Source: ReconAfrica
Reconnaissance Energy Africa Ltd (ReconAfrica) said it had made progress in its exploration efforts within Petroleum Exploration Licence 073 (PEL 73) in Namibia over the most recent quarter.
During the three-month period to end September 30, 2024, drilling at the Naingopo exploration well in the Damara Fold Belt reached a depth of 4,000 meters (13,125 feet).
Upon completion, the company will execute a comprehensive logging and coring program, along with a vertical seismic profile, to assess potential oil or natural gas discoveries. Results will be analyzed and shared once the extensive logging and sample testing are complete.
Preparations for the Kambundu exploration well are also advancing, with road and well site construction nearly finalized. Drilling on the Kambundu site will commence after analyzing the Naingopo well results. Additionally, ReconAfrica is planning Namibia’s first-ever onshore 3D seismic program, aiming to unlock further exploration opportunities in the region.
Significant cost-efficiency measures have also been implemented, reducing general and administrative expenses by C$1 million compared to the same period last year. The company further strengthened its financial position through a partnership with BW Energy Limited, which acquired a 20% working interest in Petroleum Exploration Licence 073.
This agreement includes a C$22 million equity investment to fund a multi-well exploration program. ReconAfrica’s strategic initiatives reinforce its commitment to efficient operations and expanded exploration in Namibia.
“ReconAfrica has undergone significant change in every aspect of how the company operates.,” said CEO Brian Reinsborough.
“We have positioned the company for success following our joint venture process with BW Energy. We have nearly completed drilling operations on the Naingopo exploration well, our first Damara Fold Belt well, and have prepared the access roads and well pad for our second well, Kambundu. We are also planning the first onshore 3D seismic program ever completed in Namibia.”
Reinsborough also highlighted the technical team, calling them “proven oil finders.”
ReconAfrica also expanded its leadership team, appointing Derek Aylesworth, a veteran in the Canadian oil and gas industry to its board. Aylesworth, a former CFO of Baytex Energy Corporation and Seven Generations Energy, brings over 30 years of industry experience.
CEO Reinsborough was also appointed to the board.
Other milestones include completing the company’s first sustainability report, securing the renewal of Petroleum Exploration Licence 001 in Botswana through 2028, and listing on the Namibian Stock Exchange.
The company plans to release results from the Naingopo well after comprehensive analysis.
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