Sun Resources Farms into Pancontinental's Malta Acreage

Pancontinental Oil and Gas has reached a preliminary agreement with Sun Resources under which Sun will fund the existing joint venturers through anticipated cost of the next seismic commitment in the Malta project in return for 20% equity.

The preliminary agreement is subject to being able to secure a satisfactory PSC over the presently targeted leads in Area 5 and completion of formal documentation.

On completion of such agreement and work Pancontinental would retain 32% equity in the project.

The current aim is to have an agreement and seismic work completed such that a drillable prospect may be ready by early 2004.