The Ministry of Mines and Energy has approved 88 Energy Ltd’s proposed investment in Namibia, marking a significant step for the company’s diversification strategy.
The approval entails the transfer of a 20% working interest in Petroleum Exploration Licence 93 (PEL 93) situated in the Owambo Basin, marking the initial step in a farm-in arrangement.
The company said in a notice that this development positions 88 Energy to potentially secure up to 45% ownership in the expansive exploration project covering approximately 18,500 square kilometers.
Stage 1 will see 88 Energy invest US$0.7 million (N$13million) initially, followed by a US$3 million (N$55 million) carry for the 2024 work programme – which will include the capture of 2D seismic data.
“Namibia represents one of the last frontier oil and gas jurisdictions capable of delivering multi-billion barrel discoveries, as evidenced by recent offshore discoveries,” the company said.
The forward work programme will start with a low impact 200 line-km 2D seismic program focusing on confirming the structural closures of the 10 independent leads identified.
“The 2D seismic program will be conducted in mid-2024 following a period of planning, public consultation, updating of environmental compliance requirements and receipt of relevant approvals.” Elsewhere, investors continue to look forward to upcoming well-testing in Alaska, the notice said