88 Energy Exits Texas Operations to Focus on Namibia Exploration
88 Energy Ltd has agreed to sell its 75% non-operated working interest in Project Longhorn, a package of producing oil and gas assets in the Permian Basin, Texas, for $3.25 million. The sale to operator Lonestar I reflects a strategic shift toward higher-impact, exploration-led activities in Alaska and Namibia.
Since acquiring its stake in 2022, 88 Energy received approximately $6.1 million in cash distributions from Longhorn, helping fund exploration and corporate overheads. However, the company opted not to participate in new multi-well drilling programs that would require about $2 million per well investment.
Managing Director Ashley Gilbert stated that the divestment aligns with the company’s disciplined capital management approach and focus on assets with potential for outsized returns. Proceeds will be redeployed into core exploration programs in Alaska, including Projects Leonis and Phoenix, as well as early-stage work onshore Namibia.
In its 2025 half-year report, 88 Energy will recognize an impairment of around $10 million, including previously valued undeveloped resources at Longhorn that would have required $18 million in future capital investment to unlock.
Source: namibiaoilandgas.com