88 Energy Awards Seismic Contract for Namibian Oil Exploration

88 Energy Ltd, an Alaska-focused oil exploration company, has awarded a contract to Polaris Natural Resources Development Ltd for a 2D seismic data acquisition program in Namibia's Owambo Basin. The program, which aims to acquire a minimum of 200 line kilometres of low-impact 2D seismic data, will focus on PEL 93, an 18,500 square kilometre licence area where 88 Energy holds a 20% working interest through its wholly-owned Namibian subsidiary.

The seismic data acquisition is set to commence in mid-2024, with completion expected in the third quarter of the year. Processing of the data is anticipated to be finalized in Q4 2024. The program will focus on confirming the structural closures of 10 independent leads identified from airborne geophysical methods and partly verified using existing 2D seismic coverage.

Why this matters: The successful exploration of the Owambo Basin could have significant implications for Namibia's economy and energy security, potentially positioning the country as a major player in the global oil market. Furthermore, the discovery of substantial oil resources in the region could also have broader implications for the global energy landscape, influencing prices and supply chains.

88 Energy signed a three-stage farm-in agreement with a subsidiary of Monitor Exploration Ltd in November, allowing it to earn up to a 45% non-operated working interest in PEL 93. TheOwambo Basinhas garnered significant attention following the identification of a series of large, anticlinal structures, collectively expected to represent a resource of equivalent size to recent offshore Namibian discoveries.

The Damara Play, a distinct regional play within the basin, is characterized by several coherent, mappable, large fold and thrust structures which generated 19 prospects and 4 leads certified by third-party resource auditor, NSAI. The target structures observed are up to 25km in length and 3 to 5km wide, highlighting the potential for substantial oil discoveries.

Reconnaissance Energy Africa Ltd (ReconAfrica) is planning to drill and test 3 to 4 wells in well-defined prospects within the Karoo andDamara playsin the second half of 2024. These drilling activities are expected to provide crucial data and insights into the resource potential of the Owambo Basin, which could have significant implications for Namibia's oil industry and the companies operating in the region.

Theawarding of the seismicdata acquisition contract to Polaris Natural Resources Development Ltd marks an important step for 88 Energy in its exploration efforts in Namibia. The upcoming seismic survey and the planned drilling activities by ReconAfrica have the potential to unlock substantial oil resources in the Owambo Basin, positioning Namibia as a significant player in the global oil market.