88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has agreed a farm-in deal with a subsidiary of Monitor Exploration that expands the former's footprint beyond Alaska's North Slope and into Namibia.
Specifically, it is set to earn up to a 45% non-operated working interest in the onshore Petroleum Exploration Licence 93 (PEL 93), which is in the Owambo Basin.
The activity programme under this agreement includes the acquisition of 200 line-kilometres of low-impact 2D seismic, planned for mid-2024.
Additionally, there is a potential initial exploration well targeting the Damara play as early as the second half of the calendar year 2025.
The tie-up provides 88 Energy with a staged entry to a substantial onshore acreage spanning 18,500 square kilometres, comprising blocks 1717 and 1817 in the Owambo Basin.
Namibia is increasingly recognised as a key frontier for oil and gas exploration, with the potential for multi-billion barrel discoveries, as evidenced by the recent Venus-1X offshore light oil discovery.
"The execution of this farm-in agreement with Monitor provides 88 Energy and its shareholders with a fantastic opportunity to earn a significant working interest in a very large scale, highly prospective, under-explored acreage position on attractive and logically staged commercial terms," said 88 Energy managing director, Ashley Gilbert.
"We are very pleased to be partnering with Monitor who will provide a wealth of technical expertise and strong in-country and regional exploration experience. Monitor has completed a systematic historical work programme that has identified significant large-scale, untested prospects.
"While 88 Energy is continuing its focus on its existing Alaskan North Slope assets, PEL 93 provides a logical expansion of 88 Energy's existing portfolio, with similar scale and potential that our shareholders are accustomed to.
"The licence includes an extensive lead portfolio which will provide an increased level of activity and value catalysts throughout the year."