elevated gas readings at mbawa

News just out.

Regards,

TCG

PANCONTINENTAL
ASX Companies Announcement Office
3 September 2012
KENYA L8- MBAWA DRILLING UPDATE
Pancontinental Oil & Gas NL (“Pancontinental”) is pleased to advise that the Mbawa well has
reached a depth of 2,553m RT (below the drill floor).
The Mbawa well operator, Apache Corporation, has advised Pancontinental that between the
last casing set at 1997.53m RT and the current depth of 2553m RT elevated mud gas readings
have been seen during some of the drilling. Wireline logs are being run before drilling proceeds
further. The significance of the elevated gas readings will not be known until wireline logs have
been run and an evaluation has been made.
Operations are continuing according to the drilling plan. The secondary exploration target is
deeper than the current drill depth and it is anticipated that this will be penetrated once the
current wireline logs have been run and drilling has recommenced. The planned Total Depth of
the well is 3,275m.
Additional information about Mbawa is available in previous reports issued by Pancontinental
and available on the company’s website www.pancon.com.au
The Kenya L8 Joint Venture consortium consists of-
Apache Corporation (Operator) 50%
Origin Energy Limited 20%
Pancontinental Oil & Gas NL 15%*
Tullow Kenya B.V. 15%
*Pancontinental’s 15% interest is “free-carried” through Mbawa drilling by Tullow Oil plc up to a
“cap” of US$ 9 million (as reduced by other exploration expenditure). After the first earning phase
Tullow has an option to earn a further 5% by providing funding on Pancontinental’s behalf to a
cap of US$ 6 million in any second well.
Pancontinental’s website is www.pancon.com.au/
Yours sincerely for and on behalf of
Pancontinental Oil & Gas NL
Barry Rushworth, CEO and Director
The summary report on the oil and gas projects is based on information compiled by Mr R B Rushworth, BSc,
MAAPG, MPESGB, MPESA, Chief Executive Officer of Pancontinental Oil & Gas NL. Mr Rushworth has the relevant
degree in geology and has been practising petroleum geology for more than 30 years.
Mr Rushworth is a Director of Pancontinental Oil & Gas NL and has consented in writing to the inclusion of the
information stated in the form and context in which it appears.
PANCONTINENTAL OIL & GAS NL
ACN 003 029 543 ASX : PCL
Ground Floor P O Box 8260 Tel: (61 8) 9227 3220
288 Stirling Street, Perth Perth Business Centre Fax: (61 8) 9227 3211
Western Australia 6000 Western Australia 6849 Email: [email protected]
Web: www.pancon.com.au