Namibia has approved the transfer of the PEL 93 in blocks 1717 and 1817 of the Owambo onshore basin from Monitor Exploration Oil and Gas to 88 Energy Limited.
Monitor Oil and Gas Exploration now holds 55%, 88 Energy through its newly formed 88 Energy Namibia has 20%, Legend Oil Namibia 15% and Namcor 10%.
Under the farm-in agreement, 88 Energy Namibia and the other three working interest owners are parties to a new joint operating agreement about the licence.
88 Energy agreed to acquire the PEL 93 covering 18,500 km2 of underexplored ground within the Owambo Basin in Namibia on November 13, 2023.
The three-stage farm-in agreement entailed that 88 Energy would earn up to 45% non-operated working interest after funding its share of agreed costs under the 2024 work program.
88 Energy has paid the first instalment of US$0.28 million cash on signing for partial payment of back costs, the second instalment of US$1.25 million in shares on signing for part payment of the 2D seismic carry, and the third instalment of US$1.25 million in shares.
Energy 88 will pay the fourth instalment of US$0.9 million in cash on or before June 1, 2024, for the remaining payment of back costs and 2024 work-program carry.
According to the agreement, 88 Energy is expected to invest US$18.7 million.
The forward work program will start with a low-impact ~200 line-km 2D seismic program focusing on confirming the structural closures of the ten independent leads identified.
The 2D seismic program will be conducted in mid-2024 following planning, public consultation, updating 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.
