CALGARY,
AB, July 8, 2024 /CNW/ - Reconnaissance Energy
Africa Ltd. (the "Company" or "ReconAfrica") (TSXV: RECO) (OTCQX:
RECAF) (Frankfurt: 0XD) and its
joint venture partner NAMCOR (the state oil company of Namibia), announce the spudding of the
Naingopo exploration well on Petroleum Exploration Licence 73 ("PEL
73"), onshore northeast Namibia.
Additionally, the Company announces a joint venture update as well
as a warrant exercise update.
Brian Reinsborough,
President and CEO commented: "Our operations teams spud the
well on July 7, 2024. We are
extremely excited to be drilling this high impact Damara Fold Belt
well that our technical and operations teams have been planning
over the past 11 months, since I joined ReconAfrica. The Naingopo
well represents the first well in a multi-well exploration drilling
campaign on PEL 73. The well is anticipated to reach total depth of
3,800 metres (12,500 feet), and take 90 days to drill. This is a
significant play opening well which may unlock a total potential
resource of over 3.1 billion barrels of oil or 18 trillion cubic
feet of natural gas based on the most recent prospective resource
report prepared by Netherland, Sewell & Associates Inc.
("NSAI"), dated March 12,
2024(1)."
Chris Sembritzky, Senior VP
of Exploration commented: "The Naingopo exploration
well is the first well to test the Damara Fold Belt play. In the
event of success, the well would unlock significant oil and natural
gas potential from our additional three prospects and 20 leads that
have been mapped and defined. The Naingopo well is expected to test
multiple reservoir intervals of which four are included in our
third party resource report from NSAI."
First Damara Fold Belt Well - Naingopo Exploration
Well
The Company spud the Naingopo exploration well in the Damara
Fold Belt onshore PEL 73 in northeast Namibia on July 7,
2024. The well will be drilled to a planned total depth of
approximately 3,800 metres (12,500 feet), and is expected to
encounter multiple reservoir intervals targeting both oil and
natural gas. The Naingopo well is targeting 163 million barrels of
unrisked prospective oil resources or 843 billion cubic feet of
unrisked prospective natural gas resources, net to ReconAfrica,
based on the most recent prospective resources report prepared by
Netherland, Sewell & Associates, Inc. ("NSAI") dated
March 12, 2024, and available on the
Company's website (the "NSAI Report")(1).
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(1)
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There is no certainty
that any portion of the resources will be discovered. If
discovered, there is no certainty that it will be commercially
viable to produce any portion of the resources. Prospective
resources are those quantities of oil estimated, as of a given
date, to be potentially recoverable from undiscovered accumulations
by application of future development projects. Prospective
resources have both an associated chance of discovery and a chance
of development. Prospective resources are the arithmetic sum of
multiple probability distributions. Unrisked prospective
resources are estimates are the volumes that could reasonably be
expected to be recovered in the event of the discovery and
development of these prospects.
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Joint Venture Update
The Company continues to progress the farm out joint venture
process which we expect to conclude soon.
Warrant Exercise Update
In the past month, the Company has received proceeds of
approximately $1.9 million from the
exercise of warrants. With a recent share price of $1.75, the Company has potential proceeds of
approximately $35 million from in the
money share purchase warrants.
About ReconAfrica
ReconAfrica is a Canadian oil and gas company engaged in the
exploration of the Damara Fold Belt and Kavango Rift Basin in the
Kalahari Desert of northeastern Namibia and northwestern Botswana, where the Company holds petroleum
licenses comprising ~8 million contiguous acres. In all aspects of
its operations ReconAfrica is committed to minimal disturbance of
habitat in line with international standards and will implement
environmental and social best practices in all of its project
areas.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
Cautionary Note Regarding Forward-Looking Statements:
Certain statements contained in this press release constitute
forward-looking information under applicable Canadian, United States and other applicable securities
laws, rules and regulations, including, without limitation, the
anticipated depth of the Naingopo well, the time taken to drill the
Naingopo well, statements with respect to prospective resources,
the drilling of additional prospects or leads, the number of
expected reservoir intervals to be encountered in the Naingopo
well, volumes of potential unrisked oil or natural gas prospective
resources for the Naingopo well, the timing of completion of a
joint venture transaction or whether a joint venture transaction
will be executed or completed, the potential proceeds from the
exercise of in the money share purchase warrants, and statements
with respect to the Company's commitment to minimal disturbance of
habitat, in line with best international standards and its
implementation of environmental and social best practices in all of
its project areas. These statements relate to future events or
future performance. The use of any of the words "could", "intend",
"expect", "believe", "will", "projected", "estimated" and similar
expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on ReconAfrica's current belief or
assumptions as to the outcome and timing of such future events.
There can be no assurance that such statements will prove to be
accurate, as the Company's actual results and future events could
differ materially from those anticipated in these forward-looking
statements as a result of the factors discussed in the "Risk
Factors" section in the Company's annual information form dated
December 4, 2023, available under the
Company's profile at www.sedarplus.ca. Actual future results
may differ materially. Various assumptions or factors are typically
applied in drawing conclusions or making the forecasts or
projections set out in forward-looking information. Those
assumptions and factors are based on information currently
available to ReconAfrica. The forward-looking information contained
in this release is made as of the date hereof and ReconAfrica
undertakes no obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws.
Because of the risks, uncertainties and assumptions contained
herein, investors should not place undue reliance on
forward-looking information. The foregoing statements expressly
qualify any forward-looking information contained herein.
Disclosure of Oil and Gas Information:
The report of Netherland, Sewell & Associates, Inc.
("NSAI") entitled "Estimates of Prospective Resources to the
Reconnaissance Energy Africa Ltd. Interests in Certain
Opportunities Located in Damara Fold and Thrust Belt Play Area in
Petroleum Exploration Licence 73, Kavango Basin, Namibia as of February
29, 2024" (the "NSAI Report") and the prospective resource
estimates contained therein and in this press release were prepared
by NSAI, an independent qualified reserves evaluator, with an
effective date of February 29, 2024.
The NSAI Report was prepared in accordance with the definitions and
guidelines of the Canadian Oil and Gas Evaluation Handbook prepared
jointly by the Society of Petroleum and Engineers (Calgary Chapter)
(the "COGE Handbook") and the Canadian Institute of Mining,
Metallurgy & Petroleum and National Instrument 51-101 –
Standards of Disclosure for Oil and Gas Activities ("NI 51-101").
For additional information concerning the risks and the level of
uncertainty associated with recovery of the prospective resources
detailed herein and in the NSAI Report, the significant positive
and negative factors relevant to the prospective resources
estimates detailed herein and in the NSAI Report and a description
of the project to which the prospective resources estimates
detailed herein and in the NSAI Report applies are contained within
the NSAI Report, a copy of which has been filed with the Canadian
Securities Administrators and is available under the Company's
issued profile on SEDAR+ at www.sedarplus.ca.
The prospective resources shown in the NSAI Report have been
estimated using probabilistic methods and are dependent on a
petroleum discovery being made. If a discovery is made and
development is undertaken, the probability that the recoverable
volumes will equal or exceed the unrisked estimated amounts is 90
percent for the low estimate, 50 percent for the best estimate, and
10 percent for the high estimate. Low estimate and high estimate
prospective resources have not been included in the NSAI Report.
For the purposes of the NSAI Report, the volumes and parameters
associated with the best estimate scenario of prospective resources
are referred to as 2U. The 2U prospective resources have been
aggregated beyond the prospect and lead level by arithmetic
summation; therefore, these totals do not include the portfolio
effect that might result from statistical aggregation. Statistical
principles indicate that the arithmetic sums of multiple estimates
may be misleading as to the volumes that may actually be
recovered.
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SOURCE Reconnaissance Energy Africa Ltd.