Reconnaissance Energy Africa Ltd (Recon Africa) has provided several key updates, including exploration progress at the Naingopo well at PEL 73 in Namibia.
The company said it has drilled the well beyond 2,400 meters, targeting to drill to a depth of approximately 3,800 metres.
“Operationally, things remain on track, with the Naingopo exploration well drilling, on time and on budget,” Recon Africa CEO Brian Reinsborough said.
“The seismic velocities are running faster than modeled, hence reservoirs are coming in deeper than predicted, with all primary reservoir targets below the current drilling depth.”
Road construction is advancing for a second well, Prospect P, where drilling is slated to kick off later in 2024.
Recent financial highlights included raising US$38.8 million in July and US$17.5 million in April through public offerings and reducing general and administrative costs by US$1 million for the three months ended June 30, 2024, compared to the year-ago quarter.
It has also entered a farm-down agreement with BW Energy, selling a 20% stake in its exploration license for US$22 million, with additional potential payments of US$171 million based on future milestones.
“Over the past few months, we have improved the company’s balance sheet which enables us to execute our planned multi-well exploration drilling campaign through the completion of two equity financings and our strategic joint venture partnership with BW Energy,” Reinsborough said.
“Through these transactions, the company has maximized capital upfront which allows flexibility to execute our program, and positions us with significant capital available for appraisal, evaluation and development activities.”
