been sold down today ....thank youhere's the...

been sold down today ....thank you

here's the latest

cheers

PANCONTINENTAL OIL & GAS NL 2002-08-26 ASX-SIGNAL-G

HOMEX - Perth

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AWARD OF PETROLEUM EXPLORATION LICENCES L6, L8, AND L9 OFFSHORE KENYA
TO PANCONTINENTAL OIL & GAS NL AND AFREX LIMITED

Pancontinental Oil & Gas (Pancontinental) advises that on 23 August
Directors and representatives of Pancontinental, Afrex Limited
(Afrex), and the Kenyan Minister for Energy, the Honourable Raila A.
0dinga, executed Agreements giving Pancontinental and Afrex exclusive
rights to explore for and produce petroleum from 3 offshore areas
designated L6, L8 and L9.

Under the joint venture Pancontinental holds a 40% contributing
interest, and Afrex, the operator, 60%. Afrex is an overseas company
of which Mr H D Kennedy, Chairman of Pancontinental, is a director.

The total areas of the 3 blocks is 21,400 square kilometres
(5,288,000 acres) and span a large part of Kenya's coastline and
near-shore to offshore territorial waters, immediately north of the
main port of Mombassa. The majority of the permits are in shallow
water depths, with some most easterly areas reaching 1000 meters.

Under the agreements during the first exploration period of two years
(L6 and L8) and one year (L9) Pancontinental and Afrex plan to carry
out extensive re-interpretation and re-mapping of existing data and
carry out a new seismic survey of a minimum of 600 line kilometres.

During the second exploration phase of 3 years (L6 and L8) and 4
years (L9), Pancontinental and Afrex have conditionally agreed to
drill up to 2 exploration wells and carry out a further seismic
survey of 300 km.

During the third exploration phase of 4 years the companies have
conditionally agreed to drill up to 12 exploration wells.

The principal geological plays include large Tertiary delta complex,
similar to the North West Shelf, and other continental margins
sedimentary basins that host extensive petroleum reserves. Other
potentially productive geological plays include large Tertiary age
limestone reef complexes, and an older Jurassic age sequence. Mapping
of existing seismic data has already shown the existence of a number
of very large structures in the 3 areas capable of containing
commercial reserves. Shows of oil and gas have been reported in some
of the (few) existing wells in the basin.

These strata appear to have all the components necessary to host
significant hydrocarbon discoveries, similar to the major offshore
Songa-Songa gas field discovery in neighbouring Tanzania. Songa-Songa
is now under development, including the building of pipelines and
power generation infrastructure. This project will be the first to
provide an indigenous energy source for East Africa's otherwise
totally import dependent power generation, industrial, transport and
domestic petroleum requirements.

Pancontinental and Afrex directors believe that this is an exciting
step into a large part of a prospective and yet poorly explored
region.

The Boards of Pancontinental and Afrex are very pleased that the
Kenyan project call now be added to the offshore Malta project which
was awarded in mid 2001, and is the first African project announced
by the joint venture. Within the Malta permits, reefal features are
similar to those in adjoining Tunisian and Libyan permits where they
host major oil and gas accumulations. These include the Tunisian
Ashtart oilfield, which has reported reserves of 350 million barrels
of oil, and the Libyan Bouri oil and gas field, which is reported to
contain reserves in excess of a billion barrels of oil and a trillion
cubic feet of gas.