88 Energy Ltd, listed on AIM, ASX, and OTC, has entered into a farm-in arrangement with Monitor Exploration’s subsidiary, marking the company’s strategic expansion from the Alaskan North Slope into the emerging oil and gas region of Namibia.
Under the terms of the deal, 88 Energy is set to acquire up to a 45% non-operating interest in the onshore Petroleum Exploration Licence 93 (PEL 93) in the Owambo Basin.
The agreed work program includes conducting 200 line-kilometres of 2D seismic surveys, with the operations expected to start in mid-2024. There is also the prospect of drilling an initial exploration well targeting the Damara play by the latter half of 2025.
This partnership enables 88 Energy to strategically stagger its entry into the expansive onshore territory of Namibia, which covers 18,500 square kilometres across blocks 1717 and 1817 in the Owambo Basin, a region gaining traction for potential large oil and gas reserves as highlighted by the recent Venus-1X light oil find offshore.
Ashley Gilbert, the managing director of 88 Energy, remarked on the transaction as an exceptional opportunity for the company and its investors to secure a considerable interest in a promising and largely untapped land area. The agreement’s structured terms are considered both appealing and logical.
Gilbert praised Monitor for their technical expertise and valuable exploration experience within the region. He noted Monitor’s thorough historical work that has pinpointed sizable untested prospects.
While maintaining its commitment to its Alaskan assets, 88 Energy views PEL 93 as a fitting enhancement to its portfolio, offering scale and potential that align with shareholder expectations.
The licence expands 88 Energy’s activity scope and is expected to introduce a series of operational and value milestones over the coming years.
