ReconAfrica has agreed with Agência Nacional de Petróleo, Gás e Biocombustíveis to explore the Etosha-Okavango basin, located onshore in southeastern Angola.
Agência Nacional de Petróleo, Gás e Biocombustíveis is Angola’s national concessionaire and regulator.
The agreement complements its activities in Namibia and highlights the potential of the Damara Fold Belt and Rift Basin by adding 5.2 million acres in Angola to the existing 6.3 million acres in Namibia in the highly prospective Damara Fold Belt and Rift Basin exploration plays.
Additionally, the agreement is a strategic addition to ReconAfrica’s asset portfolio, which creates an opportunity for early entry into onshore Angola at a low cost with minimal work commitments.
ReconAfrica will have an 80% working interest, and Sonangol will have a 20% working interest ownership in the agreement area.
According to the agreement, ReconAfrica will initiate and coordinate geological studies, conduct a regional oil and gas seep study, and plan for a 2D seismic program, as well as perform detailed geochemical analysis and sampling of any oil and gas seeps identified within the MOU area, over 24 months.
ReconAfrica’s CEO, Brian Reinsborough, says this significant transaction underscores the company’s strategic focus and complements its activities in Namibia, highlighting the potential within the Damara Fold Belt and Rift Basin plays.
Reinsborough also says the agreement aligns with ReconAfrica’s focus on creating significant value for shareholders as an early mover into prospective hydrocarbon basins with significant acreage positions.
“The encouraging technical results from our recent Naingopo exploration well on PEL 73 onshore Namibia have strengthened our belief in the significant hydrocarbon potential of the Damara Fold Belt play.
“Our regional geological models indicate that the promising Fold Belt play, known for hosting some of the world’s largest fields and covering extensive areas, likely extends into Angola,” Reinsborough says.
According to Reinsborough, the recent regulatory reforms make Angola an attractive jurisdiction for new oil and gas exploration.
He further says ReconAfrica looks forward to implementing its ESG and community outreach programs and creating employment for the people of the Okavango region.
