The asset sale provided a substantial cash injection and enabled the oil exploration company to secure new exploration acreage.
During 2018 the company raised $2 million through placements and $1.6 million through the issue of convertible notes.
This is in addition to about $10 million brought to the company’s coffers through the sale of the interest in Pancontinental Namibia Pty Ltd.
In his address at the company’s annual general meeting, Pancontinental chairman Henry David Kennedy said the best potential value-producing activity in 2018 was at the Cormorant-1 well offshore from Namibia.
Kennedy said: “This was a project that Pancontinental generated in 2012.
“The project did provide the company with approximately $10 million by the partial sale of the subsidiary which holds the petroleum exploration licence (PEL) 37 asset.
“The drilling results are now being analysed and they are providing valuable information for future exploration in the licence.”
Perth project retained
The company has also divested all of its US interests, including subsidiary Bombora Natural Energy which it acquired in July last year.
However, the Walyering Gas Project in the Perth basin was retained from the Bombora assets.
Pancontinental is currently earning a 70% interest and operatorship of Walyering and an application to conduct 3D seismic acquisition is in the process of being approved.
“Returning to its roots”
Kennedy continued: “Pancontinental is returning to its roots of investing in frontier, underexplored areas as operator.
“As such, it applied for additional acreage offshore Namibia this year and was successful in securing a major new property amid international competition.
“The new licence, PEL 87, is in the Orange basin which is some distance south of our PEL 37 licence area in the Walvis basin.
“This region is a real hotspot, with Shell, Total, and others drilling very similar prospects on-trend in the next two years."