Australian-listed 88 Energy has cut about US$15 million from its future exploration commitments in Namibia’s Owambo Basin after restructuring its farm-in agreement for Petroleum Exploration Licence (PEL) 93, while retaining a 20% working interest in the licence.
The company said in its interim financial report for the six months ended 30 June 2026 that it had amended its farm-in agreement with operator Monitor Exploration Limited, making its 20% interest fully earned and unconditional.
Under the revised agreement, 88 Energy has removed its Stage 2 and Stage 3 farm-in obligations, significantly reducing the amount of capital it would be required to commit to future exploration activities in Namibia.
The company said the restructuring allows it to maintain exposure to the Namibian exploration asset while directing more capital towards its core Alaska portfolio.
PEL 93 covers approximately 10,000 square kilometres in Namibia’s underexplored Owambo Basin and is operated by Monitor Exploration.
During the reporting period, Monitor completed an integrated interpretation of aerogravity, magnetic, radiometric, seismic and legacy datasets across the licence.
“During the reporting period, Monitor completed an integrated interpretation of aerogravity, magnetic, radiometric, seismic and legacy datasets across the licence area,” 88 Energy said.
According to the company, the technical work improved the structural definition of PEL 93 and identified Lead 9 as a priority target for future drilling.
The joint venture has completed all commitments associated with the first renewal exploration period, which expires on 2 October 2026.
On 29 June, the partners applied to the Ministry of Industries, Mines and Energy for a second two-year renewal period starting on 3 October 2026.
The proposed exploration programme includes preparations for and the drilling of at least one exploration well.
As part of the renewal application, the joint venture has proposed relinquishing 50% of the existing licence area, exceeding the statutory minimum relinquishment requirement of 25%.
88 Energy said the proposed reduction follows its latest technical interpretation and would allow exploration to be concentrated on the most prospective areas, which contain 13 identified prospects and leads.
The renewal application remains subject to approval by the joint venture partners, NAMCOR and the Namibian authorities.
88 Energy said it plans to continue integrating technical data and advancing the ranking of Lead 9 and other exploration targets while assessing funding and commercialisation options for future exploration.
The company also plans to assess the implications of recent regional exploration results, including hydrocarbon flow tests reported by ReconAfrica in the broader basin.
The restructuring comes as 88 Energy seeks to manage its capital position after reporting a net loss after tax of US$1.78 million for the six months ended June 2026, sharply lower than the US$20.47 million loss recorded during the corresponding period in 2025.
The company ended June with US$8.22 million in cash and cash equivalents, no interest-bearing debt and net assets of US$88.55 million.
