88 Energy reveals that pre-risking is underway at PEL 93, where the company holds a 20% working interest, following regulatory approval for a licence extension and the rollout of a defined technical work programme aimed at maturing drill-ready targets.
The mines ministry granted a 12-month extension to the First Renewal Exploration Period for PEL 93, pushing the licence expiry date out to October 2026.
The extension provides additional time for the joint venture to complete pre-drill de-risking activities and progress lead maturation across the permit.
A high-resolution gravity survey is scheduled for the first quarter of calendar year 2026, focusing on the southern portion of PEL 93 where multiple structural leads have already been identified.
The survey is intended to improve subsurface imaging and refine the interpretation of basin architecture ahead of further exploration decisions.
JV partner and operator Monitor Exploration will also conduct an airborne geophysical survey across PEL 93 during 2026.
The programme will acquire high-resolution magnetic and gravity data to enhance subsurface definition, better constrain basin geometry and identify structural features critical to hydrocarbon prospectivity. The joint venture expects this work to materially improve prospect mapping and support the maturation of drill-ready targets before any exploration drilling.
The forward work programme for PEL 93 includes defining the prospective resource potential of identified leads, advancing discussions with potential farm-in partners to support the next phase of exploration, and preparing for future seismic acquisition while finalising drilling targets.
At 31 December 2025, 88 Energy reported a cash balance of A$6.8 million, equivalent to about US$4.4 million.
Exploration and evaluation expenditure for the quarter totalled approximately A$0.4 million, down from A$0.6 million in the September quarter, reflecting spending on well permitting and planning, analysis of newly secured leases and PEL 93 work programme activities.
Staff and administration costs during the period were about A$0.9 million, compared with A$1.1 million in the previous quarter, and included director and consulting fees of roughly A$0.2 million.
The company also paid a 20% deposit of approximately A$0.2 million in relation to newly acquired leases.
Regional exploration activity has provided additional support for the geological model underpinning PEL 93. In December 2025, Reconnaissance Energy Africa announced positive results from its Kavango West-1X exploration well on PEL 73, located within the same Damara Fold Belt play fairway.
ReconAfrica reported about 400 metres of gross hydrocarbon-bearing section within the Otavi carbonate sequence, including 64 metres of net hydrocarbon pay confirmed by wireline logs and supported by mud-log anomalies.
Additional hydrocarbon shows were identified in deeper fractured limestone intervals, with production testing planned for the first quarter of 2026.
Structural trends associated with the carbonate reservoir targets intersected at Kavango West-1X are interpreted to extend eastwards toward PEL 93, which lies roughly 200 kilometres away.
The confirmation of net pay and the decision to proceed to production testing reinforce the potential of Otavi carbonate-hosted structural closures within PEL 93, where 11 comparable leads have been mapped.
