GCI88 Energy strikes farm-in agreement for Namibian oil and gas venture in the Owambo Basin
() , an Alaska-focused hydrocarbon explorer, announced a 3-stage farm-in agreement with a wholly-owned subsidiary of Monitor Exploration to earn up to a 45% non-operated interest in onshore Petroleum Exploration Licence 93 (PEL 93), located in the Owambo Basin, Namibia.
The farm-in agreement provides 88 Energy with a staged entry into PEL 93, a vast 18,500km2 onshore acreage comprising blocks 1717 and 1817 in the Owambo Basin of Namibia. The licence includes an extensive lead portfolio, with 10 significant independent structural closures identified from geophysical and geochemical surveys. There is further potential upside for more leads as datasets are expanded.
The forward work plan includes the acquisition of c. 200 line-kilometres of low-impact 2D seismic planned for mid-2024, and a potential initial exploration well targeting the Damara play as early as H2 2025. The farm-in agreement remains subject to regulatory approvals, expected by Q1 2024.
Ashley Gilbert, 88 Energy Managing Director, commented:
"The execution of this farm-in agreement with Monitor provides 88 Energy and its shareholders with a fantastic opportunity to earn a significant working interest in a very large scale, highly prospective, under-explored acreage position on attractive and logically staged commercial terms.
We are very pleased to be partnering with Monitor who will provide a wealth of technical expertise and strong in-country and regional exploration experience. Monitor has completed a systematic historical work-program that has identified significant large-scale, untested prospects."
View from Vox
A major announcement from 88 Energy of a new farm-in agreement providing a staged entry into PEL 93, a rich acreage in onshore Namibia. The licence has an extensive lead portfolio with clear pathway to commercialisation via an already planned and scheduled forward work programme. gains an opportunity to earn a significant working interest in PEL 93, with future potential to transition to project operator.
Moreover, 88 Energy's partner and operator on the project, Monitor, has significant technical know-how with extensive experience in Namibia, facilitating the process further. Namibia represents one of the last frontier oil and gas jurisdictions capable of delivering multi-billion barrel discoveries, as evidenced by the recent Venus-1X offshore light oil discovery. The country has a first-class operating jurisdiction with a highly competitive petroleum regime.
The farm-in to PEL 93 and forward work programme add to 88 Energy's existing Alaskan exploration and appraisal activities. It is a logical expansion of the Alaskan portfolio, with similar scale and potential.
Investors should stay tuned for more details on the project, including an upcoming activity schedule for an initial program of c. 200 line-km of low-impact 2D seismic. This will minimise environmental impact and be used to better define potential drilling prospects for c. H2 2025.
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