ReconAfrica says it aims to leverage existing infrastructure for a swift production setup within two-three years of a potential oil discovery.
The development could position the company to be the first oil producer in the Damara Fold Basin.
This comes as the exploration company has begun major construction work to build access roads leading to their well site in the Damara Fold Belt region as recent work has identified promising evidence for oil.
According to ReconAfrica CEO Brian Reinsborough, drilling is scheduled to begin in June 2024, targeting both exploration and appraisal wells.
“Our drilling teams are now in Namibia with the Jarvie-1 drilling rig undergoing routine maintenance and certification ahead of its planned move to the well location in the first week of June 2024,” said Reinsborough.
The drilling campaign is crucial for confirming ReconAfrica’s findings and determining the commercial viability of their oil prospects.
“We think we had a great shot of finding oil in the Damara Fold belt. For the longest time, it was seen as a gas play. And we’ve put a lot of work in the last three or four months to really identify solid lines of evidence for oil as data calibrated. Now, oil changes the calculus of cycle time. We plan to take advantage of existing infrastructure, roads and railway to get an early production system going,” he said.
He added that the well holds significant potential, with targets reaching up to 163 million barrels of oil or 843 billion cubic feet of natural gas.
Following this, a second well (Prospect P) is planned for the fourth quarter of 2024, with drilling contingent on the results of the first well.
He also said that ReconAfrica is actively preparing for the drilling programme. Key personnel with drilling expertise are rejoining the company and will be deployed to Namibia in the coming months.
Furthermore, essential oilfield service contracts have been awarded and drilling equipment is being shipped to the site. The company is also seeking bids from interested third parties, with a focus on maximising value for shareholders and stakeholders.
Reinsborough also highlighted the company’s recent financing success, which allows it to proceed with drilling the well. He also acknowledged the completion of initial clearing and preparation work at the drill site.
“We are working collaboratively with our partner NAMCOR and the Ministry of Mines and Energy to finalise the drilling programme and future plans for data acquisition,” he said.
ReconAfrica is a Canadian oil and gas company engaged in the opening of the newly discovered deep Kavango Sedimentary Basin in the Kalahari Desert of northeastern Namibia and northwestern Botswana.
