Earnings release
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ASX Announcement PANCONTINENTAL ENERGY 31 July 2025 JUNE 2025 QUARTERLY ACTIVITY REPORT Pancontinental Energy NL ( ASX: PCL ) (" Pancontinental" or " Company) is pleased to provide its Quarterly Activities Report for the period ended 30 June 2025. Highlights Basin modelling study confirms that Saturn Complex targets are ideally situated to receive direct oil charge from underlying Kudu Shale source kitchen Quantitative Interpretation study indicates good potential for high net-to-gross reservoir system, with fluid substitution modelling indicating the presence of a low gas-oil-ratio (GOR) oil Saturn Complex High Case prospective resources estimate upgraded to 4 Billion barrels of oil (net to Pancontinental, arithmetic sum of High Cases)+ Oryx prospective resources increased to Best Case (2U) 815 MMbbls and High Case (3U) 1.9 Billion bbls (net to PCL) with Geological Chance of Success increased to 26.2% Commenced Environmental Impact Assessment process for exploration drilling approvals Well-funded with quarter-end cash balance of $2.5 mm . In addition post 30 June 2025 option exercise funds of c. $200,000 have been received to date +Cautionary Statement: The potential recoverable oil resources, classified as Prospective Resources, have been estimated deterministically on an unrisked, Best Estimates basis. Please refer to the Company's ASX announcements of 18 March 2025 and 29 July 2025 for full details. Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both a risk of discovery and a risk of development. Further ex ploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially recoverable hydrocarbons. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announ cement 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. PEL 87 Project Status The PEL 87 basin modelling study has now been completed with input from a specialist consultant. The purpose of the study was to analyse the basinal struct ural evolution within the vicinity of PEL 87 to reconstruct the geological/thermal history so that areas of hydrocarbon generation, migration, and accumulation can be predicted. The ubiquitous Barremian-Aptian aged Kudu Shale formation is widely recognised as the primary source of hydrocarbons for the major light oil discoveries to the south of PEL 87. The Kudu formation is proven within PEL 87 at the Moosehead-1X exploration well, which encountered approximately 200 metres of dominantly Type II marine oil shale with Total Organic Content (TOC) of up to 5.5%. The formation has a distinctive seismic character and is readily mappe d across the entire PEL 87 area, with thickness generally between 200 to 300 metres.
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PANCONTINENTAL ENERGY An oil kitchen is interpreted to exist directly b eneath the Saturn Complex and extends eastwards and southwards to the Mopane discoveries (refer Figure 1). At greater depths of burial two discrete gas kitchens are identified, the larger of which sits directly beneath the Kudu Gas Field. 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 only limited vertical and lateral migration required. The mature area directly beneath the Saturn Comp lex is estimated to have generated and expelled approximately 20 Billion barrels of oil, with a significant additional charge contribution expected from the "fetch" area that is situated down-dip to the northeast. Figure 1: Kudu Shale Maturity Map Pancontinental engaged an expert QI specialist to ex amine the Amplitude vs Offset (AVO) anomalies observed within the PEL 87 3D seismic data, and to investigate the rock physics from available regional well data to generate seismic AVO inversion data. That study is now largely complete and provides support for a high net-to-gross reservoir system coin cident with AVO anomalies observed within the Saturn Complex. Analysis of the 3D seismic gathers indicates consistent Class II AVO responses in both upper and lower sequences within the Saturn Complex target intervals, and synthetic modelling of those intervals indicates possible hydrocarbon effects evident in the seismic data, possibly due to the presence of a low gas-oil-ratio (GOR) oil. This is supported by the Basi n Modelling study, which determined an estimated GOR of 200 scf/Bbl for oil generated within the Saturn Complex kitchen. Importantly this is significantly lower than at (for example) TotalEnergies Venus discovery, in which the high level of associated gas presents certain challenges to development. Based upon the results of the QI study, and as announced to ASX on 29 July 2025, Pancontinental has revised its original estimates for Prospective Resour ces and geological risking of the Saturn Complex target inventory. Tables 1 and 2 provide Pancontinent al's revised estimates of Original Oil in Place (OOIP) and Prospective Resources (recoverable) on a 100% gross and 75% net basis, respectively. Also provided for each lead is the revised estimate for Geological Chance of Success (GCoS).
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PANCONTINENTAL ENERGY Please refer to the Company's a nnouncement to ASX of 18 March 2025 for full prospect and lead summaries, which remain largely unchanged with the exception that the Oryx prospect now incorporates the prospective features previously identified as the Calypso and Addax Channel leads, due to the fact that it is determined that all three targets may be effectively tested by a si ngle exploration well. As a result the High Case (3U) prospective resource estimate (gross, 100%) for Oryx now stands at over 2.5 Billion barrels of oil, recoverable, with an estima ted GCoS for the main Oryx prospect now standing at 26.2% (previous estimate 22.5%). Table 1: PEL 87 OOIP and Prospective Resources Estimates (100% gross) Table 2: PEL 87 OOIP and Prospective Resources Estimates (75% net Pancontinental interest) Cautionary Statement : Prospective Resources are the estimate d quantities of petroleum that may potentially be recovered by the application of a fu ture development project related to undiscovered accumulations. These estimates have both an associ ated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are r equired to determine the ex istence of a significant quantity of potentially recoverable hydrocarbons. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announ cement 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. Finally, during the reporting period Pancontinental engaged Namibian consultancy Risk Based Solutions CC to provide support for the Company to prepare its Environmental Impact Assessment for future exploration/appraisal drilling within PEL 87. That process is now underway. Farmout Process The PEL 87 farmout process commenced in late March 2025, with data room sessions running since mid-May 2025 until the present time. Pancontinental continues to engage with all interested parties, in particular via technical updates relating to the QI study that has progressed significantly since the data room was first established (upgrading PEL 87 prospectivity). Orange Basin Update During the reporting period Azule Energy (a BP/ENI join t venture) confirmed a light oil discovery at its Capricornus-1X well, located in Rhino Resources' PEL 85. The Capricornus 1-X well encountered 38 metres of net pay within a Lower Cretaceous target, with no oil water contact observed. The well was successfully production tested, achieving a surface-constrained flow rate of over 11,000 bpd of 37° API oil, with limited associated gas, less than 2% CO 2 and no hydrogen sulphide. The Capricornus-1X result supports an emerging trend wherein both good qualit y sandstone reservoirs and hydrocarbon charge
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PANCONTINENTAL ENERGY are present within an intra-slope setting along a N/S trending fairway inboard of the outer structural high. Importantly the Saturn Complex was deposited within this fairway. Azule Energy is now preparing to drill a further exploration well, at Volans-1X. During the reporting period Galp Energia released det ails of its maiden contingent resource for the Mopane Complex, confirming 3C contingent resources of 875 MMboe. Importantly this figure is based only upon the results of the Mopane-1X and Mopane-2X wells (plus partially the Mopane-1A appraisal well) and as such it can be expected that further revisions for the Mopane Complex will see a significant increase in contingent resources as data from subsequent wells and future drilling are incorporated. Galp Energia continues its divestment process for a 40% interest in PEL 83, having set a bid deadline of 30 June 2025, and has reportedly received a number of non-binding proposals. Galp Energia has stated that it intends to finalise a partnership before end CY 2025. Figure 2: PEL 87 and Neighbouring Activity Elsewhere in the basin TotalEnergies continues to pursue a Final Investment Decision for development of its Venus/Mangetti discoveries and Chevron is be lieved to be planning to drill up to two exploration wells within its PEL 90 permit. Also Kudu gas field operator BW Energy is currently preparing to drill an appraisal well and an exploration well to support development of the approximate 1.5 Tcf Kudu gas field, utilising the Deepsea Mira semi-subm ersible rig once it has completed operati ons at Azule/Rhino's Volans-1X well.
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PANCONTINENTAL ENERGY Corporate Financial The Company had cash and cash equivalents at 30 June 2025 of $2.5 million. Post the reporting period 16,600,000 listed options were exercised, resulting in proceeds to the Company of $199,200. Notes Pertaining to Quarterly Cashflow Report (Appendix 5B) Item 6.1: The aggregate amount of payments to related parties and their associates of $145,000 relates to payments to directors. ASX Listing Rule 5.4.3: Tenement Details In accordance with ASX Listing Rule 5.4.3 the following table details Pancontinental’s interests in its oil and gas permits: Licence Location Licence Reference PCL (consolidated) interest at the beginning of the quarter Movements for the current quarter PCL (consolidated) interest at the end of the quarter Namibia PEL 87 75% 0% 75% Australia ATP 920 **20% 0% *20% Australia ATP 924 - Ace **25% 0% *25% **earning There were no hydrocarbon production and development activities during the quarter. The participants in the PEL 87 Joint Venture are as follows: Pancontinental Orange Pty Ltd (Operator) 75% Custos Investments (Pty) Ltd 15% National Petroleum Corporation of Namibia (NAMCOR) 10% Notes 1. Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) and relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a chance of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially recoverable hydrocarbons. 2. The estimates of Prospective Resources incl uded in this announcement have been prepared in accordance with the definitions and guidelines set forth in the Society of Petroleum Resource Management System (PRMS). 3. The Prospective Resources (Recoverable) included within this announcement have been determined by applying recovery factors ranging between 25% to 30%, reflecting the relatively early stage of exploration and lack of drilling to date within the Saturn Complex. As exploration matures recovery factor estimates have the potential to in crease, typically ranging from 30% to 45% in similar offshore oil fields. 4. The evaluation date for the Prospective Resource s stated within this document is 24 July 2025. 5. Gross Prospective Resources are 100% on-permit volumes estimated to be recoverable from a lead/prospect in the event that a discovery is made and subsequently developed. The estimates of Prospective Resources included in this announcement have been estimated deterministically. 6. The Company has considered the chance of discovering hydrocarbons and has stated the Geological Chance of Success (GCoS) for ea ch prospect and lead to be. The chance of development has not been estimated. Quantifyi ng the chance of development (COD) requires consideration of both economic contingencies and other contingencies, such as legal, regulatory, market access, political, social license, internal and external approvals and commitment to project finance and development timing.
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PANCONTINENTAL ENERGY 7. The volumes reported are "unrisked" in the sens e that the Geological Chance of Success (GCoS) factor has not been applied to the designated volumes. 8. The Prospective Resources included within this announcement have been estimated by Mr. Ric Jason, independent technical consultant to Pancontinental. This information is based on, and fairly represents, information and supporting documentation compiled by Mr Jason, who holds a Bachelor of Applied Geology (Hons) from the University of Technology (Sydney) and has 32 years' experience as a geoscientist within the oil and gas industry. Mr Jason is a member of the Petroleum Exploration Society of Australia, the Americ an Association of Petroleum Geologists and the Southeast Asia Petroleum Exploration Society. Mr Jason has consented to the contents of this announcement being released to ASX in the form and context in which it appears. END This announcement is authorised for release by the Board of Pancontinental Energy NL. PANCONTINENTAL ENERGY NL Vesna Petrovic Company Secretary and Executive Director ASX | PCL 45 Ventnor Avenue West Perth, WA 6005 T: + 61 8 6363 7090 pancon.com.au