88 Energy plans to initiate a 200-line-kilometer 2D seismic survey in Namibia’s Owambo Basin mid-year. This new survey aims to refine prospective closures within its expansive 18,500-square-kilometer claim under Petroleum Exploration Licence 93 (PEL 93), which borders Angola, a prominent oil-producing nation.
The initiative is supported by existing 2D seismic data and soil gas sampling, which validate the presence of hydrocarbon-producing source rocks.
The company anticipates that the new seismic data could lead to drilling as early as the first half of next year.
The Owambo Basin is one of the last remaining onshore frontier petroleum basins, attracting significant exploration interest.
Neighboring operator ReconAfrica plans to drill three or four wells approximately 200 km east of 88 Energy’s site, targeting both the shallow Karoo and the deeper, largely untested Damara formation reservoirs.
The hydrocarbons in ReconAfrica’s area are expected to be light oil and gas, based on depth, modeled maturation, geological age, and geochemical data.
The seismic acquisition will enhance 88 Energy’s technical understanding of the site’s geology. Conveniently, the survey is funded through a farm-in agreement with Monitor Exploration Namibia, allowing 88 Energy to earn an initial 20% working interest in PEL 93.
The company can increase its non-operating interest to 45% through a three-stage farm-in agreement.
Before 88 Energy’s involvement, the Namibian acreage was operated by a joint venture (JV) between Monitor Oil and Gas Exploration Namibia (MELN) with 75%, Legend Oil Namibia with 15%, and the Namibian Government’s National Petroleum Corporation of Namibia (NAMCOR) with 10%.
With the completion of phase one of the farm-in, 88 Energy now holds a 20% interest, reducing MELN’s stake to 55%, while NAMCOR and Legend’s interests remain unchanged. MELN will continue as the project’s operator.
ReconAfrica’s upcoming drilling efforts in the Owambo Basin will likely draw significant industry attention, setting the stage for 88 Energy’s drilling activities scheduled for next year and underscoring the growing focus on Namibia’s oil and gas potential.
