ReconAfrica says the Naingopo exploration well is drilling beyond 2,400 metres or 7,875 feet, with surface casing set at 350 metres and a first casing string set at 1,200 metres.
The well is targeted to be drilled to a depth of approximately 3,800 metres or 12,500 feet and is expected to encounter four primary reservoir intervals containing oil and natural gas.
The company will soon undertake the next set of logging and coring activities and setting the second casing string, which is targeted at approximately 2,600 metres or 8,530 feet.
“The well has been tracking drilling depth and well cost estimates, and it is on schedule and planned with the primary objectives beneath our current drilling depth,” ReconAfrica said in its quarterly financial report.
It added that if successful, the well would be a significant play-opening discovery, providing access to multiple drill-ready prospects.
ReconAfrica is also progressing with constructing the access road for the second Damara Fold Belt exploration well, Prospect P on PEL 73.
Based on the Netherland, Sewell & Associates, Inc. report, Prospect P is targeting 309 million barrels of unrisked prospective light/medium oil resources or 1.6 trillion cubic feet of prospective natural gas resources, on a 100% working interest basis.
The well is targeting to drill to a depth of approximately 3,800 metres or 12,500 feet and is expected to encounter four primary reservoir intervals targeting both oil and natural gas.
The well would be a significant play-opening discovery if successful, providing access to multiple drill-ready prospects.
The 20% working interest BW Energy Limited acquired in PEL 73 made the two-well drilling program possible.
BW Energy made a $22 million strategic equity investment in the company to support the program and made additional contingent payments of $171 million based on meeting certain development, production, and cash flow milestones.
ReconAfrica also raised gross proceeds of US$38.8 million via an underwritten public offering in July 2024 and another US$17.5 million via a bought deal public offering in April 2024.
The company says it reduced the general and administration costs to US$3.2 million from US$4.2 million for the three months ended June 30, 2024, compared to June 30, 2023.
From July 30, 2024, until August 6, 2024, ReconAfrica conducted a Vibroseis seismic parameter test to establish the best vibrator sweep parameters and number of vibrators in a fleet and to investigate field data processed results for future seismic projects on PEL 73.
Six runs of a six-km line with different vibrator and sweep configurations were completed to reshoot a 23 km line previously shot with an Accelerated Weight Drop source.
The initial field data processing results from the 6 km line identified the best vibrator and sweep configuration for the 23 km test line. After shooting the 23 km line, the results were processed to a brute stack and compared to the previous Accelerated Weight Drop processed data, showing marked improvement in data quality.
Individual Vibroseis and Accelerated Weight Drop shot records were also analyzed, and similar improvements were observed.
ReconAfrica CEO Brian Reinsborough said the Naingopo exploration well drilling is on time and budget.
Reinsborough also said the seismic velocities are running faster than modelled, hence, reservoirs are coming in deeper than predicted, with all primary reservoir targets below the current drilling depth.
“We continue progressing with the road construction work before getting the well pad ready for the Kambundu (Prospect P) exploration well, which is targeted to start drilling in the fourth quarter,” he said.
ReconAfrica will publish its Sustainability Report next week.
Reinsborough said this report reflects ReconAfrica’s commitment and efforts to ensure that its exploration activities are balanced with sustainable management practices and stakeholder engagement under our environmental, social and governance programs.
