Reconnaissance Energy Africa (ReconAfrica) and its joint venture partner NAMCOR (the state oil company of Namibia), have announced the spudding of the Naingopo exploration well on Petroleum Exploration Licence 73 ('PEL 73'), onshore northeast Namibia. Additionally, the Company announces a joint venture update as well as a warrant exercise update.
Naingopo Exploration Well Schematic (CNW Group/Reconnaissance Energy Africa Ltd.)
Brian Reinsborough, President and CEO commented: 'Our operations teams spud the well on July 7, 2024. We are extremely excited to be drilling this high impact Damara Fold Belt well that our technical and operations teams have been planning over the past 11 months, since I joined ReconAfrica. The Naingopo well represents the first well in a multi-well exploration drilling campaign on PEL 73. The well is anticipated to reach total depth of 3,800 metres (12,500 feet), and take 90 days to drill. This is a significant play opening well which may unlock a total potential resource of over 3.1 billion barrels of oil or 18 trillion cubic feet of natural gas based on the most recent prospective resource report prepared by Netherland, Sewell & Associates Inc. ('NSAI'), dated March 12, 2024(1).'
Chris Sembritzky, Senior VP of Exploration commented: 'The Naingopo exploration well is the first well to test the Damara Fold Belt play. In the event of success, the well would unlock significant oil and natural gas potential from our additional three prospects and 20 leads that have been mapped and defined. The Naingopo well is expected to test multiple reservoir intervals of which four are included in our third party resource report from NSAI.'
First Damara Fold Belt Well - Naingopo Exploration Well
The Company spud the Naingopo exploration well in the Damara Fold Belt onshore PEL 73 in northeast Namibia on July 7, 2024. The well will be drilled to a planned total depth of approximately 3,800 metres (12,500 feet), and is expected to encounter multiple reservoir intervals targeting both oil and natural gas. The Naingopo well is targeting 163 million barrels of unrisked prospective oil resources or 843 billion cubic feet of unrisked prospective natural gas resources, net to ReconAfrica, based on the most recent prospective resources report prepared by Netherland, Sewell & Associates, Inc. ("NSAI") dated March 12, 2024, and available on the Company's website (the "NSAI Report")(1).
Joint Venture Update
The Company continues to progress the farm out joint venture process which it expects to conclude soon.
Warrant Exercise Update
In the past month, the Company has received proceeds of approximately $1.9 million from the exercise of warrants. With a recent share price of $1.75, the Company has potential proceeds of approximately $35 million from in the money share purchase warrants.
Source: ReconAfrica via PRNewswire
