88 Energy has pinpointed no less than 10 independent hydrocarbon leads after doing the initial interpretation of newly acquired 2D seismic data across its petroleum exploration licence 93 (PEL93) in the Owambo Basin, in Namibia.
The findings, conducted by one of 88 Energy’s partners in the project, Monitor Exploration, have reconfirmed the existence of substantial closed-in structures right across the southern area of the lease, picked up in geophysical surveys conducted in the past six years.
Some of the leads span almost 100 square kilometres and appear to show the potential for wide columns which, according to the company, could easily be charged with hydrocarbons judging by the source rocks beneath the leads and the downdip extension to the north.
Since picking up the licence in 2018, Monitor has used various geophysical and geochemical methods to assess its potential.
Initially, it identified the 10 possible structural traps using airborne geophysical surveys.
Soil sampling showed elevated ethane levels above the structures, suggesting the presence of an active petroleum system.
Additional passive seismic studies also matched closely with the structures and supported findings of alkane concentrations in the soil.
The latest interpreted 2D seismic data has now conclusively backed up all the previous fieldwork done by the operator and sufficiently excited 88 Energy and Monitor to immediately commission an independent review as a standard check and measure.
When verified, the operator intends to start the work of putting together a prospective resource estimate for PEL93 due for completion in the first half of next year.
PEL93 spans a vast 18,500 square kilometres and is managed under a joint venture (JV) agreement in which 88 Energy holds a 20 per cent working interest, with Monitor Exploration leading the charge with 55 per cent.
The residual balance of the JV is held by Legend Oil Namibia with 15 per cent and the National Petroleum Corporation of Namibia with 10 per cent.
Under the 2023 farm-in agreement, 88 Energy also has the option to increase its stake to 45 per cent by spending up to a further $18.7 million in exploration costs.
Prior to the latest findings, some early work done by Canadian seismic specialist Earth Signal had picked up an extremely detailed image of a priority play within PEL93 called Damara.
Specifically, the initial analysis zeroed in on a substantial high-relief structure known as “Lead 9”, covering almost 186 square kilometres.
Given the lead is interpreted to be close to the original source of the hydrocarbons, it is now a priority target.
Adding a thick layer of interest to the narrative, recent activity by Reconnaissance Energy Africa (Recon Africa) at the nearby PEL 73 licence - and particularly its Naingopo-1 well targeting the Damara play - appears to show striking similarities with Lead 9.
Notably, Recon Africa recently farmed out 20 per cent of its ground to BW Energy in July for $24m.
That deal has stirred a lot of industry interest, hinting at the potential value of ongoing exploration within the huge Owambo Basin.
While pushing forward with its Namibian ventures, 88 Energy is also setting its sights on a colossal opportunity in Alaska called the Phoenix project, where it holds a commanding 63 per cent stake.
Warming up the icy frontier, independent consultant ERCE recently upgraded its 2C prospective resource estimate to a remarkable 378 million barrels of oil equivalent (MMboe) of which 239 MMboe is 88 Energy's share.
With numbers like that, Phoenix has the potential to be a game-changer.
With key oil and gas players in the region no doubt looking on closely, the JV’s detailed interpretation and subsequent resource estimate at PEL93 will be of extreme interest as it may hold the key to unlocking the huge potential of the underexplored Owambo Basin and with it, Namibia’s position in the global energy arena.
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By James Pearson
