Cavendish analyst James McCormack has reiterated a bullish price target for 88 Energy pLtd of 1.1p against a 0.35p publication price.
It follows 88 Energy’s first foray into Namibia in a notable expansion of the oil and gas exploration and production company’s footprint.
The group signed a deal with Monitor Exploration to earn up to a 45% non-operated working interest in Petroleum Exploration Licence 93 (PEL 93), onshore Namibia.
“The attractive phased deal structure provides 88 Energy with optionality to increase its working interest following key operational milestones, limiting both risk and financial exposure,” noted McCormack.
He continued: “PEL 93 shares the same high impact, large-scale discovery potential as the North Slope of Alaska, with Monitor identifying ten independent structural closures with an aggregate prospective resource of 7.6 billion bbls in the oil case and 32.7Tcf in the gas case (both unrisked).”
The forward work programme involves the acquisition of low-impact 2D seismic to derisk the project ahead of an initial exploration well.
This is planned for as early as the second half of 2024, McCormack said.