88 Energy Ltd (AIM:88E, ASX:88E, OTCQB:EEENF, FRA:POQ) shares climbed on Tuesday after it told investors that its Namibia joint venture has applied to move PEL 93 into its next two-year exploration phase, putting at least one exploration well on the work programme as nearby drilling provides further evidence of hydrocarbons in the Owambo Basin.
The application covers a Second Renewal Exploration Period starting on 3 October 2026 and follows integration of around 6,000 line-kilometres of airborne geophysical data.
That work has confirmed Prospect 9 as the licence’s highest-ranked drilling opportunity, with operator Monitor Exploration classifying the large anticlinal structure as drill-ready.
Regional momentum has also strengthened, with ReconAfrica’s Kavango West 1X well, around 100km east of PEL 93, flowing hydrocarbons to surface from both the Elandshoek and Huttenberg formations.
88 Energy said the results provide further evidence of a working petroleum system and help de-risk hydrocarbon charge and prospectivity across PEL 93.
The joint venture proposes relinquishing 50% of the existing roughly 18,500-square-kilometre licence, concentrating future activity on Prospect 9 and other priority exploration fairways.
It has proposed minimum expenditure of US$10 million over the renewal period, with 88 Energy’s share estimated at around US$2.67 million including its associated carry obligations.
88 Energy holds a fully earned 20% non-operated interest in PEL 93, alongside operator Monitor Exploration with 55%, NAMCOR with 10% and Legend Oil Namibia with 15%. Entry into the renewal period and the work programme remain subject to approval from the Namibian authorities.
In London, 88 Energy shares climbed more than 7% on Tuesday, changing hands at 1.12p.
