NAMIBIA: 88 Energy Acquires 20% WI in PEL 93

88 Energy Limited has announced the successful WI Transfer by Monitor Exploration Limited to 88 Energy in relation to Petroleum Exploration Licence 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 farmin agreement for up to a 45% non-operated working interest in the onshore Petroleum Exploration
Licence (PEL 93) covering 18,500km2 of underexplored ground within the Owambo Basin in Namibia.

Forward work plan
The operator, Monitor, has utilised 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

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.

An indicative forward work-program is shown below:

Background; Farm-In Agreement
The Farm-In Agreement was executed on 13th November 2023, between Eighty Eight Energy (Namibia)
(Pty) Ltd (88EN), a newly formed, wholly-owned subsidiary of 88 Energy and private Namibian
company, Monitor Oil and Gas Exploration (Namibia) Pty Ltd (MELN), a wholly-owned subsidiary of
Monitor. Following the WI Transfer, 88EN now holds a 20% working interest in the Licence, MELN
retains a 55% working interest and acts as Operator of the exploration and development of PEL 93.
Private Namibian company, Legend Oil Namibia (Pty) Ltd (Legend) holds a 15% working interest and
and Namibian government entity National Petroleum Corporation of Namibia (Pty) Ltd (NAMCOR) holds
a 10% working interest in the Licence. Under the terms of the Farm-In Agreement 88EN is, together
with the other three working interest owners, party to a new Joint Operating Agreement (JoA) in relation
to the Licence.

88EN may earn up to a total 45% working interest in PEL 93 by funding its share of agreed costs
under the 2024 work program and budget as defined in the Farm-In Agreement and any future work
program budgets yet to be agreed. The maximum total investment costs are anticipated to be US$18.7

The current and potential future PEL 93 Joint Venture partners and working interests are as follows:

Stage 1 schedule to earn a 20% working interest in the Licence is complete and comprises:
 1st instalment: US$0.28 million cash on signing for partial payment of back costs (Completed);
 2nd instalment: US$1.25 million to be paid in 88 Energy shares on signing for part payment of
the 2D seismic carry (Completed);
 3rd instalment: US$1.25 million to be paid in 88 Energy shares upon approval of the Licence WI
Transfer by the Namibian government, as a further payment in relation to the 2D seismic
program carry (Completed); and
 4th Instalment: US$0.9 million in cash to be paid on or before 1 June 2024 for remaining payment
of back costs and 2024 work-program carry.
The 2nd instalment payment of US$1.25 million was paid by issuing 322,147,513 new ordinary shares
in the Company at a deemed issue price of A$0.006 per share on 11 December 2023.
The 3rd instalment payment of US$1.25 million was paid by issuing 397,947,229 new ordinary shares
in the Company at a deemed issue price of A$0.0048 per share today following receipt of the Namibian
government approval.1

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