TULAINYO- 2 WELL PERMIT TO DRILL ISSUED AND RIG CONTRACTED...

TULAINYO- 2 WELL PERMIT TO DRILL ISSUED AND RIG CONTRACTED
Pancontinental Oil & Gas NL (ASX: PCL) (the “Company”) is pleased to provide an
update on the progress of the Company’s next well in California that is due to spud
in late October. The Tulainyo 2-7 well will appraise a potentially giant-scale,
overpressured gas discovery in similar age rocks to those about to be tested in the
Dempsey-1 well (PCL 10%), also in the Sacramento Gas Basin. The permit to drill
on the lease has now been issued with the process taking under 40 days to achieve.
The Operator has confirmed the Ensign Rig 587 will be used for the drilling operations. The
rig is currently actively working for the Operator. In addition, the necessary surface use
agreement is in place with the landholder.
Pancontinental is earning an effective 13.33% interest in this very large project by
appraising the 2015 Tulainyo-1 gas discovery that could not be tested due to
mechanical difficulties. The Company holds its interest via 40% owned California
subsidiary Gas Fields LLC (“Gas Fields”), also 60% owned by Magnum Gas and Power Limited
(ASX: MPE). Gas Fields has rights to earn on a staged basis, up to 33.33% in the project.
Following contribution of funds by Magnum in accordance with an LOI announced on 5 June
2017, all funds necessary for the drilling of the well have already been advanced to the
operator.
Recoverable Gas Resource Potential Net to PCL
Assumes a net beneficial
position at completion of
farmin earning wells and
unrisked resources per press
release 23 June 2017.
Cautionary statement: The Company confirms that it is not aware of any new information or
data that materially affects the information included in the relevant market announcement
and that all the material assumptions and technical parameters underpinning the estimates
in the relevant market announcement continue to apply and have not materially changed.
For and on behalf of
Pancontinental Oil & Gas NL
John Begg
Executive Director & CEO
Head Office – Level 1, 10 Ord Street, West Perth, Western Australia 6005
Postal Address - PO Box 1154, West Perth, Western Australia 6872
Telephone +61 8 6363 7090 Facsimile +61 8 6363 7099
ACN 003 029 543
www.pancon.com.au
ASX ANNOUNCEMENT
20 SEPTEMBER 2017