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PCL - Pancontinental Energy

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ASX ANNOUNCEMENT
4 DECEMBER 2015

Pancontinental to raise $2.2 million

Pancontinental Oil & Gas NL (“Pancontinental”, “the Company”) (ASX Code:pCL) is pleased to advise that it has completed a bookbuild for a placement to sophisticated and professional investors to raise up to $1.2 million through the issue of up to 300 million fully paid ordinary shares in the Company (“Shares”) at an issue price of 0.4 cents per Share (“the Placement”).

In addition to the Placement, the Board of Pancontinental has also resolved to offer eligible shareholders the opportunity to participate in a Share Purchase Plan (“SPP”) to raise up to $1 million (see Share Purchase Plan Details below).

Funds raised pursuant to the Placement will be used in conjunction with existing cash, for costs associated with the potential sale of a part interest in Namibia EL0037, other farm out costs, business development and for general working capital purposes and other payables (circa A$400,000 to BG Group).

Commenting on the Placement, Pancontinental CEO Barry Rushworth stated: “The key focus for Pancontinental at the current time is our Offshore Namibian Project – EL0037. Successful 3D and 2D seismic programmes have recently been completed and processed at a cost to farminee Tullow Oil in excess of US$30 million.” “Tullow Oil is itself negotiating with a potential farminee for drilling in EL0037 and by end-March 2016 Tullow Oil needs to exercise its option to drill, following which Pancontinental would be free carried on a well with no caps.”

“Given the quality and the value of the exploration undertaken to date and the considerable potential for oil in a number of prospects, Pancontinental is confident a decision to drill will be forthcoming and this will be of considerable value to PCL’s healthy free carried 30% position in EL0037”.

“Pancontinental is also seeking to farm down part of its 30% interest for cash. The current Placement and SPP strengthens Pancontinental’s position as we embark on a very important few months for the Company.” Hartleys Limited acted as Broker to the Offer in respect of the Placement and SPP.

Settlement of the placement for up to 177.5 million Shares is scheduled for Friday, 11 December 2015 and is not subject to shareholder approval. This part of the Placement falls within the Company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A.

Subject to shareholder approval, Directors of Pancontinental have committed to subscribe for $500,000 in the Placement. The Company anticipates that it will seek such shareholder approval at a general meeting in early January 2016.

Share Purchase Plan Details

In order to provide all eligible Shareholders of the Company with the ability to participate in this capital raising, the Company is undertaking a Share Purchase Plan (“SPP”) to raise up to $1 million, with the company reserving the right to raise more than this amount. The SPP will enable eligible shareholders, irrespective of the number of Shares
which they hold in the Company, to purchase up to $15,000 worth of new Shares directly from the Company.
The Company proceeding with the SPP is conditional upon the ASX granting a waiver (which the Company expects will be forthcoming) from the operation of Listing Rules 7.1 and 10.11 so that the issue price of Shares under the SPP can
be at the same price as the Placement (being 0.4 cents per Share).

If the ASX waiver is not granted, the Company reserves the right not to proceed with the SPP or to proceed with it on amended terms. The Company will inform shareholders of the outcome of the waiver application and the status of the SPP in due course.

ABOUT PANCONTINENTAL

Pancontinental Oil & Gas is listed on the Australian Securities Exchange (ASX:pCL).Offshore Namibia, Pancontinental has a free-carried 30% interest in Petroleum Exploration Licence 37. The Operator has conducted 2D and 3D seismic surveys and is interpreting the results to decide on a well. A number of high-potential Prospects have been mapped from 3D data. In March 2016 at the latest, the joint venture will know whether or not drilling will proceed within the permit. With less than six months to wait Pancontinental expects a positive outcome for the future exploration potential in the licence.

Should the well proceed Pancontinental will be free carried with no cap. In Kenya, Pancontinental has a 40% interest in the offshore portion of Licence L6 and a 16% free carried interest in the onshore portion of Block L6. Visit Pancontinental’s website for further information at www.pancon.com.au

Yours sincerely for and on behalf of Pancontinental Oil & Gas NL
Barry Rushworth,
CEO and Director
 
DISCLOSURE UNDER ASX LISTING RULE 3.10.5A

Further to the announcement dated 4 December 2015, relating to the Placement of fully paid ordinary shares in Pancontinental Oil & Gas NL (“Pancontinental” or the “Company”), the Company has to date raised $738,000 by the issue of 184,500,000 ordinary shares.

Details of issue under the 10% Placement Facility in Listing Rule 7.1A
(a) Details of the dilution to existing holders of ordinary shares as a result of the issue:

Number of Shares on issue prior to the Placement 1,150,994,096
Placement issue under Listing Rule 7.1 172,649,114 12.93%
Placement issue under Listing Rule 7.1A 11,850,886 0.89%
Number of Shares on issue following the Placement 1,335,494,096

In relation to the portion of shares issued under Listing Rule 7.1A, the percentage of the post-placement capital held (in aggregate) is as follows:

● Pre-placement security holders who did not participate in the placement – 100%;
● Pre-placement security holders who did participate in the placement – 0%; and ●
Participants in the placement who were not previously security holders – 100%.

(b) The 11,850,886 shares issued under Listing Rule 7.1A were issued to sophisticated and professional investors.

In addition, the Board of Pancontinental has also resolved to offer eligible shareholders the opportunity to participate in a Share Purchase Plan (“SPP”) to raise up to $1 million. The Company proceeding with the SPP is conditional upon the ASX granting a waiver (which the Company expects will be forthcoming) from the operation of Listing Rules 7.1 and 10.11 so that the issue price of Shares under the SPP can be at the same price as the
Placement (being 0.4 cents per Share).

The above mechanisms were considered to be the most efficient for raising funds at the time.

(c) There were no underwriting arrangements in place for the Placement.

(d) Fees and costs incurred in connection with the issue include share registry and ASX costs as well as a 6%
commission to Hartleys Limited.

For and on behalf of Pancontinental Oil & Gas NL

V Petrovic
Company Secretary
 
Notice of General Meeting
9.30am (AWST), Monday, 25 January 2016
The Park Business Centre
45 Ventnor Avenue West Perth, Western Australia 6005

Share Purchase Plan Offer
The Offer closes at 5:00pm (AWST) on
22 January 2016.

See Latest News at;
http://pancon.com.au/
 
Kenya’s Block L6 operator Australia’s Far has said it issued a default notice to it’s partner in the L6 Joint Venture Pancontinental Oil and Gas

February 1, 2016

Kenya’s Block L6 operator Australia’s Far has said it issued a default notice to it’s partner in the L6 Joint Venture (Pancontinental Oil and Gas) for continued failure to pay two cash calls from 12 Feb 2015 although the latter has disputed the notices in a new statement.

“Under the terms of the Joint Operating Agreement, FAR has issued a default notice to it’s partner in the L6 Joint Venture (Pancontinental Oil and Gas) for continued failure to pay two cash calls from 12 Feb 2015,” Far told investors in its latest quarterly activities report.

Responding to a statement FAR issued to its shareholders PanContinental Oil and Gas alleges the joint venture had only planned work to be undertaken on block L6 onshore of which civil upheaval and security incidents prevented any appropriate access for petroleum operations to be conducted.

PanContinental Oil and Gas adds that there is still no access to that portion and therefore no work is capable of being carried out on that portion of block L6 and hence there remains no need for the cash call.

PanContinental is also outranged by the default notice claiming that the operator had told the joint venture the majority of the $377, 801 funds to be raised were to be used by FAR’s subsidiary Flow Energy Pty Ltd staff and consultants.

The partner also has an issue with the calculations in which PanContinental claims should the cash calls have been valid share of the 2015 Cash Calls should be US$60,448 based on a 16% share of the “onshore” portion of block L6; not US$113,060 (based on a claimed 40% interest) as claimed by Flow.

“The 2015 Cash Calls issued to Pancontinental were on the basis that Pancontinental’s paying interest was 40%; not 16% without an explanation concerning the status of Milio. No work has been authorised by the joint venture to be carried out on the so called “offshore” portion of block L6 in which Pancontinental does have a 40% paying interest,” Pancontinental Oil and Gas CEO and Executive Director Barry Rushworth said in a statement.

The company also claims to have already honored paid US$38,060 (representing a share of fees payable to the Kenyan Ministry which Pancontinental was prepared to pay), thus leaving an amount purportedly owing of US$22,388 (which Pancontinental also disputes).

By letters dated 9 September 2015 Pancontinental wrote to Flow disputing the 2015 Cash Calls as well as the validity of the default notice and calling on Flow to provide it with relevant information.

According to PanContinental FAR is yet to provide a written response to those letters.

Meanwhile the operator says it continued discussions with the Government of Kenya to secure a one year extension to the current Petroleum Sharing Contract to allow exploration activity that has been hindered by recent tensions on ground, to commence. FAR is planning for a 2D seismic survey to commence as soon as possible.

In Block L6 FAR has 24% paying interest, PanContinental 16% and Milio International 60%. Offshore FAR has 60% interest while PanContinental has 40%. FAR has said it will reduce its offshore interest to under 25%. FAR has operatorship in both block L6 onshore and offshore.

http://www.oilnewskenya.com/kenyas-...pancontinental-oil-gas-clash-over-cash-calls/
 
Change in substantial holding

Read More at : http://pancon.com.au/ Latest News link


Also, some hope out there, we may have hit bottom and the tide may be turning.


Oil prices rally on output freeze deal
Dow Jones newswires |
16 Feb, 10:17 PM |

Oil prices were higher on Tuesday, as four of the world's largest oil producers, including Saudi Arabia and Russia, agreed to freeze oil production at current levels.

The oil price, though, quickly retreated from early highs, hit by the fact that the countries, which also include Venezuela and Qatar, are agreeing to freeze production at levels which are already high and these countries will only freeze if others follow.

April Brent crude on London's ICE Futures exchange rose by 3.14 per cent to $US34.44 a barrel. Its US counterpart, the West Texas Intermediate, was trading up by 1.9 per cent at $US30 a barrel. The price of Brent had earlier risen as high as around 6 per cent.

On Tuesday, oil ministers from these four countries agreed to freeze output at January levels, but this agreement is contingent on other producers following suit.

Some investors will be disappointed that it is a freeze and not a cut, but the decision will help speed up price recovery from the second half of the year onward, said Olivier Jakob, an analyst at Switzerland-based Petromatrix.

"In the next two weeks it will make no difference, but further ahead it will tighten supply and demand", Mr Jakob said.

Some analysts are skeptical over whether the news will be enough to turn market sentiment toward a commodity whose price has fallen by around 70 per cent since its peak in June 2014.

Some analysts also believe that the decision to freeze production could actually be deemed bearish news by a market now expecting cuts.

The four countries combined produced an average of around 23.75 million barrels a day this January which accounted for more than 25 per cent of the total global output.

These countries have been running at production highs as they protect or expand their market share amid a historic glut of oil triggered by the entry of US shale production.

Russia produced a post-Soviet record of 10.989 million barrels a day in January, while Saudi Arabia produced 9.95 million barrels.

The market also faces new oil coming out of Iran, following the lifting of sanctions.

US shale production has also proved to be resilient, defying hopes that the low crude price would close down oil fields.

While supply remains high, demand growth in consumers such as China has weakened further. That means that fundamentals remain poor and the market is moving on headlines that promise oil cuts and demand boosts, some analysts say.

"Volatility is the name of the game at the moment," said Virendra Chauhan, an analyst at Energy Aspects. "You get a 5 per cent rally on the flat price, then you look at the fundamentals and it comes straight back off again,"

http://www.businessspectator.com.au/news/2016/2/16/markets/oil-prices-rally-output-freeze-deal
 
ASX ANNOUNCEMENT
1 APRIL 2016


Namibia PEL 0037 – Tullow request extension
On 12 June 2015, Pancontinental Oil & Gas NL (“Pancontinental”, “the Company”) announced that it had agreed with Tullow Kudu Limited, a subsidiary of Tullow Oil (“Tullow”) to extend the date by when Tullow was to elect to withdraw or continue in the Namibian PEL 0037 (“Licence”) joint venture (“Joint Venture”) to 31 March 2016.

Tullow has now requested a further extension by when Tullow can elect to withdraw or continue in the Licence. Pancontinental has agreed to extend the decision date to 7 April 2016.

A further update will be issued at that time.

For and on behalf of
Pancontinental Oil & Gas NL

Vesna Petrovic
Company Secretary

for more info, see Latest News at ; http://pancon.com.au/

50% jump in the share price today on this news from $0.004 to $0.006
 
Tullow elects to enter drilling phase of farmin to Namibia PEL 37
8/4/16

Pancontinental Oil & Gas NL (“Pancontinental”, “the Company”) is pleased to announce that Tullow Kudu Limited, a subsidiary of Tullow Oil (“Tullow”), has elected to continue as a participant in the joint venture in Namibian licence PEL 37 and, as such, is committed to drilling one exploration well subject to identifying a drillable prospect.

To date 4 large turbidite Prospects and 3 large Leads have been mapped in detail. The Prospects have potential for combined Prospective Resources of more than 900 Million Barrels of oil (recoverable).

Read more at Latest News: http://pancon.com.au/
 
Eco Atlantic Notes Tullow Oil's Decision to Enter Drilling Phase on neighbor's Namibia Block 037

TORONTO, ONTARIO, April 11th, 2016, Eco Atlantic Oil & Gas Ltd. (EOG.V) ("Eco Atlantic" or "the Company") is pleased to announce that it was informed by its partner in PEL 30 (“Cooper Block”) offshore Namibia, Tullow Kudu Ltd. (a wholly owned subsidiary of Tullow Oil Plc.) of the latter’s decision to enter into drilling phase on its joint venture block License number 037 together with Pan Continental Oil and Gas NL (Tullow: 65%, Pan Continental: 35%). Block 037 is just south of Eco Atlantic’s Cooper Block, in the Walvis Basin. According to the license terms, the drilling should occur by March 2017.

Tullow further confirmed its full commitment to further progress the exploration program on the adjacent Cooper Block, with the completion of the interpretation of the recently shot 3D program and to continue its focus on the identified drilling targets.

In Guyana, Tullow and Eco Atlantic confirmed their intention to accelerate the committed work program on the jointly held Orinduik Block offshore Guyana (Tullow: 60% operator, Eco Atlantic: 40%).

The companies are aggressively proceeding with a diligent analysis in light of recent discovery in the adjacent block Operated by Exxon Mobil. The recent Liza Discovery by Exxon is currently being appraised by a second well also in close proximity to the Orinduik block.

Tullow and Eco have agreed on an accelerated work program to include 2D seismic re-processing and interpretation and a design of the 3D seismic program to start immediately after the regional study and 2D interpretation are completed.

Eco Atlantic CEO, Gil Holzman stated: "We are extremely happy with Tullow's decision to enter drilling phase on License 037 and to continue focus their efforts and attention offshore Namibia and especially on our Cooper Block in partnership with AziNam and NAMCOR. We are very excited by what we are seeing based on the 3D interpretation process and are grateful to Tullow for the reassurance of their Namibian commitment and keen interest in the Walvis Basin.” Holzman added: “We are also very happy with the decision on acceleration of our joint program offshore Guyana and are looking forward to the next few months’ activities, research, and interpreted results."

About Eco Atlantic

Eco Atlantic is an oil and gas exploration company focused on the acquisition and development of unique upstream petroleum opportunities around the world. The Company’s objective is to identify technically merited prospective new and developing projects in frontier areas requiring low cost entry. In Namibia through wholly owned subsidiaries, the Company currently holds interests, some carried, in four offshore petroleum licenses in the Walvis and Lüderitz Basins.

In Ghana, Eco Atlantic also holds and operates an interest in the Deepwater Cape Three Points West Deep Water offshore block, covering 944 square kilometers and in Guyana, Eco Atlantic holds an interest in the 1,800 square kilometer Orinduik offshore block.

Eco Atlantic enjoys strong local presence in the countries in which it operates and has a longstanding relationship with the energy and oil and gas sectors throughout Africa and other maturing exploration plays internationally.

Forward Looking Statements

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: Certain information in this press release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expects” and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with oil and gas production and exploration, marketing and transportation; retention of and ability to attract Company personnel, regulatory approvals, loss of markets; volatility of commodity prices; currency and interest rate fluctuations; imprecision of reserve estimates; environmental risks; competition; inability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to income tax, environmental laws and regulatory matters. Readers are cautioned that the foregoing list of factors is not exhaustive.

Although Eco Atlantic believes in light of the experience of its officers and directors, current conditions, expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because Eco Atlantic can give no assurance that they will prove to be correct. The forward-looking statements contained in this press release are made as of the date hereof and Eco Atlantic undertakes no obligation to update publicly or revise any forward- looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

For More Information on Eco Atlantic Contact:

Gil Holzman
President and Chief Executive Officer
gil@ecooilandgas.com
Tel: +972.508884529

Alan Friedman
Executive Vice President
alan@ecooilandgas.com
Tel: +1.416.250.1955

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Read More at : http://ecooilandgas.com/news/index.php?&content_id=116
 
Will The Failed OPEC Talks Sink Premier Oil Plc, Tullow Oil Plc & Petrofac Ltd?
By Ian Pierce | Fool.co.uk – Tue, Apr 19, 2016 09:40 BST

The breakdown of the latest OPEC talks in Doha hasn't yet sent crude prices tumbling too far. However, if the nascent recovery in crude prices peters out, certain small producers could be in a heap of trouble.

Last week's news that first oil had been tapped at Premier Oil's (LSE: PMO) North Sea Solan field will be of great solace to the highly-indebted independent producer. The oil from Solan and the recently acquired North Sea assets of German utility E.ON will be critical to cash flow for the highly-indebted company. Year-end 2015 net debt stood at $2.2bn and there's some worry that the company will fail to meet a late June test of its debt covenants, which could be devastating for the firm.

The CEO has said that if oil is at $35/bbl the firm will be unlikely to meet those commitments, which could necessitate further debt restructuring. While Premier's opex costs are relatively low at $16/bbl, it desperately needs a strong rebound in crude prices due to an astounding 75% gearing ratio. Debt of this level and significant, and growing, operations in the relatively expensive North Sea mean Premier needs crude prices to rebound quickly and significantly.

Falling debt

West African producer Tullow Oil (LSE: TLW) also has a major new asset due to come on-line in 2016, the TEN Field off the coast of Ghana. Tullow is in a similar position as Premier, with high debt racked up for major new projects conceived when crude prices were much higher than they are now. Yet, Tullow is still in better shape than Premier with a gearing ratio of 56% and opex costs of $15.1/bbl in 2015.

This debt level is still high, but Tullow's break-even prices of $30-$40/bbl for West African fields show why analysts are expecting the firm to eke out a small profit in 2016. Furthermore, the low-cost assets from the TEN Field will add significantly to the bottom line come 2017 as production plateaus quickly and capital spending falls swiftly. With shares trading at a relatively modest 14 times 2017 earnings and debt levels set to come down, Tullow looks like a more attractive proposition than Premier Oil to me.

Worth diving in?

Oil services provider Petrofac (LSE: PFC) may not exactly cheer the breakdown in OPEC talks, but with many of its main customers now determined to maximize production the firm's order book has hit a record $20.7bn. Profits slumped from $581m to $9m in 2015 but this was largely due to branching out with the disastrously expensive lump sum Laggan-Tormore project the company has vowed never to try again.

Despite margins decreasing due to customers squeezing suppliers across the board, Petrofac still brought net debt down from $733m to $686m during 2015 for a gearing ratio of 56%. Freed from the anchor that was the Laggan-Tormore contract, analysts are expecting earnings to rebound significantly in 2016 and once again cover the 5.3% yielding dividend 1.85 times. With shares trading at a low 10 times forward earnings, decreasing debt levels and increasing revenue, Petrofac looks like a tempting way to gain exposure to the oil & gas industry at a low point in the cycle.

Of course, investing in an oil services company whose main customers are Middle Eastern national oil companies isn't without risks. For investors who are seeking growth shares but are more risk-averse, I recommend reading the Motley Fool's latest free report, A Top Growth Share.

This classic British brand's shares have already gone up in value 250% over the past five years, but the Motley Fool's crack analysts think the company has the potential to triple again over the next decade.

To discover this company for yourself, follow this link for your free, no obligation copy of the report.

Ian Pierce has no position in any shares mentioned. The Motley Fool UK owns shares of and has recommended Petrofac. The Motley Fool UK has recommended Tullow Oil. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Click on Link;

https://uk.finance.yahoo.com/news/f...vbgNHQgRwb3MDMARyZWdpb24DR0IEc3ltYm9sA1BGQy5M
 
Not about Pancontinental, but Oil in General and Drillers ramping up, or not.

Tom Ward: The 'dirty little secret' about $50 oil
Tom DiChristopher | @tdichristopher

Chesapeake Energy co-founder Tom Ward said Friday that oil prices need to recover to about $75 a barrel in order for most drillers to ramp up production.

Crude futures have recently approached $50 a barrel after rebounding more than 80 percent from this year's lows in the mid-$20 range. Some worry those prices will incentivize high-cost U.S. oil producers to put more rigs to work, worsening a global supply glut and putting off a sustainable price recovery.

U.S. oil production has fallen from a high of nearly 9.7 million barrels per day last year to about 8.8 million barrels per day.

But $50 is not high enough to elicit a production response, said Ward, who is now chairman and CEO of Tapstone Energy. That is because the capital markets are essentially closed to drillers, and drillers need to outspend cash flow to increase production, he said.

"In our business, the dirty little secret is you can't really spend within cash flow and grow production," he told CNBC's "Squawk Box."

U.S. oil and gas companies deferred a total of $380 billion in capital projects through the end of 2015 due to low oil prices, according to consultancy Wood Mackenzie. Ward said the effects of that falling spending shows up on a lag.

"Whenever you make a decision to stop drilling, it takes a number of months or years in order for that decision to actually impact the market," he said.

Once the oil market rebalances and prices reach a level sufficient to invest in new projects, it will take some time before capital markets open back up, Ward said.

http://www.cnbc.com/2016/05/20/the-dirty-little-secret-about-50-oil-tom-ward.html
 
Tullow Announces $300M Bond Offer

by Andreas Exarheas - Rigzone Staff - Wednesday, July 06, 2016

Tullow Oil plc has announced the launch of an offering of $300 million of convertible bonds, due 2021, which will be used for general corporate purposes and to fund capital investment in the group’s assets in West and East Africa.

The bonds will be issued by Tullow Oil (Jersey) Ltd, a wholly-owned subsidiary of the company incorporated in Jersey but tax resident in the UK, and will be guaranteed by the company and certain subsidiaries of the company. The bonds, which will be convertible into fully paid ordinary shares of the company, are expected to carry a coupon of between 5.875 percent and 6.625 percent per annum payable semi-annually in arrears on January 12 and July 12 in each year, with the first interest payment date being January 12, 2017.

The initial conversion price is expected to be set at a premium of between 30 percent and 35 percent above the volume weighted average price of an ordinary share on the London Stock Exchange between opening and closing of the market on July 6, 2016, converted at the prevailing USD:GBP spot rate.

Unless previously converted or redeemed, or purchased and cancelled, the bonds will be redeemed at par on July 12, 2021. Settlement and delivery of the bonds is expected to take place on or about July 12, 2016.

“The proposed convertible bond issue will further diversify Tullow Oil’s sources of funding and give the company access to a new investor base. As per our most recent trading statement, our focus will continue to be on strengthening the balance sheet and deleveraging the business,” said Ian Springett, chief financial officer of Tullow Oil, in a statement sent to Rigzone.

Following Tullow’s announcement, FirstEnergy described market reaction to the development as “neutral” and stated that the conversion price is well about the oil and gas advisory firm’s ReNAV for Tullow.

http://www.rigzone.com/news/oil_gas/a/145470/Tullow_Announces_300M_Bond_Offer
 
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