88 Energy is stepping off the Texas treadmill to pursue larger exploration upside in Namibia.
The company has sold its 75% non-operated stake in the Permian Basin’s Project Longhorn for US$3.25 million and will redeploy proceeds to Petroleum Exploration Licence 93 (PEL 93) in the Owambo Basin.
The divestment removes exposure to a planned multi-well programme in Texas, at approximately US$2 million per well, and follows cumulative cash distributions of around US$6.1 million from Longhorn since 2022.
An impairment of around US$10 million is expected in the half-year accounts.
88 Energy entered Namibia via a three-stage farm-in agreement made in November 2023, providing it with a pathway to earn up to a 45% non-operated working interest in PEL 93 alongside operator Monitor Exploration.
In February 2024, the mines ministry approved the transfer of an initial 20% interest to 88 Energy under Stage 1, which included a US$3 million carry to fund at least ~200 line-km of low-impact 2D seismic.
The current joint-venture interests are as follows: Monitor Exploration, 55% (operator); 88 Energy, 20% (earning up to 45%); Legend Oil Namibia, 15%; and NAMCOR, 10%.
Development has moved from desktop to field and back into planning with a clearer runway.
During Stage 1, the joint venture completed and interpreted the new 2D seismic over the southern fairway, confirmed multiple Damara-age anticlinal leads and ranked “Lead 9” as the immediate drilling focus.
In July 2025, the mines ministry granted a 12-month extension to the First Renewal Exploration Period, pushing expiry to 2 October 2026 and approving a Stage 1A pre-drill programme.
Stage 1A comprises a high-resolution airborne gravity, magnetic, and radiometric survey in the second half of 2025, followed by the integration of all datasets to select a drill location.
This is followed by the completion of the drilling environmental impact assessment and the publication of a certified prospective resource statement.
Money invested and committed to date is anchored by the Stage 1 earn-in and the newly approved Stage 1A work. 88 Energy has already funded its Stage 1 obligations, including the US$3 million carry that delivered the seismic acquisition and studies.
Under Stage 1A, total spend is capped at US$1 million. It is being funded 50:50 by Monitor and 88 Energy, implying up to US$0.5 million from 88 Energy for the airborne survey, resource certification and EIA work.
The company has also redirected US$3.25 million of Longhorn sale proceeds to its core exploration budget, with Namibia identified as a priority allocation alongside Alaska.
Within PEL 93, the immediate technical objective is to utilise airborne geophysics and integrated modelling to finalise a surface location on Lead 9 and establish an Authority for Expenditure.
Subject to Stage 1A outcomes, resource certification, EIA approvals and partner sanction, the joint venture is targeting a drill decision in the 2026–2027 window.
Put simply, Texas was becoming increasingly capital-intensive for lower incremental returns; Namibia offers very large onshore leads, staged and cost-shared work commitments, a clear regulatory runway and the potential for a single discovery to deliver step-change value.
