REG - 88 Energy Limited - Initial Interpretation of PEL 93 2D Seismic

88 EnergyAnnouncement

10/12/2024 07:00

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RNS Number : 3943P  88 Energy Limited  10 December 2024

This announcement contains inside information

10 December 2024

88 Energy Limited

INITIAL INTERPRETATION OF PEL 93 2D SEISMIC CONFIRMS 10 INDEPENDENT LEADS

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is
pleased to provide an update on activities related to Petroleum Exploration
Licence 93 (PEL 93) in the Owambo Basin, onshore, Namibia. Initial processing
and interpretation of the 2D seismic data has been completed by Monitor
Exploration Limited (Monitor), the Operator for the exploration and
development programme of PEL 93.

Key highlights

·   Initial interpretation of 2D seismic data acquired over PEL 93 had
identified an initial suite of 10 significant independent structural closures
within the licence area.

·   Monitor's initial interpretation of the 2024 2D seismic data now
confirms the presence of multiple significant leads in the southern area of
PEL 93, each with large interpreted structural closures, with some individual
leads covering up to approximately 100km(2), exhibiting prominent vertical
relief and clear hydrocarbon charge potential from source rocks beneath the
prospects and in the kitchen to the north.

·   88 Energy has now received the 2D seismic products from Monitor and
will aim to independently validate Monitor's findings and work with the Joint
Venture to integrate all available well log data, airborne geophysics, soil
geochemistry together with the 2D seismic dataset.

·   A prospective resource estimate for PEL 93 is targeted for completion
in 1H 2025, following the internal review of Monitor's seismic interpretation.

 

·

 

 

 

PEL 93 Overview

PEL 93 is a vast, 18,500 km² onshore licence area comprising central licence
blocks 1717 and 1817. 88 Energy, through its wholly owned subsidiary Eighty
Eight Energy (Namibia) (Pty) Ltd (88EN), currently holds a 20% working
interest in PEL 93. Monitor, through its wholly owned private Namibian
subsidiary, Monitor Oil and Gas Exploration (Namibia) Pty Ltd (MELN) holds a
55% working interest. The remaining interests are held by Legend Oil Namibia
Pty Ltd (15%) and the National Petroleum Corporation of Namibia Pty Ltd
(NAMCOR) (10%). Monitor serves as the Operator for the exploration and
development of PEL 93.

 

 

 

Background to the Farm-In Agreement

Under the Farm-In Agreement executed on 14 November 2023, 88EN earned a 20%
working interest in PEL 93, and can increase this working interest to 45% by
funding its proportional share of exploration costs under the 2024 work
programme and budget. The maximum anticipated investment is approximately
US$18.7 million.

 

Forward work plan

Monitor has employed various geophysical and geochemical techniques to
evaluate the significant potential of the licence since the award of PEL 93 in
2018. Ten independent structural closures were initially identified using
airborne geophysical methods and later refined with newly interpreted 2D
seismic data.

Further analysis of ethane (C(2)H(6) or "C2") concentrations in soil samples
over these structures suggests the presence of an active petroleum system.
Passive seismic anomalies also align closely with structural leads and
measured alkane (C1-C5) concentrations in soil.

These results will be independently validated by 88 Energy and will ultimately
contribute to a prospective resource estimate, completion of which is targeted
for 1H 2025.  The JV may conduct further geophysical activities including,
but not limited to, the acquisition of additional 2D seismic before the next
phase of the PEL93 work-programme, which includes a single well commitment.
Additional 2D seismic may be acquired over lead 11 which has recently emerged
as a result of additional mapping by Monitor, based on existing gravity and
geochemical data. The forward work programme is subject to exploration results
and relevant Government and Joint Venture approvals.

 

This announcement has been authorised by the Board.

 

Media and Investor Relations

 88 Energy Ltd

 Ashley Gilbert, Managing Director
 Ashley Gilbert, Managing Director
 Tel: +61 (8)9485 0990

 Email:investor-relations@88energy.com

 Fivemark Partners, Investor and Media Relations
 Michael Vaughan                                          Tel: +61 (0)422 602 720

 EurozHartleys Ltd
 Dale Bryan                                               Tel: +61 (8)9268 2829

 Cavendish Capital Markets Limited                        Tel: +44 (0)207 220 0500
 Derrick Lee                                              Tel: +44 (0)131 220 6939
 Pearl Kellie                                             Tel: +44 (0)131 220 9775

 

Pursuant to the requirements of the ASX Listing Rules Chapter 5 and the AIM
Rules for Companies, the technical information and resource reporting
contained in this announcement was prepared by, or under the supervision of,
Dr Stephen Staley, who is a Non-Executive Director of the Company. Dr Staley
has more than 40 years' experience in the petroleum industry, is a Fellow of
the Geological Society of London, and a qualified Geologist/Geophysicist who
has sufficient experience that is relevant to the style and nature of the oil
prospects under consideration and to the activities discussed in this
document. Dr Staley has reviewed the information and supporting documentation
referred to in this announcement and considers the resource and reserve
estimates to be fairly represented and consents to its release in the form and
context in which it appears. His academic qualifications and industry
memberships appear on the Company's website and both comply with the criteria
for "Competence" under clause 3.1 of the Valmin Code 2015. Terminology and
standards adopted by the Society of Petroleum Engineers "Petroleum Resources
Management System" have been applied in producing this document.

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