88 Energy Secures Working Interest in Namibia’s PEL 93

Friday, February 23, 2024

88 Energy has announced the successful working interest transfer by Monitor Exploration to 88 Energy in relation to Petroleum Exploration License 93 (PEL 93), located in the Owambo Basin, Republic of Namibia following receipt of the approval of the Ministry of Mines and Energy.

In November 2023 88 Energy, via 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 License (PEL 93) covering 18,500 sq km of underexplored ground within the Owambo Basin in Namibia.

Highlights

• 20% working interest in PEL 93 successfully transferred (WI Transfer) to 88 Energy (or the company) as part of Stage 1 of a three-stage farm-in agreement (Farm-in Agreement).
• WI Transfer follows approval by the Namibian Ministry of Mines and Energy.
• Stage 1 consideration of $0.7 million, with a carry of up to US$3.0 million of 2024 work program to include acquisition of ~200 line-km of low-impact 2D seismic (Seismic).
• Farm-in Agreement provides entry into PEL 93, a vast 18,500km2 onshore acreage position comprising blocks 1717 and 1817 in the Owambo Basin, Namibia (the License).
• License comprises an extensive lead portfolio, with ten significant independent structural closures identified from a range of geophysical and geochemical techniques.
• Considerable potential for more leads to be identified as dataset is expanded.
• Seismic acquisition planned for mid-2024 with potential initial exploration well targeting the Damara play as early as H2 CY2025.
• Namibia represents one of the last frontier oil and gas jurisdictions capable of delivering multi-billion barrel discoveries, as evidenced by recent offshore discoveries.
• The company notes further Namibian offshore results in the Nambian Orange Basin, with GALP Energia confirming the discovery of a “significant column of light oil in reservoir-bearing sands of high quality”, in their first exploration well (Mopane-1X) in block PEL83.
• Mopane-1X represents the fifth major oil discovery in under two years within the Orange Basin and confirms the extension of the petroleum play from TotalEnergies and Shell’s acreage.

Forward work plan

The operator, Monitor, has utilized a range of geophysical and geochemical techniques to assess and validate the significant potential of the acreage since award of PEL 93 in 2018. It has identified 10 independent structural closures from airborne geophysical methods and partly verified these using existing 2D seismic coverage.

Further, ethane concentrations measured in soil samples over interpreted structural leads validates the existence of an active petroleum system, with passive seismic anomalies also aligning closely to both interpreted structural leads and measured alkane molecules (c1-c5) concentrations in soil.

The forward work-program will start with a low impact ~200 line-km 2D seismic program focusing on confirming the structural closures of the 10 independent leads identified. The 2D seismic program will be conducted in mid-2024 following a period of planning, public consultation, updating of environmental compliance requirements and receipt of relevant approvals. Results from the 2D seismic program will then be incorporated into existing historical exploration data over the acreage, with results used to identify possible exploration drilling locations.

For the full update including the forward work plans and financials, see the release here.

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