Oil and gas explorer 88 Energy and its partners will start a 2D seismic program on PEL 93 in the Owambo basin in mid-2024, following planning, public consultation, environmental compliance requirement updates, and relevant approvals.
PEL 93, comprising blocks 1717 and 1817 within the Owambo Basin, belongs to Monitor Exploration (55%), Legend (15%), Namcor (10%), and 88 Energy (20%).
The mines ministry is expected to transfer 88 Energy’s 20% working interest in Q1 2024.
In its quarterly activities report Wednesday, 88 Energy said the forward work program will start with a low-impact ~200 line-kilometer 2D seismic program focusing on confirming the structural closures of the 10 independent leads identified.
The company added that the results from the 2D seismic program would be incorporated into existing historical exploration data and used to identify possible exploration drilling locations.
88 Energy said airborne geophysical methods uncovered 10 independent structural closures, partly verified using existing 2D seismic coverage.
“Further, ethane concentration measured in soil samples over-interpreted structural leads validates the existence of an active petroleum system,” the company said.
88 Energy also said recent drilling results on nearby acreage highlighted the potential of a new and underexplored conventional oil and gas play in the Damara Fold belt.
“Historical assessment utilised a combination of techniques and interpretation of legacy data to identify the Owambo Basin, specifically blocks 1717 and 1817, as having significant exploration potential,” 88 Energy added.
The earn-in agreement
88 Energy signed a US$18.7 million earn-in agreement with Monitor Exploration on November 13, 2023.
PEL 93 covers a vast 18,500 km2 acreage north of Namibia, comprising blocks 1717 and 1817 within the Owambo Basin.
The region has been identified as one of the last remaining underexplored onshore frontier basins and one of the world’s most prospective new exploration zones.
Under the terms of the farm-in agreement, 88 Energy and the current working interest owners will enter into a new joint operation agreement.
There is a three-stage farm-in agreement for 88 Energy, with a 45% non-operated working interest.
By funding its share of agreed costs under the 2023–2024 approved work program and budget, 88 Energy could earn up to 45% non-operating working interest.
