ASX ANNOUNCEMENT

5 December 2017

Tulainyo Gas Appraisal Well Drilling Update

Pancontinental Oil & Gas NL (ASX: PCL) ("Pancontinental" or "Company") is pleased to provide the following operations update for the Tulainyo 2-7 gas appraisal well in the Sacramento Gas Basin, California.

Steady progress is being made with the well which is currently at a depth of 3410 feet and progressing according to plan. The well has a planned total, measured depth of approximately 5,600 feet (1,700 metres).

Further progress announcements will be made in due course.

The Tulainyo Gas Discovery structure is a large anticline with up to 91km² of closure. It has a strong surface expression, gas seeps and gas encountered by historic drilling. Drilling of the structure in early 2015 by the joint venture encountered multiple, stacked, gas bearing conventional reservoirs that were not tested due to mechanical difficulties.

The Tulainyo joint venture includes operator California Resources Production Corporation, a subsidiary of a NYSE-listed company that is

one of California's largest oil and gas production companies and Cirque Resources LP, a private company based in Denver, Colorado.

As announced to ASX 23 June, 2017, Pancontinental estimates Prospective Resources of recoverable gas net to its fully earned interest (effective 13.33%), to be in the range:

Net Prospective Resource Pancontinental

P90

P50

Mean

P10

68

Bcf

233

Bcf

338

Bcf

691

Bcf

Cautionary Statement:

The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of petroleum.

For and on behalf of

Pancontinental Oil & Gas NL

John Begg

Executive Director & CEO

Head Office - Level 1, 10 Ord Street, West Perth, Western Australia 6005 Postal Address - PO Box 1154, West Perth, Western Australia 6872 Telephone +61 8 6363 7090 Facsimile +61 8 6363 7099 ACN 003 029 543

www.pancon.com.au

Pancontinental Oil & Gas NL published this content on 05 December 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 04 December 2017 23:21:02 UTC.

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