Pancontinental Energy has not received a response from Namibia's Ministry of Industry, Mines & Energy regarding its application for a 12-month extension of Petroleum Exploration Licence 87 (PEL 87). The licence, which hosts the prospective Saturn complex, expired on 22 January, with the extension application having been submitted on 6 October 2025.

Legal and Administrative Context

The company notes that neither the Petroleum Act nor the PEL 87 Petroleum Agreement specifically addresses this situation of an unresponded-to application. However, Pancontinental points to a provision in the Petroleum Act stating that a licence does not expire while the ministry is considering a renewal application. The company is actively liaising with the ministry and will update the market upon receiving formal notification.

Potential Reasons for the Delay

Sources indicate the delay is likely due to resource constraints within the ministry and a disjointed administrative process. This disorganization is attributed to last year's establishment of an Upstream Petroleum Unit, which reports directly to Namibia's president, complicating the standard administrative workflow.

Market Reaction and Strategic Efforts

The uncertainty caused a significant but partially recovering market reaction. Pancontinental's share price fell by about one-third on the news but had recovered to a 20% decline by the close of trading the following Friday. The company has been conducting detailed studies on PEL 87 to attract major oil companies into a data room, with the strategic aim of securing a farm-out deal for the Saturn complex, which has previously drawn interest from Woodside Energy.