LONDON-BASED oil and gas company Reconnaissance Energy Africa Limited has been granted another two years to explore for oil in two Kavango regions of Namibia, at an estimated cost of N$143 million.
According to an announcement made late last year, the company said the mines and energy minister had renewed their exploration phase of the licence which is expected to continue until January 2022.
Jay Park, the chief executive officer, said “ReconAfrica’s exploration and development plans for the Kavango Basin extends well into the future, and this first renewal period reflects the company’s commitment to drill at least two wells during this phase. It also reflects the ministry of mines’ support for our prior and continuing work in the Kavango Basin”.
ReconAfrica holds the entire Kavango Basin in Namibia under Petroleum Exploration Licence 73, original oil-in-place (OOIP) at 12 billion barrels, of which it is yet to be determined whether it is technically recoverable.
According to Park, ReconAfrica owns 90% interest in Petroleum Exploration Licence 73, while Namibia’s state-owned oil company, National Petroleum Corporation of Namibia holds the remaining 10%.
The company’s chief executive officer said the Kavango Basin deepens to the east and ReconAfrica expects to identify thicker thermally mature marine permian shales.
“Success with ReconAfrica’s three-well programme will bring the licence to an ‘undeveloped’ stage. In all, the basin is optimally conducive to a functioning petroleum system that must be drilled,” Park said.
The company said they have engaged Henderson Rigs of Houston, Texas, for the purpose of procuring a North American drilling rig and ancillary equipment, specifically designed for Namibian logistics and drilling huge depths of the Kavango Basin.
In order to finalise the purchase of a drilling rig, ReconAfrica made a non-brokered private placement of roughly N$21,8 million.
Bill Cathey, the president and chief geoscientist of Earthfield Technology said: “Nowhere in the world is there a sedimentary basin this deep that does not produce hydrocarbons”.
Email: lazarus@namibian.com.na
Twitter: @Lasarus_A
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