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88 Energy initiates 2D seismic programme at PEL 93, onshore Namibia

08:39, 8th July 2024
Victor Parker
Vox Newswire

88 Energy (88EFollow | 88E, an Alaska-focused hydrocarbon explorer, announced the commencement of 2D seismic acquisition at its Petroleum Exploration Licence 93 (PEL 93), located in the Owambo Basin, Namibia. 88 Energy holds a 20% working interest in the acreage as part of a 3-stage farm-in agreement with Monitor Exploration that will see 88E eventually own 45% of PEL 93.

The seismic programme has already been paid for by 88E as part of the farm-in with Monitor. The programme is to acquire a minimum of 200-line km of 2D seismic, with data completion expected in Q3 2024. The data will then be used to validate 10 independent structural closures identified from airborne geophysical methods (and part existing 2D seismic), in order to establish a maiden resource for the asset.

88 Energy also noted that a nearby operator is currently drilling several wells in the Owambo Basin and aiming to spud the first one imminently. This is expected to speed up understanding of the resource potential in the prospective onshore region of Namibia. 88 Energy aims to fast track its own exploration drilling with an initial well operational as early as 2H 2025.

88E shares rose 4.67% on the announcement.

View from Vox

88 Energy continues to report good progress from its PEL 93 asset in Namibia. PEL 93 is a rich 18,500km2 onshore acreage, comprising blocks 1717 and 1817 in the Owambo Basin. 88E can acquire a total of 45% working interest in PEL 93 under its 3-stage farm-in agreement with Monitor Exploration, with the first 20% secured via payment for the seismic programme.

88E previously announced the award of the 2D seismic contract for PEL 93 to Polaris Natural Resources Development. The programme is expected to run until Q3 2024, with processing of the data expected to complete by Q4 2024. The data will then be used to validate 10 previously identified targets and establish a maiden resource for the asset, with an initial exploration well expected in 2025.

Additionally, as the dataset is expanded, further leads are expected to be identified. Energy Africa is already actively exploring the area, which should further accelerate 88E's work programme. Overall, based on previous and adjacent exploration of the area, the Owambo Basin has already proven to be highly prospective with a ready path to market.

While initial exploration of the region has focused on the shallow Karoo play, developers have recently given more attention to the deeper and largely untested Damara play (see below) where significant independent exploration targets have been found of equivalent size to those discovered in offshore Namibia. For context, approx. 88% of recent offshore wells have successfully discovered oil.

Namibia represents one of the last frontier oil and gas jurisdictions capable of delivering multi-billion barrel discoveries, as evidenced by the recent offshore discoveries. Nearby GALP Energia's Mopane-1X represents the 5th major oil discovery in under 2 years within the Orange Basin and confirms the extension of the petroleum play from TotalEnergies and Shell's acreages.

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