88 Energy ventures into Namibia’s frontier oil and gas with PEL 93 acquisition

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF), a prominent player in the oil and gas sector, has officially announced its successful Working Interest (WI) Transfer from Monitor Exploration Limited (Monitor) for Petroleum Exploration Licence 93 (PEL 93), located in the Owambo Basin, Republic of Namibia, following the approval of the Ministry of Mines and Energy. This strategic move signifies 88 Energy’s entry into one of the last frontier oil and gas jurisdictions, with the potential to uncover multi-billion barrel discoveries.

In November 2023, 88 Energy, through its wholly-owned Namibian subsidiary, executed a three-stage farm-in agreement for up to a 45% non-operated working interest in the onshore Petroleum Exploration Licence (PEL 93), covering an extensive area of 18,500km². This underexplored territory within the Owambo Basin represents a significant opportunity for the company. The operator, Monitor, has employed a variety of geophysical and geochemical techniques since the award of PEL 93 in 2018, identifying 10 independent structural closures and validating the existence of an active petroleum system, a crucial step in the exploration process.

The acquisition includes an initial Stage 1 consideration of US$0.7 million, with a commitment to carry up to US$3.0 million of the 2024 work program costs. This program will focus on the acquisition of approximately 200 line-km of low-impact 2D seismic data, aimed at confirming the structural closures of the 10 identified leads. Scheduled for mid-2024, this seismic program will incorporate results into the existing exploration data to pinpoint potential drilling locations.

88 Energy’s venture into Namibia through PEL 93 aligns with its strategy to explore new frontiers in the oil and gas industry, leveraging the underexplored potential of the Owambo Basin. This move is particularly significant considering the recent offshore discoveries in Namibia’s Orange Basin, which have highlighted the country’s capacity for large-scale oil finds. The farm-in agreement executed between 88 Energy’s Namibian subsidiary and Monitor Exploration Limited, alongside private Namibian company Legend Oil Namibia (Pty) Ltd and the National Petroleum Corporation of Namibia (NAMCOR), establishes a new Joint Operating Agreement (JoA) in relation to the Licence.

The farm-in agreement allows 88 Energy to earn up to a 45% working interest in PEL 93 by funding its share of agreed costs under the 2024 work program and any future work program budgets. With a maximum total investment cost anticipated to be US$18.7 million, 88 Energy is poised to significantly contribute to and benefit from the exploration and potential development of PEL 93.

88 Energy’s entry into Namibia’s oil and gas exploration scene through PEL 93 represents a strategic move towards unlocking the vast potential of the Owambo Basin. The careful selection of low-impact exploration methods reflects the company’s commitment to environmental stewardship while pursuing significant hydrocarbon prospects. As 88 Energy embarks on this ambitious exploration endeavor, the industry watches closely, anticipating the potential impact on Namibia’s status as a key player in the global oil and gas market.