Monitor Exploration Ltd (MEL), through its subsidiary Mel Oil and Gas Exploration Namibia, says it has entered into a collaborative agreement with Exito Energy Resources to jointly advance exploration activities within Exito’s Petroleum Exploration Licence (PEL) 105.
The partnership aims to leverage the combined expertise and resources of both companies to unlock the potential of the Owambo Basin and identify hydrocarbon potential in the region.
By integrating remote sensing data with existing gravity, magnetic, geochemical and passive seismic information, Exito and Monitor aim to develop a comprehensive understanding of the basin’s untapped resources.
“Exito Energy Resources (Exito) and Monitor Exploration Ltd (MEL), operating in Namibia through its subsidiary Mel Oil and Gas Exploration Namibia (Pty) Ltd (MELN), both holding neighbouring exploration licences in Namibia’s onshore Owambo Basin, have entered into a collaborative agreement to jointly advance exploration efforts within Exito’s PEL 105 during its Initial Exploration Period,” a release by Monitor Exploration read.
The release shows that during the Initial Exploration Period, the companies will focus on preliminary studies to assess the basin’s potential.
If successful, further exploration activities, such as 2D seismic surveys, will be considered to refine drilling locations. Exito is also open to bringing in additional partners for the next phase of exploration.
“Monitor retains the option to seek approval to become a direct licence holder in PEL 105, strengthening their collaborative partnership,” the release read.
Exito Energy Resources holds a petroleum exploration licence (PEL 105) over 17,035 square kilometres in Namibian blocks 1718 and 1818.
Meanwhile, MEL reportedly holds a 75% stake in PEL 93, an area spanning 18,500 square kilometres in the central region of the Owambo Basin in northeastern Namibia.
The company is said to have completed passive seismic surveys, remote sensing and gas soil sample analyses, which they believe indicate oil accumulations in several large structures mapped using legacy gravity, seismic and magnetic data.
The company is seeking investors to help fund further exploration of this promising acreage, with a target raise of US$20-30 million.
Additionally, ReconAfrica (TSX RECO) recently reported positive drilling results, confirming the presence of oil and viable reservoirs in the eastern extension of the Owambo Basin.
