ReconAfrica says discussions to buy the state-owned Namcor’s 5% stake valued at US$2m are ongoing.
Namcor has a 10% stake in the onshore PEL 73 in the Kavango Basin.
In February 2022, the suspended Namcor managing director, Imms Mulunga, announced the sale of the 5% stake to raise money for future investments.
ReconAfrica announced, in its annual operational update on 21 December, that they are yet to complete the transaction pursuant to the definitive purchase and sale agreement but report that discussions are ongoing.
The Canadian company confirmed that the environment ministry had approved the minor amendments to the approved Environmental Clearance Certificate to reflect the specific locations of the planned wells to be drilled.
ReconAfrica says it is undertaking activities to have a well pad ready for drilling in late Q1 2024 in each focus basin, an oil targeted well in the Rift Basin and a gas focused well in the Damara Fold Belt.
“Some recent basin modelling work undertaken by our technical team has increased the potential for some parts of the Damara Fold Belt to be more oil-prone than previously expected,” the company said.
ReconAfrica also said it will not relinquish a portion of PEL 73 as requested and retains access to the entire licence covering approximately 6.3 million acres in northeast Namibia.
The mines ministry approved ReconAfrica’s Second Renewal Exploration Period, which begins on January 30, 2024, and extends through January 29, 2026, with options for extensions and an additional exploration period available under the Petroleum Act of 1991.
