Cavendish Securities reiterated its 'buy' rating and 21.8p target price for 88 Energy Ltd (AIM:88E, ASX:88E, OTCQB:EEENF, FRA:POQ), highlighting the increased potential of the company’s Namibian acreage following positive regional drilling results.
The recent Kavango West-1X well, drilled by a separate operator, confirmed meaningful net pay and hydrocarbon shows, and will now progress to production testing.
Importantly, the structural trends and carbonate reservoir targets encountered are interpreted to extend into 88 Energy’s PEL 93 licence area.
Cavendish said the results materially enhance confidence in the regional petroleum system and support the prospectivity of 88 Energy’s eleven mapped leads. The well effectively de-risks a comparable play type that 88E is targeting.
The company is set to begin an airborne geophysical survey over PEL 93 in the first quarter of 2026. This is expected to refine subsurface mapping and pave the way for drill-ready prospects.
With a market cap of just £12.2 million and enterprise value of £7.8 million, 88E remains highly leveraged to exploration success.
Cavendish views the Namibian potential as a key value driver and Monday’s developments as a meaningful step towards unlocking it.
In early afternoon trading, the shares were flat at 1.04p.