88 Energy trims PEL 93
88 Energy and its partners have proposed surrendering 50% of petroleum exploration licence 93 (PEL 93), while retaining all 13 prospects and leads identified across the licence.
The joint venture is seeking approval for a further two years of exploration, including preparations for at least one well.
The proposal forms part of an application submitted to the ministry of mines on 29 June for PEL 93 to enter a second renewal exploration period from 3 October 2026. The current exploration period ends on 2 October.
PEL 93 covers about 18 500 square kilometres in the onshore Owambo Basin. A 50% relinquishment would leave roughly 9 250 square kilometres, depending on the final boundaries approved by the government.
The acreage reduction follows an integrated technical interpretation of the licence and is intended to concentrate future exploration on the areas the joint venture considers most prospective.
The proposed JV
"The proposed relinquishment is based on the results of the integrated technical interpretation and will enable the JV to focus future exploration activities on the highest-ranked opportunities within the licence area, including all 13 identified prospects and leads," 88 Energy said.
The Petroleum Act requires holders of exploration licences to surrender acreage as licences mature, although the statutory requirements are more nuanced than simply requiring a 25% relinquishment at renewal.
Section 37 provides for the relinquishment of at least 50% by the end of the fourth year and a further 25% by the end of the sixth year, unless different arrangements apply under the petroleum agreement or the minister grants an exemption.
88 Energy said the proposed 50% surrender exceeds the 25% minimum requirement under the PEL 93 renewal arrangements.
The company said the larger relinquishment would result in minor cost savings and mean no further relinquishment obligations would apply during the proposed renewal period.
The proposal is significant because the joint venture expects to surrender half of PEL 93 without giving up any of the 13 prospects and leads it has identified for further exploration.
Monitor Exploration, which operates the licence, completed an integrated interpretation combining new aerogravity, magnetic and radiometric data with historical 2D seismic, passive seismic and other legacy datasets.
Work done so far
The work improved structural definition across the licence and confirmed Lead 9 as a priority future drilling candidate.
88 Energy's project information says Lead 9 has an approximate aerial extent of 100 square kilometres and was further defined following about 200 line-kilometres of 2D seismic processing, followed by gravity and magnetic work.
The proposed surrender therefore represents a concentration of the exploration footprint around areas the partners now consider most prospective, rather than a withdrawal from PEL 93.
According to 88 Energy, the joint venture has completed all commitments attached to the current exploration period.
If the second renewal period is approved, the proposed two-year programme would carry a gross minimum joint venture exploration expenditure commitment of US$10 million, including a well commitment.
88 Energy expects its firm share of the programme through 30 June 2027 to amount to about US$98 000, together with approximately US$267 000 as its share of the licence bond.
