Namibia will gain from the recent decision by 88 Energy Limited to sell its non-core oil and gas interest in the United States and redirect the proceeds into exploration on Namibian soil.
The Australian-listed company announced that it has disposed of its 75% non-operated working interest in Project Longhorn, a producing asset in the Permian Basin of Texas, for US$3.25 million (about N$59 million).
The company confirmed that the funds will be redeployed into what it calls “core exploration assets” in Alaska and Namibia.
With offshore Namibia emerging as one of the world’s most exciting energy frontiers, 88 Energy has highlighted the country as a jurisdiction offering “an exceptional opportunity to generate meaningful value for shareholders.”
Managing Director Ashley Gilbert explained that the sale reflects the company’s disciplined approach to capital management, with a focus on projects that can deliver outsized returns.
“This transaction further supports our efforts to accelerate progress across our exploration portfolio in Alaska and Namibia,” he said, adding that the move strengthens 88 Energy’s strategy of pursuing high-impact exploration-led value creation.
The decision also relieves the company of significant costs.
By selling its stake, 88 Energy will no longer participate in a new multi-well drilling program at Project Longhorn, which is estimated to carry a gross cost of up to US$2 million per well.
Instead, it will channel resources toward Namibia’s fast-developing exploration landscape.
Since acquiring Project Longhorn in 2022, 88 Energy generated approximately US$6.1 million in cash flow from the asset, which was used to fund exploration and overheads, having extracted value, the company is now looking to Namibia as the next chapter in its growth story.
The announcement highlights Namibia’s growing presence in the global energy sector.
Recent offshore discoveries have positioned the country as a promising frontier, attracting the attention of major international players.
For 88 Energy, shifting its focus from the mature oilfields of Texas to the untapped potential of Namibia signals confidence in the country’s future as an energy hub.
