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Pancontinental has had a long relationship with Namibia and has been present in country for over a decade. The Company believes strongly in the prospectivity of the region and has completed numerous exploration programmes, including the drilling of the Cormorant-1 well in recent years.Exploration activities conducted in the PEL 87 licence have thus far suggested the presence of an active petroleum system. An active petroleum system will exhibit the following characteristics; petroleum source rocks, reservoir rocks, seal and trap. High quality Kudu Shale oil source can be inferred via seismic extension from regional well data including that of the nearby Moosehead-1 well (2013). Saturn is believed to be sealed by slightly overpressured shale and modelling has shown that there is Full Oil Maturity. Depositional characteristics have been used to infer good Reservoir quality.