Under the three stage farm in agreement 88 Energys wholly owned subsidiary 88 Energy Namibia 88EN will initially make a payment of US$37 million to MELN over four instalments for a total of a 20 stake in PEL 93
In the second stage 88 Energy will make a US$75 million payment towards the first well gross cost estimated at US$12 million to receive an additional stake of 175
88 Energy in the third stage will have the option to fund US$75 million of the second well gross cost to earn an additional 75 stake in the licence This will bring 88 Energys aggregate stake in the licence to 45
Covering an area of 18500km² PEL 93 comprises blocks 1717 and 1817
MELN will receive a gross royalty of 2 of the revenues produced from the licence
The execution of this farm in agreement with Monitor provides 88 Energy and its shareholders with a fantastic opportunity to earn a significant working interest in a very large scale highly prospective under explored acreage position on attractive and logically staged commercial terms 88 Energy Managing Director Ashley Gilbert said
We are very pleased to be partnering with Monitor who will provide a wealth of technical expertise and strong in country and regional exploration experience Monitor has completed a systematic historical work programme that has identified significant large scale untested prospects
The agreement is subject to Namibian Government and other regulatory approvals
88 Energy is a dual listed oil and gas exploration and production company with a North American focus
