CHAMWE KAIRA
Reconnaissance Energy Africa (ReconAfrica) Ltd has announced an operational update with respect to its exploration activities on Petroleum Exploration Licence 073, onshore Namibia, the appointment of directors and the filing of its financial results for the quarter ended 30 September.
The highlights included the Spud the Naingopo exploration well in the Damara Fold Belt on 7 July, 2024. The well is currently drilling at a depth of 4 000 metres.
The company entered into a definitive agreement with BW Energy Limited, for a 20% working interest in Petroleum Exploration Licence 073, including a US$22 million (US$16 million) equity investment to support a multi-well exploration program, and additional contingent payments of US$125 million (US$171 million), based on meeting certain development, production and cash flow milestones.
Brian Reinsborough, President and CEO of the company stated: “Since the last Annual General Meeting of shareholders, ReconAfrica has undergone significant change in every aspect of how the Company operates. It was another quarter whereby we reduced our general and administrative costs by nearly US$1 million compared to the same period a year ago. We have positioned the Company for success following our joint venture process with BW Energy.”
Reinsborough said the company has nearly completed drilling operations on the Naingopo exploration well, its first Damara Fold Belt well, and have prepared the access roads and well pad for its second well, Kambundu.
The company is also planning the first onshore 3D seismic program ever completed in Namibia. Reinsborough said its technical team are proven oil finders who have created significant value in the past while the company added significant experience at the executive level and added core competencies at the board level.
The company is currently drilling ahead on the Naingopo exploration well, on completion of drilling activities, the company will undertake a comprehensive logging and coring program, and perform a vertical seismic profile of the well.
“We anticipate moving to the Kambundu exploration well following the complete analysis of the results of the Naingopo exploration well.”
He also announced the appointment of Derek Aylesworth, as an independent director. Aylesworth has over 30 years of experience in the Canadian oil and gas industry having previously served as chief financial officer of Toronto Stock Exchange (TSX) listed Seven Generations Energy and TSX and New York Stock Exchange (NYSE) listed Baytex Energy Corporation.
Since September 2023, he is a director of TSX and NYSE listed Greenfire Resources Ltd, and is chair of the audit and reserves committee. Aylesworth is a chartered professional accountant and holds a bachelor of commerce degree. Additionally, Reinsborough, has been elected to the board of directors.
