Pancontinental Energy has secured a 12-month extension for its offshore exploration permit in Namibia, as it works to revive momentum on a project seen as part of the country’s emerging energy frontier.
The extension covers Petroleum Exploration Licence 87 (PEL 87), a 10,970 square kilometre block located in the Orange Basin, and will remain valid until January 2027. The company announced the development in a filing to the Australian Securities Exchange on March 18.
Pancontinental holds a 75 percent stake in the licence, alongside local partners Custos Investments with 15 percent and NAMCOR with 10 percent.
Under the terms of the extension, the company is required to advance key technical and regulatory work, including completing an environmental impact assessment, reprocessing and interpreting existing 3D seismic data, and drilling an exploration well. These steps are critical to determining the commercial viability of the block.
Chief Executive Iain Smith said the extension provides additional time for the company to secure a strategic partner and move the project toward drilling.
“This decision allows the company to focus on finding a partner to conclude a farm-in agreement and advance the project as quickly as possible,” he said.
Attracting an investor remains central to Pancontinental’s strategy. Previous efforts to secure a partner have so far been unsuccessful, highlighting the challenges smaller exploration firms face in financing high-risk offshore projects.
Talks with Woodside Energy, which had been expected to acquire up to a 56 percent stake in the licence, collapsed in March 2025, leaving Pancontinental to reassess its approach. No new industrial partner has been announced since.
The extension comes at a time of growing interest in Namibia’s offshore oil and gas potential, particularly in the Orange Basin, where recent discoveries by major energy companies have drawn global attention. Analysts say the region could become a significant new hydrocarbon province if exploration success continues.
For Namibia, the development of offshore resources is seen as a potential driver of economic growth, investment and government revenue. However, progress depends on continued exploration, regulatory approvals and the ability of companies to secure financing and technical partners.
Pancontinental’s next steps will be closely watched by industry observers, as the company works to de-risk the project and position PEL 87 for potential development.
