REG - 88 Energy Limited - Licence Extension & New Program Launched at PEL 93

88 EnergyAnnouncement

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RNS Number : 1944P  88 Energy Limited  02 July 2025

 

This announcement contains inside information

 

2 July 2025

 

88 Energy Limited

 

LICENCE PERIOD EXTENSION SECURED AND NEW EXPLORATION PROGRAM LAUNCHED AT PEL
93

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (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.

 

Figure 1: Location of PEL 93, onshore Owambo Basin, Namibia

 

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.

 

Image 2: Xcalibur 'air tractor' to be used for the gravity survey

 

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.

 

Media and Investor Relations

 

 88 Energy Ltd

 Ashley Gilbert, Managing Director

 Tel: +61 (0)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 (0)8 9268 2829

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

 Hannam & Partners

 Leif Powis / Neil Passmore               Tel: +44 (0) 207 907 8500

 

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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