88 Energy plans to drill a potential initial exploration well on PEL 93, targeting the Damara play in the Owambo Basin as early as the second half of 2025.
PEL 93 includes an extensive lead portfolio with ten significant independent structural closures identified from a range of geophysical and geochemical techniques, and there is potential for more leads to be identified as the dataset is expanded.
88 Energy says PEL 93 is ten times bigger than its Alaskan portfolio and more than 70 times larger than its Project Phoenix.
In November 2023, 88 Energy executed a three-stage farm-in agreement for up to 45% non-operated working interest.
88 Energy will earn 20% in the first stage, 37.5% in stage two, and 45% in stage three.
88 Energy expects to invest N$359 million (US$18.7 million).
Monitor Exploration Ltd. has 55%, Legend 15%, and Namcor 10%. Before the acquisition of the 20%, Monitor Exploration had 75% shares in the EPL.
The company says it plans to start with a low-impact 200-line kilometre 2D seismic program to confirm the structural closure of the 10 independent leads identified by Monitor Exploration since 2018.
Monitor Exploration used various geophysical and geochemical techniques to assess and validate the acreage’s significant potential.
88 Energy says the 2D seismic program will be in mid-2024, after planning, public consultation, updating of environmental compliance requirements, and relevant approvals.
The results from the 2D seismic program will be incorporated into existing historical exploration data over the acreage and used to identify possible exploration drilling locations.
According to 88 Energy, ReconAfrica’s recent drilling results in the Kavango basin have highlighted the potential of a new and underdeveloped 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 and specifically blocks 1717 and 1817 as having significant exploration potential,” the company says in its quarterly report for the period ended March 31, 2024.
As of December 31, 2024, 88 Energy had a cash balance of N$214 million (A$17.5 million) and no debt, while net cash outflows concerning operating expenses for the first quarter of 2024 totalled N$943.000 (A$0.77 million) compared to N$17.6 million (A$1.44 million) in the same quarter in 2023.
The company says cost reduction initiatives commenced in the quarter, targeting a reduction in salary and overhead costs.
