Monitor Exploration has announced a significant amendment to the Farm-In Agreement with 88 Energy regarding Petroleum Exploration Licence 93 (PEL 93), located onshore in the Owambo Basin, Namibia.

Commercial Consolidation

The updated agreement resets the commercial framework for PEL 93 to better align with: the project’s increasing  technical maturity, the strategic priorities of the partners and the best path to raising the finance required for such a sizeable opportunity. 

Key amendments include:

Fixing of Interests: 88 Energy has now fully earned a 20% unconditional working interest in PEL 93, while the cancellation of Stage 2 and Stage 3 farm-in options confirms the retention of a 55% license  position for Monitor  in this exciting hydrocarbon province.

Funding Clarity: With fixed  equity positions, the new terms clear the way for various  third-party funding options, including the potential public listing of a Namibia-focused entity to hold joint interests in the license.

Onward License Structure: 

Monitor Exploration: 55%
88 Energy: 20%
Legend Oil: 15%
Namcor: 10%

PEL 93 License Structure

Technical Advancement and De-risking Monitor has completed an integrated interpretation of newly acquired airborne gravity, magnetic, and radiometric data, merging it with recent and historical 2D seismic as well as remote sensing datasets.

Priority Targets: The results have confirmed Lead 9, now ranked up to Prospect 9, as a compelling and priority candidate for future drilling.

Regional Context: Ongoing testing at the nearby Kavango West-1X well by ReconAfrica provides critical regional context. Success in this part of the Basin would represent a basin-opening event with direct positive implications for the prospectivity of PEL 93.

Geological Advantages: Additionally, PEL 93 is de-risked by its distance from the igneous complexes in the eastern basin that have degraded reservoir quality in other regional wells. Furthermore, the area benefits from increased Mulden shale content, which is expected to enhance seal capacity and reservoir preservation. Both these aspects suggest optimal prospectivity for Lead 9 at the centre of the basin.

KeyFacts Energy: Monitor Exploration Namibia country profile