ReconAfrica has announced the acceleration of drilling into Q2 2025 and a corporate update
Brian Reinsborough, President and CEO commented: 'We have made great progress in getting Prospect I ready to drill and , as a result, we are accelerating the spud date into Q2 2025. Our in-country teams have commenced community engagement, surveying, debushing and demining activities, which will be followed by construction of a 10 kilometre road and drill pad site.
'Prospect I is one of the largest mapped structures in the Damara Fold Belt, is well imaged from 2D seismic, and demonstrates a four-way dip closure in which we expect to penetrate over 1,500 metres of Otavi reservoir. Drilling at the Prospect I location has been significantly derisked by the results of our first Damara Fold Belt well, Naingopo, which encountered reservoir in the Otavi carbonates, hydrocarbon shows and oil to surface. We are excited to drill this follow-on exploration well as we continue to look to unlock the significant hydrocarbon potential of the Damara Fold Belt.'
Operational Update
ReconAfrica continues to pursue activities relating to the drilling of Prospect I. To date, initial surveying activity has been completed, with debushing activities ongoing and demining activities set to be undertaken in the coming weeks. As a result of the progress to date, the Company has accelerated the spud date for Prospect I to Q2 2025.
Prospect I is targeting 365 million barrels of unrisked and 32 million barrels of risked prospective light/medium oil resources, or 1.7 trillion cubic feet of unrisked and 126 billion cubic feet of risked prospective natural gas resources, on a 100% working interest basis, based on the most recent prospective resources report prepared by Netherland, Sewell, & Associates, Inc. ('NSAI'), an independent qualified reserves evaluator . Prospect I is noted as location 63 in the NSAI report.
Corporate Update
As previously announced in a press release dated February 28, 2024, following mediation with the plaintiffs in both the U.S. Action and the Canadian Action (as defined in the February 28, 2024 press release), the Company announced that the parties entered into a global settlement agreement to resolve both cases. The Canadian Action received final court approval on June 20, 2024 . The U.S. Action received final court approval on December 30, 2024 . This matter was fully resolved within the Company's insured coverage limits.
Source: ReconAfrica
