88 Energy’s bid to validate new oil targets in the recently-revived Owambo Basin in Namibia has taken a significant step with the completion of a major 203km 2D seismic acquisition program – on time and on budget.
The company is expecting to be able to refine its current prospect interpretation before the end of the year by integrating its new 2D seismic data with existing historical exploration information. Defining the prospective resource size and quality of the 10 Damara fold structures at its recently-acquired petroleum exploration license (PEL 93) acreage is management’s key objective from the program.
Following the data processing, 88 Energy believes it will be able to deliver a maiden prospective resource and pinpoint future drilling locations within a year.
The Owambo Basin was historically explored for its shallow Karoo supergroup host structures, but is now drawing renewed attention to the deeper, untapped Damara zone. The zone is the main focus of the basin’s resurgence following recent subsurface investigations by Monitor Exploration (Namibia) that have highlighted its substantial hydrocarbon potential, with geochemical and geophysical techniques validating the presence of an active petroleum system.
88 Energy believes the area, which is characterised by big fold and thrust structures, holds significant promise for exploration targets and it is hoping to replicate those found offshore in Namibia at a current success clip of 88 per cent – an impressive conversion rate for prospects by oil-and-gas standards.
The 203km of line seismic within the expansive 18,500 square kilometres of newly-revived territory – covering some 2.2 per cent of Namibia – represents a pivotal milestone for both the company and the region, with an eye to unlocking new oil discoveries. Importantly, the 2D seismic data fulfils the required licence commitment for the first renewal exploration (FRE) period.
The company’s strategic investment in the seismic program has secured it an initial 20 per cent working interest in PEL 93, with an option to increase the stake to 45 per cent through additional staged farm-in activities.
88 Energy managing director Ashley Gilbert said: “The under-budget and timely completion of the 2D seismic acquisition program for Petroleum Exploration Licence 93 finalises an important step in advancing our understanding of our vast, underexplored acreage position in the Owambo Basin in Namibia. We look forward to receiving the complete data processing and final interpretation by Q4 2024, which will be followed by securing a maiden prospective resource estimate.”
Prior to the company farming into PEL 93, the Namibian acreage was operated by a joint venture (JV) between Monitor Oil and Gas Exploration Namibia (MELN) with a 75 per cent share, private Namibian company Legend Oil Namibia with 15 per cent and the Namibian Government’s National Petroleum Corporation of Namibia (NAMCOR) holding the remaining 10 per cent.
The basin has been rife with renewed activity since Reconnaissance Energy Africa spudded its first well, Naingopo-1, on PEL 73 earlier this month. It is modelled to be a continuation of the interpreted opportunity at PEL 93.
After Recon Energy’s success, oil-and-gas development and production company BW Energy wanted a piece of the action and farmed into that company’s Namibian acreage. BW Energy acquired a 20 per cent working interest in PEL 73 by forking out US$16 million (AU$24.2 million).
The investment demonstrated the strong industry interest and support for the Owambo Basin’s potential – and in particular, the Damara play.
88 Energy’s initiative in the basin and successful acquisition of the good-quality 2D seismic data, seems to be a solid first step in an emerging oil exploration story. Namibia has seen many successes in recent times by way of offshore oil-and-gas discoveries and it now remains to be seen if the Owambo Basin can unlock a new phase of onshore joy in the renowned African resources nation.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Andrew Todd
