Pancontinental Requests Trading Halt Ahead of Mbawa Results

Pancontinental Oil & Gas has submitted a request to have trading of its shares on the ASX halted prior to an announcement regarding its Mbawa well offshore Kenya. Pancontinental has requested the trading halt remains in place until the earlier of commencement of trading on September 10 or Pancontinental making an announcement to the market concerning the Mbawa well.

The Mbawa well is currently being drilled on Block L8 offshore Kenya in the Lamu Basin. On September 3 the company issued an update regarding the Apache-operated Mbawa well stating that the well had reached a depth of 2,553 meters.

Pancontinental was advised by Apache that the last casing was set at 1,997.53 meters and the current depth elevated mud gas readings have been seen during some of the drilling. Wireline logs are being run before drilling proceeds further. The significance of the elevated gas readings will not be known until wireline logs have been run and an evaluation has been made.

Operations are continuing according to the drilling plan. The secondary exploration target is deeper than the current drill depth and it is anticipated that this will be penetrated once the current wireline logs have been run and drilling has recommenced. The planned total depth of the well is 3,275 meters. 

The Kenya L8 Joint Venture consortium consists of Apache Corp. (Operator) 50%, Origin Energy 20%, Pancontinental Oil & Gas 15%, and Tullow Kenya 15%.