This announcement contains inside
information
10 May 2024
88 Energy
Limited
2D SEISMIC CONTRACT AWARDED
FOR NAMIBIAN PEL 93 EXPLORATION PROGRAM
Highlights
· 2D seismic acquisition program for Petroleum Exploration
Licence 93 (PEL 93 or
Licence) awarded to Polaris
Natural Resources Development Ltd (Polaris).
· Seismic program already paid for by 88 Energy as part of the
farm-in agreement with Monitor Exploration (Namibia) Pty Ltd
(Monitor) to earn its
initial 20% working interest in PEL 93.
· Program to acquire a minimum of ~200-line km of 2D seismic,
with data acquisition to commence mid-2024.
· Data to be used to validate 10 independent structural closures
identified from airborne geophysical methods (and part existing 2D
seismic), in pursuit of a maiden prospective resource
declaration.
· PEL 93 is a vast 18,500km2 onshore
acreage position comprising blocks 1717 and 1817
in the Owambo Basin, Namibia; 88 Energy can earn up to a 45%
non-operated interest via farm-in.
· Considerable potential for more leads to be identified as
dataset is expanded.
· Targeting fast-tracking of drilling with the first potential
exploration well as early as 2H 2025.
· Nearby operator is drilling 3 to 4 wells in the Owambo basin
and is expected to spud the first well in mid-2024.This represents
a significant catalyst for understanding of the onshore resource potential in
Namibia, which already holds a ready path to market.
88 Energy Limited (ASX:88E, AIM:88E,
OTC:EEENF) (88 Energy or the Company) is pleased to announce the awarding of the 2D seismic data
acquisition program for PEL 93 to Polaris. This program is set to
acquire a minimum of ~200-line km of low-impact 2D
seismic.
88 Energy, through its wholly-owned
Namibian subsidiary, holds a 20% working interest in PEL 93, which
covers 18,500km2 of underexplored sub-surface within the
Owambo Basin in Namibia. The Company can earn up to a 45%
non-operated working interest in PEL 93 via its existing
three-stage farm-in agreement.
Following a period of planning,
public consultation, and receipt of relevant approvals, the program
is expected to commence mid-2024. It will focus on confirming the
structural closures of the 10 independent leads identified from
airborne geophysical methods and partly verified using existing 2D
seismic coverage.
The 2D seismic program is expected
to be completed in Q3 2024, with processing of the data anticipated
to be completed in Q4 2024. Results from the 2D seismic program
will then be incorporated into existing historical exploration data
over the acreage and used to identify possible exploration drilling
locations.
Subsurface investigations completed
to date on PEL 93 by Monitor (since its award in 2018) have
incorporated a range of geophysical and geochemical techniques to
assess and validate the significant potential of the acreage. This
included airborne geophysical methods, reprocessing of existing 2D
seismic coverage, as well as measuring methane and ethane
concentrations in soil samples over interpreted structural leads,
validating the existence of an active petroleum system. Passive
seismic anomalies from this work were noted to align closely to
both interpreted structural leads and measured alkane molecules
(c1-c5) concentrations in soil.
Significant New Structural Play
Identified
A series of large, anticlinal
structures have been identified in the onshore Owambo Basin,
collectively expected to represent a resource of equivilant size to
recent offshore Namibian discoveries.
Initial exploration in the Owambo
Basin has focused on the shallow Karoo Play, however attention has
turned to the substantial potential of the deeper and largely
untested Damara Play.
The Damara Play resulted from a
large fold and thrust episode, providing significant independent
targets for exploration of an equivalent size to those discovered
offshore Namibia, where an exploration renaissance is underway with
~88% success rate (with recent wells discovering oil).
Monitor has utilised a range of
geophysical and geochemical techniques to identify and validate the
significant potential of the acreage.
PEL 93, Owambo Basin, Onshore
Namibia
Damara Play Drilling In 2H
2024
Reconnaissance Energy Africa Ltd
(ReconAfrica) are
planning on drilling and testing 3 to 4 wells in well-defined
prospects within two distinct regional plays (Karoo and Damara), as
part of an initial exploration drilling campaign in PEL073 and
PEL001, located on the flanks of the Owambo basin.
The Damara Play is characterised by
several coherent, mappable, large fold and thrust structures which
generated 19 prospects and 4 leads certified by third party
resource auditor, NSAI. The target structures observed are up to
25km in length and 3 to 5km wide. Reservoirs are expected to be
encountered in both the marine/fluvial sandstones of the Mulden
formation as well as the fractured carbonates of the Otavi
Supergroup. The Otavi group was penetrated in well 6-2 and
contained oil shows on mud logs as well as oil saturations in
side-wall cores.
The Pre-Rift Karoo play interval is
interpreted to be late Neo-Proterozoic to Early Palaeozoic
sedimentary rocks which are analogous to the sediments of the
Owambo Basin to the west.
Given their depth, modelled
maturation, geological age and geochemical data from wells and
seeps, the hydrocarbons are expected to be both light oil and
gas.
[1] From
ReconAfrica announcement dated 14 March 2024 on the TSX - NSAI
Prospective resource Estimates
About Polaris
Polaris
provides comprehensive project design and management,
state-of-the-art technologies, and a highly experienced team of
seismic professionals. Polaris provides a start to finish solution
using 'Best in Class' procedures and standards, and has contributed
to many world-class discoveries with over 1,000 projects completed
on four continents since 1996.
Polaris has succesfully completed 2D
seimsic acquitiion programs regionally for Invictus Energy
(ASX:IVZ) in Zimbawe and also for Reconnaissance Energy Africa Ltd
(TSX:RECO) in Namibia.
Polaris are set to mobilise staff
and equipment ahead of program commencement in late Q2
2024.
Background; Farm-In
Agreement
The Farm-In Agreement was executed
on 14 November 2023, between Eighty Eight Energy (Namibia) (Pty)
Ltd (88EN), a newly
formed, wholly-owned subsidiary of 88 Energy, and private Namibian
company, Monitor Oil and Gas Exploration (Namibia) Pty Ltd
(MELN), a
wholly-owned subsidiary of Monitor. Following the WI Transfer, 88EN now holds a 20% working
interest in the Licence, MELN retains a 55%
working interest and acts as Operator of the exploration and
development of PEL 93. Private Namibian company, Legend Oil Namibia
(Pty) Ltd (Legend)
holds a 15% working interest and Namibian government entity,
National Petroleum Corporation of Namibia (Pty) Ltd
(NAMCOR), holds a
10% working interest in the Licence. Under the terms of the Farm-In
Agreement, 88EN is, together with the other three working interest
owners, party to a new Joint Operating Agreement
(JoA) in relation
to the Licence.
88EN may earn up to a total
45% working interest in PEL 93 by funding its share of agreed costs under the 2024 work
program and budget as defined in the Farm-In Agreement and any
future work program budgets yet to be agreed. The maximum total
investment costs are anticipated to be US$18.7 million.
The current and potential future PEL
93 Joint Venture partners and working interests are as
follows:
Entity
|
Pre
Farm-in
|
Stage 1 -
Current
(Past
costs & 2D)
|
Stage
2
(1st Well)
|
Stage
3
(2nd Well)
|
Monitor*
|
75.0%
|
55.0%
|
37.5%
|
30.0%
|
Legend
|
15.0%
|
15.0%
|
15.0%
|
15.0%
|
NAMCOR
|
10.0%
|
10.0%
|
10.0%
|
10.0%
|
88
Energy
|
-
|
20.0%
|
37.5%
|
45.0%
|
*Operator
Stage 1 Completed schedule to earn a 20%
working interest in the Licence comprised:
§ 1st instalment: US$0.28 million cash on signing for
partial payment of back costs (Completed);
§ 2nd instalment: US$1.25 million paid in 88 Energy
shares on signing for part payment of the 2D seismic carry
(Completed);
§ 3rd instalment: US$1.25 million paid in 88 Energy
shares upon approval of the Licence WI Transfer by the Namibian
government, as a further payment in relation to the 2D seismic
program carry (Completed); and
§ 4th Instalment: US$0.92 million paid in 88 Energy
shares for remaining payment of back costs and 2024 work-program
carry (Completed).
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
|
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EurozHartleys Ltd
|
|
Dale Bryan
|
Tel: +61 (0)8 9268 2829
|
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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
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