ReconAfrica plans to spud Prospect P in the fourth quarter of 2024, following the completion of the Naingopo exploration well on PEL 73.
The company spudded the Naingopo exploration well in the Damara Fold Belt on July 7, 2024.
The Naingopo well targets 181 million barrels of unrisked prospective oil resources on a 100% working interest basis, based on the NSAI Report.
ReconAfrica says the results of the Naingopo exploration well drill should be expected by October 2024.
Already, ReconAfrica is debushing, demining and constructing the road at Prospect P in the Damara Fold Play.
An NSAI report highlighted over 19.6 billion barrels of undiscovered original oil-in-place, consisting of 3.4 billion barrels of unrisked prospective oil resources in the Damara Fold Belt basin from 19 prospects on a 100% working interest basis.
The report highlighted 0.5 billion barrels of unrisked prospective oil resources in the Kavango Rift Basin from 6 prospects on a 100% working interest basis.
ReconAfrica has acquired enhanced complete tensor gravity surveys totalling over 5,000 km2 and a phase 2 extension of the 2D seismic program, bringing the total acquired 2D seismic to 2,767 km.
According to the annual filings and corporate update, ReconAfrica completed the technical evaluation of the entire exploration inventory to understand the potential of the Damara Fold Belt and Kavango Rift Basin plays.
The Canadian company also says it re-opened the virtual data room which included a comprehensive assessment of the entire exploration inventory, including drill-ready prospects and an integration of that work into the farm-out joint venture process.
The update adds that ReconAfrica selected the first two drilling locations and began the process required for well site preparation and procurement for operations.
ReconAfrica’s CEO Brian Reinsborough says
2023 marked a turning point since he joined the company a year ago.
Reinsborough says Reconafrica delivered on several major strategic objectives set out last fall.
He says one of those objectives was to generate a portfolio of high impact drill ready prospects.
“This goal was achieved and led us to the recent spud of the highly anticipated Naingopo exploration well, the first in our multi-well exploration to test the Damara Fold Belt,” he says.
Operationally, Reinsborough explains, the well is drilling as expected, with results anticipated for October.
We recently executed a MoU from our farm-out joint venture process with BW Energy. The MoU provided for BW Energy to make a strategic equity investment into ReconAfrica for US$16 million while also investing directly at the asset level, with a 20% working interest in PEL 73 in exchange for US$125 million in payments based on achieving certain milestones concerning commerciality, first production and cash flow milestones.
“This transaction maximizes cash upfront for exploration drilling and provides significant cash for development expenditures on success while retaining a high level of working interest for ReconAfrica and its shareholders.
“Our financing strategy has been executed as planned, with two successful equity financings undertaken in 2024, positioning us to execute our fully funded planned exploration program,” he adds.
The company also handed over 10 more solar-powered community water wells to the agriculture ministry.
This brings the total so far to 36.
