ReconAfrica has intensified its exploration activities in Namibia with the acquisition of over 5,000 square kilometres of enhanced full tensor gravity data.
Additionally, the company has expanded its 2D seismic programme to encompass a total of 2,767 kilometres. These advancements are part of the company’s broader strategy to unlock the potential of the Damara Fold Belt and Kavango Rift Basin in Namibia.
The seismic was conducted during the 2022 and 2023 seismic campaign.
The company obtained an Environmental Clearance Certificate for the drilling of 12 exploration and appraisal wells in PEL 73.
ReconAfrica’s President and CEO Brian Reinsborough said the company has completed the technical evaluation of the entire exploration inventory to understand the potential of the Damara Fold Belt and Kavango Rift Basin plays.
“Since I joined the company a year ago, we have delivered on several major strategic objectives that I set out last fall. One of those objectives was to generate a portfolio of high impact drill ready prospects,” he said
According to the company’s annual filings and corporate update, it had reopened the virtual data room, which contained a detailed assessment of the exploration inventory, including drill-ready prospects.
The company selected the first two drilling locations and initiated preparations for well site operations. The Naingopo exploration well in the Damara Fold Belt had been spudded on 7 July 2024, targeting 181 million barrels of unrisked prospective oil resources.
Moreover, civil works for Prospect P, including clearing vegetation, removing mines, and constructing roads, are ongoing. The company anticipates spudding Prospect P in the fourth quarter of 2024.
ReconAfrica highlighted findings from the NSAI Report, which indicated over 19.6 billion barrels of undiscovered original oil-in-place.
This included 3.4 billion barrels of unrisked prospective oil resources in the Damara Fold Belt basin and 0.5 billion barrels in the Kavango Rift Basin.
“This goal was achieved and has led us to the recent spud of the highly anticipated Naingopo exploration well, the first well in our multi-well exploration to test the Damara Fold Belt. Operationally, the well is drilling as expected with results anticipated in October,” Reinsborough said.
He further explained that the company had raised gross proceeds of approximately N$115.14 million (C$8.7 million) through equity offerings in 2023.
The company further disclosed raising N$228.86 million (C$17.3 million) in April 2024 via a bought deal public offering.
Additionally, it announced plans for an underwritten public offering of N$462.7 million (C$35 million) in July 2024.
ReconAfrica also entered into a memorandum of understanding with BW Energy Limited for a 20% working interest in PEL 73.
This agreement involved an equity investment of N$290.64 million (US$16 million or C$22 million) to support a multi-well exploration programme.
The company also mentioned potential additional contingent payments of up to N$2.26 billion (US$125 million or C$171 million) based on specific milestones.
The total potential exposure of this deal was estimated at N$2.55 billion (US$141 million or C$193 million).
The company reported a net income of N$542.82 million (C$41 million) for the year ended 31 March 2024, translating to N$2.64 per share (C$0.20 per share).
This significant profit was attributed to the sale of Renaissance Oil Corporation in the fourth quarter of 2023.
“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 programme,” Reinsborough said.
ReconAfrica is an oil and gas exploration company focused on the exploration and development of the petroleum systems of the Kavango Basin and the adjacent areas in northeastern Namibia, Botswana and southern Angola.
