Rig contract executed to drill the Cormorant Prospect offshore Namibia, with a target spud date of 1 September, 2018.
Pancontinental has an effective 20% interest in the project and will not incur any drilling costs.
Pancontinental will also receive circa A$7 million upon spud of the Cormorant well.
Pancontinental estimates that Cormorant has the potential to contain Prospective Resources of 124 MMbbl of recoverable oil on an un-risked Best Estimate basis. The cumulative Best Estimate oil resource potential of the leading four mapped prospects in the block total 915 MMbbl recoverable oil.
ExxonMobil recently entered the block directly south of PEL 37 validating Pancontinental’s belief in the large scale prospectivity for oil offshore Namibia. 

Ocean Rig Poseidon (image source: Ocean Rig)

Pancontinental Oil & Gas NL announces that the PEL 37 Joint Venture has contracted the Ocean Rig Poseidon to drill the Cormorant-1 exploration well located offshore Namibia.

In order to drill the well the Joint Venture was required to apply to the Ministry of Mines and Energy in Namibia for permission to enter the next phase of the licence, the Second Renewal Exploration Period. Permission has been granted and drilling preparations are well underway. 

Pursuant to the farmout by Pancontinental to operator Tullow Oil in 2013, the Company will now be fully carried through the cost of drilling the Cormorant-1 well. The Company holds its interest via its 66.7% owned subsidiary Pancontinental Namibia ('PCN') that has a 30% interest in PEL 37. The Company will also be paid at spud of the well circa A$7 million by Africa Energy Corp as completion of its acquisition of a 33.3% interest in PCN. 

Additionally, oil major ExxonMobil recently announced its farmin into PEL 82 (adjacent to PCL’s PEL 37) for a 40% interest. This validates Pancontinental’s belief in the prospectivity and potential large size of oil resource targets in the area. The PEL 37 JV has also been strengthened by the entry in the past 6 months of Africa Energy Corp. (via its 33.3% holding in Pancontinental Namibia Pty Ltd) and giant Indian oil and gas company ONGC Videsh Limited.
 
Commenting on the execution of the rig contract, Pancontinental CEO John Begg said:
"This is a significant and very satisfying milestone for Pancontinental. First the joint venture unanimously selected the Cormorant Oil Prospect to drill, then the Namibian Government approved the programme and now a high technology drill ship has been contracted for the job. Roll on September."

Ocean Rig Poseidon

• 6th Generation Deep Water Drillship. Enhanced SAIPEM 10000 Design
• Ocean Rig Poseidon was completed in 2011. The rig was built at Samsung Heavy Industries Shipyard in South Korea.
• The rig has dual activity capabilities, design and equipped for drilling operations in water depths from 500 meters (1640 feet) to 3000 meters (10000 feet).  
• Ocean Rig Poseidon has operated successfully in benign areas. 
• The rig is Dynamic Positioned, DP Class 3