88 Energy and its partners have proposed surrendering 50% of Namibia’s PEL 93, while retaining all 13 prospects and leads identified across the licence as they seek approval for another two years of exploration that would include preparations for at least one well.
The proposal forms part of an application submitted to the Ministry of Industries, Mines and Energy on 29 June for PEL 93 to enter a second renewal exploration period from 3 October 2026. The current exploration period ends on 2 October.
PEL 93 currently covers approximately 18,500 square kilometres in the onshore Owambo Basin, meaning a 50% relinquishment would leave roughly 9,250 square kilometres, depending on the final boundaries approved by government.
The acreage reduction is based on an integrated technical interpretation of the licence and is intended to concentrate future Exploration on the areas the joint venture now considers most prospective.
“The proposed relinquishment is based on the results of the integrated technical interpretation and will enable the JV to focus future exploration activities on the highest-ranked opportunities within the licence area, including all 13 identified prospects and leads,” 88 Energy said.
The Petroleum (Exploration and Production) Act requires holders of exploration licences to surrender acreage as licences mature, although the statutory position is more nuanced than simply requiring 25% at renewal. Section 37 provides for the relinquishment of at least 50% by the end of the fourth year and a further 25% by the end of the sixth year, unless different arrangements apply under the petroleum agreement or the minister grants an exemption.
88 Energy nevertheless says the proposed 50% surrender exceeds the 25% minimum requirement under the PEL 93 renewal arrangements. The company said giving up the larger area would result in minor cost savings and mean that no further relinquishment obligations would apply during the proposed renewal period.
The proposal is significant because the joint venture expects to give up half of PEL 93 without surrendering any of the 13 prospects and leads it has identified for further Exploration.
Monitor Exploration, which operates the licence, completed an integrated interpretation combining new aerogravity, magnetic and radiometric data with historical 2D seismic, passive seismic and other legacy datasets.
The work improved structural definition across the licence and confirmed Lead 9 as a priority future drilling candidate.
88 Energy’s own project information says Lead 9 has an approximate areal extent of 100 square kilometres and was further defined after about 200 line-kilometres of 2D seismic processing, followed by gravity and magnetic work.
The proposed surrender therefore represents a concentration of the exploration footprint around the areas the partners now consider worth pursuing rather than a withdrawal from PEL 93.
According to 88 Energy, the joint venture has completed all commitments attached to the current exploration period.
If the second renewal period is approved, the proposed two-year programme would carry a gross minimum joint venture exploration expenditure commitment of US$10 million, including a well commitment.
88 Energy expects its firm share of the programme through 30 June 2027 to amount to approximately US$98,000, together with about US$267,000 as its share of the licence bond.
The more substantial expenditure associated with the Exploration well from July 2027 remains subject to joint venture and Namcor approval.
The company said the proposed second renewal period includes preparations for and drilling of at least one Exploration well, although the final programme remains dependent on the renewal being approved.
88 Energy holds a fully earned and unconditional 20% working interest in PEL 93, alongside operator Monitor Exploration (55%), Legend Oil (15%) and Namcor (10%).
During the first half of 2026, 88 Energy amended its farm-in agreement with Monitor, removing its Stage 2 and Stage 3 earn-in obligations and reducing its future minimum capital exposure by approximately US$15 million while preserving its 20% interest.
The company has also retained an option to increase its interest in the licence. It is considering future funding routes including third-party participation and the possible creation of a Namibia-focused listed entity.
88 Energy said its immediate work in the second half of 2026 would focus on further integrating technical data, ranking Lead 9 and the other prospects, evaluating funding options, and working with Monitor on the submissions required for government consideration of the renewal.
The decision now rests with government and the joint venture partners. If the renewal and proposed relinquishment are approved, PEL 93 would move into its next exploration phase with roughly half its current geographical footprint but all 13 of the prospects and leads that the partners currently consider worth retaining.
