88 Energy Announces Initial Seismic Findings in Namibia's PEL 93
88E (88E) Share Update December 2024 Monday 9th
88 Energy Identifies Promising Leads in Namibia's PEL 93
88 Energy Limited has unveiled promising initial interpretations from its seismic exploration in Namibia's PEL 93, revealing substantial hydrocarbon potential.
Instant Summary:
- Initial interpretation identifies 10 significant structural closures in PEL 93.
- Some leads cover up to 100 km² with clear hydrocarbon charge potential.
- 88 Energy holds a 20% working interest, with potential to increase to 45%.
- Prospective resource estimate expected in the first half of 2025.
Seismic Interpretation Results
88 Energy Limited, in collaboration with Monitor Exploration Limited, has completed the initial interpretation of 2D seismic data from the Petroleum Exploration Licence 93 (PEL 93) in Namibia's Owambo Basin. The data reveals 10 independent structural closures, indicating significant hydrocarbon potential.
These leads, primarily located in the southern area of PEL 93, exhibit large structural closures, with some extending over 100 km². The seismic data suggests a clear hydrocarbon charge potential, supported by source rocks beneath the prospects and in the northern kitchen area.
Strategic Interest and Investment
88 Energy, through its subsidiary Eighty Eight Energy (Namibia) Pty Ltd, currently holds a 20% working interest in PEL 93. The company can increase this interest to 45% by funding its share of exploration costs, with a maximum anticipated investment of approximately US$18.7 million.
The company plans to independently validate Monitor's findings and integrate various data sources, including well logs, airborne geophysics, and soil geochemistry, with the seismic dataset. A prospective resource estimate is targeted for completion in the first half of 2025.
Future Exploration Plans
Since the award of PEL 93 in 2018, Monitor has utilized various geophysical and geochemical techniques to assess the licence's potential. The initial identification of 10 structural closures was refined with newly interpreted 2D seismic data.
Further analysis of soil samples indicates the presence of an active petroleum system, with ethane concentrations aligning with structural leads. The joint venture may conduct additional geophysical activities, including acquiring more 2D seismic data, before the next phase of exploration, which includes a single well commitment.
The discovery of significant leads in PEL 93 is a positive development for 88 Energy, potentially increasing the company's valuation and investor interest. The potential to increase its working interest to 45% further strengthens its strategic position in the region.
Investor Reaction:
Analysts are likely to view this announcement positively, given the potential for substantial hydrocarbon reserves. However, the final impact on stock prices will depend on the results of further exploration and resource estimates.
Conclusion:
Investors should keep an eye on 88 Energy's upcoming resource estimates and exploration activities in PEL 93. The company's strategic decisions and exploration outcomes will be crucial in determining its future success in Namibia.