RE: Damara Fold Belt23 Apr 2024 08:25
Https://www.share-talk.co.uk/announcements/rns/88-energy-limited/proposed-placing-to-raise-up-to-a-9-8-million/34238926
Namibia
In February 2024, the Company announced the successful 20% WI transfer by Monitor Exploration Limited (Monitor) to 88 Energy in relation to PEL 93 located in the Owambo Basin, Namibia following receipt approval from the Ministry of Mines and Energy.
The Company, via its wholly-owned Namibian subsidiary, previously executed a three-stage farm-in agreement in November 2023 for up to a 45% non-operated working interest in onshore Petroleum Exploration Licence (PEL 93), which covers 18,500km2 of underexplored ground within the Owambo Basin in Namibia (refer to ASX announcement dated 13 November 2023).
Under the terms of the agreement, 88 Energy may earn up to a 45% working interest by funding its share of agreed costs under the 2023-2024 approved work program and budget as defined in the Farm-In Agreement (2024 Work Program) and any future work program budgets yet to be agreed. The maximum total investment by the Company is anticipated to be US$18.7 million.
"Namibia has been identified as one of the last remaining under-explored onshore frontier basins and one of the World's most prospective new exploration zones. PEL 93 is more than 10 times larger than 88 Energy's Alaskan portfolio and more than 70 times larger than Project Phoenix.
Recent drilling results on nearby acreage has highlighted the potential of a new and underexplored conventional oil and gas play in the Damara Fold belt, referred to as the Damara Play. Historical assessment utilised a combination of techniques and interpretation of legacy data to identify the Owambo Basin, and specifically blocks 1717 and 1817, as having significant exploration potential.
Monitor has utilised a range of geophysical and geochemical techniques to assess and validate the significant potential of the acreage since award of PEL 93 in 2018. It has identified ten (10) independent structural closures from airborne geophysical methods and partly verified these using existing 2D seismic coverage. Further, ethane concentration measured in soil samples over interpreted structural leads validates the existence of an active petroleum system, with passive seismic anomalies also aligning closely to both interpreted structural leads and measured alkane molecules (c1-c5) concentrations in soil.
DYOR
The forward work-program will start with a low impact ~200 line-kilometre 2D seismic program focusing on confirming the structural closures of the 10 independent leads identified. The 2D seismic program will be conducted in mid-2024 following a period of planning, public consultation, updating of environmental compliance requirements and relevant approvals. Results from the 2D seismic program will then be incorporated into existing historical exploration data over the acreage, with results used to identify possible exploration drilling locations.