Pancontinental Energy (ASX:PCL) has lifted a trading halt to reveal its hotly awaited potential deal with Woodside (ASX:WDS) is… still just potential.
Long story short, the company has a licence offshore Namibia in the Orange Basin.
In March 2023, Woodside executed an option to acquire a 56% stake in the licence (if it decides it wants to) which would mean microcap Pancontinental sees the southern hemisphere’s second largest oil and gas company farm-in on its turf.
The implication is, should that farm-in be lucrative, it could send PCL shares soaring. But that is just an implication.
After calling a trading halt earlier in the week relating to the Namibian licence, which caught the eyes of tens of thousands of HotCopper users – could this be the big reveal? – Pancontinental lifted the halt on Friday to reveal Woodside has until late March 2025 to make up its mind.
To be fair, this sent shares 20% higher – to 1.7cps.
But some other users in the announcement thread were wondering why there needed to be a trading halt at all for what was perceived to be a kind of non-event type announcement.
“Great. Another hurdle cleared. Now we wait for the next one – the farm-in confirmation (the biggie),” user Drswing said.
“Looks to me like ball very much in Woodside’s court now. Will Meg build a better future with PCL?,” user Uphillnow wrote, referencing Woodside CEO Meg O’Neill.
But not all were pleased.
“Six degrees investor relations earning those free options by writing this announcement I see,” user Cheekypoke mused. You have to admit the username is fitting.
One user, Pulpfiction, seemed to be the only one asking the big question. “Is that all the Trading Halt was for?? Overkill if you ask me,” they wrote.
At least investors will know by April 2025.
PCL last traded at 1.7cps.
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