New studies enhance outlook for Orange Basin exploration block

July 2, 2025, by Dragana Nikše

Australia-based petroleum exploration company Pancontinental Energy has revealed the results of two studies exploring hydrocarbon properties of a petroleum exploration license (PEL) it operates in the Orange Basin, offshore Namibia.

PEL 87 location map; Source: Pancontinental

The Australian player said the new evidence provides increased confidence for the presence of a high net-to-gross reservoir system and the presence of hydrocarbons within PEL 87.

Pancontinental Energy’s Chief Executive Officer (CEO), Iain Smith, said: “We are pleased to have progressed these two key studies, which confirm that the Saturn Complex is particularly well placed to receive oil charge into reservoir systems that exhibit potential for high net-to-gross sandstone units and good indications for the presence of hydrocarbons. Additional QI screening studies are being progressed, as are revisions to Pancontinental’s estimates of prospective resources and geological risking, targeting late July.”

The Australian player has completed a basin modelling study, the purpose of which was to analyze the formation and structural evolution of the Orange Basin close to PEL 87 and predict the location where hydrocarbons are found.

According to the study, the ubiquitous Barremian-Aptian aged Kudu Shale formation is widely recognized as the primary source of hydrocarbons for the major light oil discoveries to the south of PEL 87.

The Kudu formation has been proven at the Moosehead-1X exploration well, which encountered approximately 200 meters of dominantly Type II marine oil shale. As explained, the formation has a distinctive seismic character and is readily mapped across the entire PEL 87 area, with a thickness generally between 200 to 300 metres.

While the Kudu Shale was found to be early-mature for oil generation at the structurally high Moosehead-1X location, an oil kitchen was found to exist directly beneath the Saturn Complex, extending toward Galp’s Mopane discoveries.

Another oil & gas discovery for Galp in Namibia’s Orange Basin

Exploration & Production

Furthermore, two discrete gas kitchens were identified at greater depths of burial, the larger of which sits directly beneath the Kudu gas field, where BW Energy intends to drill the Kharas prospect soon. According to Pancontinental, the proximity of the Saturn Complex targets to the underlying oil kitchen places the Saturn exploration targets in an excellent position to receive hydrocarbon charge, with limited vertical and relatively short-distance lateral migration required.

The mature area directly beneath the Saturn Complex is estimated to have produced approximately 20 billion barrels of oil, which is said to be sufficient to charge the full Saturn prospect/lead inventory up to the high case.

The gas kitchen situated to the northeast of the Saturn Complex is likely to contribute gas to the petroleum system. That being said, the associated gas content within the Saturn Complex prospects/leads is predicted to be significantly lower than comparable nearby discoveries, for example, TotalEnergies’ Venus.

In addition to this, a specialist was hired to examine the amplitude vs. anomaly (AVO) effects observed within the PEL 87 3D seismic data. Based on this, possible hydrocarbon effects are evident in the seismic data. Furthermore, the PaleoScan data are said to provide direct support for the interpretation that the Oryx prospect is positioned within the axis of deposition for the Saturn Complex turbidite deposits.

Covering an area of 10,970 square kilometers, PEL87 is located offshore southern Namibia. The license was awarded to a joint venture led by Pancontinental in early 2018 for up to three terms over eight years (plus subsequent extensions) and may be converted to a production license under pre-agreed terms.

The participants in the PEL 87 Joint Venture are the Australian firm’s Namibian subsidiary, Pancontinental Orange, which is the operator with a 75% interest, Custos Investments (15%), and National Petroleum Corporation of Namibia (NAMCOR), which holds 10%.

In March, Pancontinental was looking for a new partner to secure the required funds for exploration drilling at the license after its compatriot Woodside decided not to farm into the PEL 87 project.