AfrOil: Canadian firm ReconAfrica progresses exploration drilling in Namibia

Reconnaissance Energy Africa (ReconAfrica) has reported drilling 2,400 metres of the targeted 3,800m at its Niangopo exploration well in petroleum exploration licence 73 (PEL 73) in Namibia.

In an operational update for the quarter ended June 2024, the Toronto-, Frankfurt- and OTCQX-listed company said on August 29 that the drilling, launched in early July, is on time and budget.  The well is targeting 181mn barrels of unrisked prospective light/medium oil resources or 937bn cubic feet (26.5bn cubic metres) of prospective natural gas resources.  It expects to encounter four primary reservoir intervals targeting both oil and natural gas.

“If successful, the well would be a major play opening discovery providing access to multiple drill-ready prospects,” said ReconAfrica.

It signed a farm down deal with BW Energy of Norway for the sale of 20% in the licence. In terms of the agreement, BW Energy invested $22mn in ReconAfrica to back exploration with a commitment for the investor to pour in $171mn more depending on specified development, production and cashflow milestones.

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