NAMIBIA: 88 Energy Earns 20 Interest Following Amendment to the Farm-In Agreement with Monitor Exploration
88 Energy Limited has provided an update on its interest in Petroleum Exploration Licence 93 (PEL 93), onshore Namibia, following an amendment to the Farm-In Agreement with operator Monitor Exploration Limited (Monitor).
The amended agreement confirms 88 Energy’s 20% working interest as fully earned and unconditional, simplifies the original structure and removes future funding obligations under the farm-in.
Monitor has also made available its integrated aerogravity, magnetic and radiometric interpretation, enhancing subsurface understanding at PEL 93, strengthening advanced lead definition and further de‑risking key exploration leads.
Concurrently, 88 Energ says that the ongoing exploration and production testing at the nearby Kavango West-1X well (ReconAfrica owned and operated PEL 73), provides important regional context, with success representing a potential basin‑opening event that could materially underpin a re-rate in the value of 88 Energy’s position.
Amended Farm-in Agreement
The amendment resets the commercial framework for PEL 93, to appropriately reflect its evolving technical maturity, align risk and capital exposure with 88 Energy’s broader portfolio strategy and to allow management to maintain focus on its priority Alaska assets while retaining exposure to a potentially basin‑opening onshore Namibia play.
Key terms:
· Fully vested and unconditional 20% working interest.
· Stage 2 and Stage 3 farm‑in obligations cancelled, removing reassignment risk and future funding obligations outside the Joint Operating Agreement (JOA).
· Reduces 88 Energy’s minimum financial exposure by US$15 million and preserves balance sheet flexibility.
· Meaningful exposure to frontier basin upside retained, with full non‑consent and withdrawal protections under the JOA.
· Clears the way for various to third-party funding structures, including potential introduction of direct third‑party funding or the possible formation and public listing of a Namibia‑focused entity to hold joint interests in PEL 93, without obligating 88 Energy to fund or underwrite future development.
· Potential participation in upside is preserved, via the option to participate in next-stage funding or structuring solutions.
PEL 93 Technical Update
Monitor has completed an integrated interpretation of the recently acquired airborne gravity, magnetic and radiometric survey data over PEL 93. The work integrated the new datasets with historical 2D seismic, passive seismic and legacy data, including additional 2D seismic shot in late-2024, soil gas sampling and remote sensing.
Key outcomes:
· Positive interpretation of results has enhanced the subsurface understanding of the licence area.
· Lead 9 confirmed as a priority future drilling candidate.
· Results support expansion of a multi-lead exploration inventory.
· Improved structural definition across the block, de‑risking the exploration inventory beyond structural considerations.
Monitor also noted the presence of at least one mature source rock demonstrated by oil and gas shows in wells drilled by near‑neighbour ReconAfrica to the east of the basin, notably the Kavango West‑1X well, in combination with legacy geological evidence across the basin.
Further, reservoirs and seals were identified in both the Mulden and Otavi sections in the Etosha‑5‑1A well drilled in the western part of the basin in 1991, which are expected to continue into the central basin.
Importantly, PEL 93 lies away from an igneous complex identified in the eastern basin that appears to have degraded reservoir quality in some nearby wells, and benefits from increased Mulden shale content that may improve seal capacity and reservoir preservation.
Newly generated advanced lead maps illustrate the structural configuration of Lead 9 and surrounding leads, highlighting multiple robust closures across the licence.
Regional Exploration Activity
Activity across the Owambo Basin continues to build, with ReconAfrica progressing production testing at the Kavango West-1X discovery in adjacent PEL 73.
This work is expected to provide critical insight into hydrocarbon deliverability and inform broader basin potential. Success would represent a basin-opening event, with direct positive implications for the prospectivity of PEL 93.
