CALGARY,
AB, Aug. 6, 2024 /CNW/ - Reconnaissance Energy
Africa Ltd. (the "Company" or "ReconAfrica") (TSXV:
RECO) (OTCQX: RECAF) (Frankfurt:
0XD), announces an operations update with respect to activity
relating to Petroleum Exploration Licence 73 ("PEL 73"),
onshore northeast Namibia.
Brian Reinsborough,
President and CEO commented: "With the Company funded
for our multi-well exploration program and the joint venture
agreement in place with BW Energy, focus returns to operations
associated with the Naingopo exploration well and other activities
on PEL 73. The Naingopo well is currently drilling on schedule and
on budget to a depth of 1,450 metres and we will soon be drilling
into key targeted intervals. We will continue to drill through key
intervals throughout the remainder of the well, which is targeted
to complete drilling in early October with results thereafter. We
are pleased with the performance of our drilling crew and all the
people from our key third party contractors. Elsewhere on PEL 73,
we have started construction on the access road leading to Prospect
P, our second Damara Fold Belt exploration well, which is targeted
to commence drilling in Q4 2024. One year ago this month I began my
journey with the Company, during which, we have implemented
widespread strategic and tactical changes and are currently
executing multiple facets of our high impact exploration program
which we expect to deliver significant value for shareholders."
Exploration Drilling
The Naingopo exploration well has been drilled to a depth of
1,450 metres, with surface casing set at 350 metres and a first
casing string set at 1,200 metres. The well has been tracking to
drilling depth and well cost estimates, with everything on schedule
and plan.
As a reminder, the Naingopo well is targeting 181 million
barrels of unrisked prospective light/medium oil
resources(1) or 937 billion cubic feet of prospective
natural gas resources(1), on a 100% working interest
basis, based on the most recent prospective resources report
prepared by Netherland, Sewell & Associates, Inc. ("NSAI"). The
well is targeting to drill to a depth of approximately 3,800 metres
or 12,500 feet and is expected to encounter four primary reservoir
intervals targeting both oil and natural gas. If successful, the
well would be a major play opening discovery providing access to
multiple drill ready prospects.
Elsewhere on PEL 73, the Company continues to make progress in
the construction of the access road for the second Damara Fold Belt
exploration well, Prospect P, which is expected to start drilling
in the fourth quarter of 2024. Prospect P is targeting 309 million
barrels of unrisked prospective light/medium oil
resources(1) or 1.6 trillion cubic feet of prospective
natural gas resources(1), on a 100% working interest
basis, based on the most recent prospective resources report
prepared by NSAI.
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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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Other Activities on PEL 73
The Company is working with Polaris Natural Resources Ltd. in
testing the use of vibroseis as a source for the potential
acquisition of 3D seismic covering a section of the Kavango Rift
Basin. Current testing is being undertaken to compare results using
the vibroseis as a source compared to previously acquired data
using the acceleration weight drop system. The results of the
testing will provide the data necessary to appropriately plan and
execute a potential 3D seismic program in 2025.
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,
statements with respect to funding for a multi-well exploration
program and seismic program, the completion of the Naingopo well in
October and subsequent results, the acquisition of a 3D seismic
program over the Kavango Rift Basin, the timing of the drilling of
Prospect P, 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
July 29, 2024, 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 Prospects
and Leads located in PEL 73, Kavango Basin, Namibia as of March 31,
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 March 31, 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.
RECONNAISSANCE ENERGY AFRICA LTD.
Tel: 1-877-631-1160 |
www.reconafrica.com
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SOURCE Reconnaissance Energy Africa Ltd.