NAMIBIA: 88 Energy Secures 12-month Extension for PEL 93 to Commence the Airborne Gravity Survey

The Ministry of Mines and Energy of the Republic of Namibia has formally approved a 12-month extension to the First Renewal Exploration Period for PEL 93. Issued under Section 30 (2A) of the Petroleum (Exploration and Production) Act, the extension moves the current expiry date from 2nd October 2025 to 2nd October 2026. The following work commitments are to be completed during the extension period:

·     Acquisition of an airborne gravity and magnetic survey, supplemented by radiometric data;

·     Integration of datasets to support drilling location selection;

·     Completion of an Environmental Impact Assessment (EIA) for drilling; and

·     A minimum gross spend of US$800,000.

New Stage 1A Work Program Approved

In conjunction with the license extension, 88 Energy and Monitor have executed a variation to the existing Farmout Agreement. The amendment introduces a Stage 1A Work Program, comprising:

·     A high-resolution airborne gravity, magnetic, and radiometric survey;

·     Preparation of a certified prospective resource report;

·     Identification of potential drilling locations; and

·     Creation of an Authority for Expenditure (AFE) for the proposed well.

Stage 1A will be jointly funded on a 50:50 basis by 88 Energy and Monitor, subject to a cost cap of US$1 million, unless otherwise agreed.

PEL 93 Forward Work Program

The joint venture is preparing to commence the airborne gravity survey in H2 CY25, focusing on the southern portion of the license area in the heart of the Owambo Basin. This follows identification of Lead 9 – a very large anticlinal structure – during the CY24 2D seismic program. Lead 9 is similar to Recon’s imminent Kavango West 1X well in that both show a very large and robust structural closure including the shallow clastic reservoirs, the deeper Otavi carbonate reservoir seen in Naingopo-1 and the deeper source rocks.

According to the Operator, Monitor, the regional structural model suggests the presence of a series of similar features extending across the southern Owambo Basin. Early gravity and radiometric data suggest even larger structural leads may be present in southeast of the block.

Monitor commented:

“Our early results are pointing to something potentially significant in the southern area of PEL 93 in the Owambo Basin. With multiple datasets aligning and the prospect of even larger structures emerging, the Joint Venture is building momentum towards a drilling event and what could be a basin opening discovery with broad implications for all of Namibia given the significance in unlocking a major new hydrocarbon play.”