Perth-based Pancontinental told the ASX today that the Maltese government had asked for the seismic work to be suspended for six months to help it resolve border issues with Tunisia and Libya that affected the western and southern boundaries of one exploration permit.

Pancontinental chief executive Andrew Svalbe put a brave face on the hold-up, saying he regretted the delay but resolution of boundary issues could open up additional areas for exploration.

“The border negotiations do not impact on our mapped main prospects and leads, we expect the delay will now see the program deferred until early 2006, after the northern hemisphere winter which is a period not conducive for seismic operations,” Savalbe said.

Last June Pancontinental and Sun signed a farm-in agreement with US major Anadarko International Energy regarding the Perth company’s Malta project that included a regional 2D seismic program over two areas on the Pelagian Platform in southern Maltese waters abutting Tunisia and Libya.

The 2005 survey was to determine the viability of several prospects, including the very large Chianti and Limoncello prospects, delineated in last year’s seismic shoot.

The partners have estimated the Chianti prospect had mean recoverable reserves of up to 455 million barrels of oil, while Limoncello had 968 million barrels.

Anadarko has options to earn a 65% interest in a production sharing contract area on completion of one well, and to increase its interest to 75% by drilling a further well at no cost to the other joint venture partners.

Current equities in the Malta joint venture are: Pancontinental Oil & Gas (80%, reducing to 28% after one well), and Sun Resources (20%, reducing to 7%).