gives it an option to take a 56% interest in Petroleum Exploration Licence 87, which is operated by PanContinental Energy, an Australia-listed minnow whose shares currently languish at A$0.02, or just over one US cent.
This block was already in a well-regarded exploration zip code, but since that deal was agreed, significant oil discoveries made this year by Galp Energia in the block immediately to the south and processed data from the 3D shoot, have made it an even more desirable address.
Woodside can secure a stake in PEL 87 — which covers Block 2713 — in return for, among other things, paying the full cost of the 5600 square kilometre 3D seismic survey that was completed last May.
Once it has received the remaining seismic products and secures a seismic licence, the Australian major has up to 180 days to exercise this option.
In late January, Woodside and PanContinental received final post-stack depth migration (PSDM) products from the shoot which are now being interpreted to initially assess the block’s key geological plays, before a deep dive into individual prospects.
Iain Smith, board advisor to PanContinental, told investors today that Galp’s discoveries combined with results from the 3D survey leave the company “sitting pretty” in block 2713.
Before the new 3D seismic data was acquired, the exploration target PanContinental had always highlighted was Saturn.
But that has all changed, with Smith now talking about prospectivity “across variety of formations and ages, not just Saturn; we’re very pleased with what we’ve seen so far. “We’re extremely encouraged by the prospectivity”.
He explained that the interpretation process for such as large survey is labour-intensive and takes time to get right.
“We’re not simply looking for structures. We’re looking for quite subtle features and not just structures,” he said, adding that the interpretation teams will be looking for amplitude-versus-offset anomalies as well as direct hydrocarbon indicators.
Smith said seven Cretaceous play concepts have been identified to date — in a variety of structural, stratigraphic and combination trapping styles — with additional non-Cretaceous plays, including Tertiary, under evaluation.
What are known as seismic “bright” spots — widely regarded as potential hydrocarbon indicators — have also been mapped.
The 180-day clock has yet to start ticking on Woodside option, and will only be triggered when it receives all seismic products and it secures the seismic licence.
Woodside’s global new ventures team in Houston is evaluating the seismic data."
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