Reconnaissance Energy Africa is gearing to start drilling in June the first Damara Fold Belt exploration well, Naingopo (Prospect L) on Petroleum Exploration Licence 73 (PEL 73), onshore northeast Namibia
Water wells have been drilled, and currently the well site is undergoing road connectivity works to make it accessible for drilling activities to begin.
Post completion of civil works, the Jarvie-1 drilling rig will be prepared in May for mobilisation to the site. This promptness aligns with the company's commitment to a multi-well, high impact exploration programme in Namibia following its exit from Mexico.
A relevant prospective resources report by Netherland, Sewell & Associates points at a production capacity of 163 mn barrels of unrisked prospective oil resources or 843 bn cu/ft of unrisked prospective natural gas resources from the first Damara well. Drilling is expected to reach a depth of approximately 12,500 ft or 3,800 m and is projected to encounter four primary reservoir intervals targeting both oil and natural gas. It is a work of about 90 days, including three sets of logging operations, coring and reservoir testing. Drilling personnel will be reaching Namibia in May and June.
While the primary contractor arranged equipment and personnel, ReconAf has awarded critical oilfield services contracts, and drilling tools and equipment have been purchased to be shipped to Namibia this month.
If all activities go according to plan and Naingopo yeilds prospective results, the company will move on to drill the second Damara Fold Belt well in the fourth quarter of 2024. The second well potentially consists 278 mn barrels of unrisked prospective oil resources, or 1.5 tn cu/ft of unrisked prospective natural gas resources, based on the NSAI Report.
The company has provided interested third parties with bid instructions and guidelines. Initial bids are expected this month and will be reviewed and negotiated as necessary by management. Only strong bids that enhance shareholder and stakeholder value will be considered.
NAMCOR, Ministry of Mines and Energy to approve drilling programme
Brian Reinsborough, president and CEO, said, "With our recently completed upsized bought deal financing we are now in a position to commence drilling of the Naingopo exploration well (also referred to as Prospect L), in the Damara Fold Belt. Demining and brush clearing activities on Prospect L were completed in March 2024. Heavy equipment and key personnel are now in the field with construction of the well pad and access roads now commencing. We are meeting with our partner NAMCOR and the Ministry of Mines and Energy this week to finalise the detailed drilling programme and future drilling and subsurface data acquisition plans. We thank them for their continued support and are encouraged by the overwhelming support from the people in Namibia, particularly those in the Kavango East and Kavango West regions. We have recently met with both governors of the Kavango region, who continue to express gratitude for Recon's safe activities and community involvement. To date we have employed over 1,350 people from the region and our 36 community water wells have positively impacted the lives of over 10,000 people. We look forward to employing more people from the local communities now that our operations have once again progressed to the exploration and appraisal drilling phase."
