88 Energy Limited (88 Energy or the Company) is pleased to provide an update on its partnered activities at Petroleum Exploration License 93 ("PEL 93") in the Owambo Basin, onshore Namibia. The Company holds a 20% working interest in PEL 93 in a Joint Venture with Monitor Exploration Limited ("Monitor") (the "Farmout Agreement").
Key highlights
· License extension secured: 12-month extension granted by the Namibian Government, extending the PEL 93 First Renewal Exploration Period to 2 October 2026.
· New work program approved: New Stage 1A Work Program introduced under an amended Farmout Agreement with Monitor, targeting pre-drill de-risking.
· Airborne gravity survey set for H2 CY25: High-resolution gravity survey to focus on the southern area of PEL 93, as part of the Stage 1A Work Program.
· Lead 9 confirmed as a priority target: ~100sqkm anticlinal structure identified in 2024 2D seismic data, with closure at all reservoir and source rock levels, and additional leads emerging within the gravity survey area.
· Regional catalysts building: ReconAfrica to drill Kavango West 1X exploration well from July 2025, which has striking similarities to Lead 9 located in the southern area of PEL 93.
License Extension Secured from Namibian Government
The Ministry of Mines and Energy of the Republic of Namibia has formally approved a 12-month extension to the First Renewal Exploration Period for PEL 93. Issued under Section 30 (2A) of the Petroleum (Exploration and Production) Act, the extension moves the current expiry date from 2nd October 2025 to 2nd October 2026. The following work commitments are to be completed during the extension period:
· Acquisition of an airborne gravity and magnetic survey, supplemented by radiometric data;
· Integration of datasets to support drilling location selection;
· Completion of an Environmental Impact Assessment (EIA) for drilling; and
· A minimum gross spend of US$800,000.
New Stage 1A Work Program Approved
In conjunction with the license extension, 88 Energy and Monitor have executed a variation to the existing Farmout Agreement. The amendment introduces a Stage 1A Work Program, comprising:
· A high-resolution airborne gravity, magnetic, and radiometric survey;
· Preparation of a certified prospective resource report;
· Identification of potential drilling locations; and
· Creation of an Authority for Expenditure (AFE) for the proposed well.
Stage 1A will be jointly funded on a 50:50 basis by 88 Energy and Monitor, subject to a cost cap of US$1 million, unless otherwise agreed.
PEL 93 Forward Work Program
The joint venture is preparing to commence the airborne gravity survey in H2 CY25, focusing on the southern portion of the license area in the heart of the Owambo Basin. This follows identification of Lead 9 - a very large anticlinal structure - during the CY24 2D seismic program. Lead 9 is similar to Recon's imminent Kavango West 1X well in that both show a very large and robust structural closure including the shallow clastic reservoirs, the deeper Otavi carbonate reservoir seen in Naingopo-1 and the deeper source rocks.
According to the Operator, Monitor, the regional structural model suggests the presence of a series of similar features extending across the southern Owambo Basin. Early gravity and radiometric data suggest even larger structural leads may be present in southeast of the block.
Monitor commented:
"Our early results are pointing to something potentially significant in the southern area of PEL 93 in the Owambo Basin. With multiple datasets aligning and the prospect of even larger structures emerging, the Joint Venture is building momentum towards a drilling event and what could be a basin opening discovery with broad implications for all of Namibia given the significance in unlocking a major new hydrocarbon play."
Regional Catalysts Building: ReconAfrica's Kavango West 1X Well
88 Energy notes the upcoming drilling of the Kavango West 1X exploration well by ReconAfrica in the adjacent Damara Fold Belt. This well will target a large fold structure approximately 20 km long and 5 km wide, anticipated to penetrate a thick Otavi carbonate reservoir with mature source rocks within the same closure.
Rig mobilisation is scheduled for mid-2025, with drilling expected to commence shortly thereafter.
This regional activity highlights growing industry interest in the broader Owambo Basin. With our strategic acreage position within the basin, and a clear forward program, 88 Energy and the Joint Venture is well-positioned to play a meaningful role in the next phase of onshore exploration and appraisal activities.
This announcement has been authorised by the Board.