The partners in Namibia’s onshore PEL 93 have applied to move the licence into its next two-year exploration period, proposing to spend at least US$10 million and drill an exploration well as they narrow their focus to the Prospect 9 target in the Owambo Basin.
88 Energy, which holds a fully earned 20% non-operated interest in PEL 93, said the joint venture has formally applied for the Second Renewal Exploration Period from 3 October 2026. The current exploration period expires on 2 October.
The proposed programme includes preparations for and the drilling of at least one exploration well during the two years, although both the renewal and work programme still require approval from Namibian authorities.
Monitor Exploration operates PEL 93, holding 55%, while 88 Energy holds 20%, Legend Oil Namibia 15%, and NAMCOR 10%.
The joint venture has proposed a minimum expenditure commitment of US$10 million for the renewal period. 88 Energy said its share would be approximately US$2.67 million after accounting for its 20% interest and its pro-rata carry obligations to NAMCOR and Legend Oil.
Half the licence to be surrendered
The partners are also proposing to relinquish 50% of PEL 93’s existing approximately 18,500 square kilometres, twice the statutory minimum relinquishment requirement of 25%.
The decision follows the completion and integration of about 6,000 line-kilometres of high-resolution airborne gravity, magnetic and radiometric data with existing seismic, well and regional geological information.
88 Energy said the proposed reduction would allow the partners to focus spending on the most prospective areas while retaining the identified prospects and leads. The acreage retained would include Prospect 9, which has emerged as the joint venture’s leading drilling candidate.
The company said no further acreage relinquishment obligations would apply after the proposed 50% reduction.
Prospect 9 lined up for drilling
Operator Monitor Exploration now classifies Prospect 9 as drill-ready and interprets it as a large anticlinal structure containing several potential reservoir targets at three stratigraphic levels.
The principal target is the Otavi carbonate sequence, with additional targets identified within the Kombat sandstone sequence.
Work completed across PEL 93 includes 203 kilometres of modern vibroseis 2D seismic data and approximately 6,000 line-kilometres of airborne geophysical surveying. The partners integrated the results with existing well and regional geological data to improve their understanding of the basin and rank potential drilling locations.
The interpretation has identified Prospect 9 and another 13 exploration leads, several of which 88 Energy says are comparable in scale and could become future drilling candidates after further seismic work.
Subject to approval of the renewal, the partners intend to finalise the Prospect 9 drilling location and well objectives, undertake environmental and baseline studies, complete detailed well engineering and cost estimates, assess rig and service availability and obtain the necessary regulatory approvals before drilling.
ReconAfrica results boost confidence
The decision to advance PEL 93 comes as 88 Energy points to results from ReconAfrica’s Kavango West 1X well, approximately 100 kilometres east of PEL 93, as additional evidence supporting petroleum potential within the broader geological system.
ReconAfrica reported in July that natural gas had flowed to surface during testing of the Elandshoek Formation at Kavango West 1X. In August, it reported hydrocarbon flow to surface from the upper Huttenberg Formation after identifying approximately 75 to 76 metres of interpreted pay.
ReconAfrica subsequently elected to proceed with an open-hole horizontal production test targeting up to 1,000 metres of horizontal section in the Huttenberg Formation.
88 Energy believes those results reduce some of the geological uncertainty surrounding PEL 93 by providing regional evidence of hydrocarbon generation and migration. However, the results at Kavango West 1X do not establish that hydrocarbons are present at Prospect 9, which drilling will ultimately have to test.
88 Energy managing director Ashley Gilbert said the proposed drilling commitment followed extensive technical work that strengthened the prospect’s definition.
“The submission of the renewal application, together with the proposed commitment to future exploration drilling, follows a substantial programme of technical work at PEL 93 that has progressively strengthened the definition of Prospect 9 and confirmed it as the project’s highest-ranking opportunity,” Gilbert said.
“The flow of hydrocarbons to surface at Kavango West 1X is encouraging for PEL 93, and more generally for onshore oil and gas exploration in Namibia, and provides further support for hydrocarbon generation and migration within the broader geological system.”
The immediate hurdle is now regulatory approval for the Second Renewal Exploration Period. If granted, it would put PEL 93 on a two-year pathway towards its first exploration well and the first direct test of Prospect 9.
