Currently, MELN owns a 75% stake in PEL 93. Credit: Anita starzycka from Pixabay.

88 Energy has signed an agreement to earn a 45% stake in onshore petroleum exploration licence 93 (PEL 93) in the Owambo Basin, Namibia, from Namibian company Monitor Oil and Gas Exploration (Namibia) (MELN), a wholly owned subsidiary of Monitor Exploration.

Under the three-stage farm-in agreement, 88 Energy’s wholly owned subsidiary 88 Energy (Namibia) (88EN) will initially make a payment of $3.7m (A$5.8m) to MELN, over four instalments, for a total of a 20% stake in PEL 93.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

In the second stage, 88 Energy will make a $7.5m payment towards the first well gross cost, estimated at $12m, to receive an additional stake of 17.5%.

88 Energy, in the third stage, will have the option to fund $7.5m of the second well gross cost to earn an additional 7.5% stake in the licence. This will bring 88 Energy’s aggregate stake in the licence to 45%.

MELN will receive a gross royalty of 2% of the revenues produced from the licence.

See Also:

The agreement is subject to Namibian Government and other regulatory approvals.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

88 Energy managing director Ashley Gilbert said: “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.

“Monitor has completed a systematic historical work-program that has identified significant large-scale, untested prospects. The licence includes an extensive lead portfolio, which will provide an increased level of activity and value catalysts throughout the year.”

Covering an area of 18,500km², PEL 93 comprises blocks 1717 and 1817.

Currently, MELN owns a 75% stake in PEL 93, and serves as operator of its exploration and development.

Legend Oil Namibia owns a 15% stake in the licence while Namibian Government entity National Petroleum Corporation of Namibia owns the remaining 10% stake.