By Staff Reporter
WINDHOEK, July 14 — Reconnaissance Energy Africa (ReconAfrica) has recently received an environmental clearance certificate (ECC) to proceed with drilling an additional 12 wells in its northeastern license area in Namibia. The ECC grants ReconAfrica permission to conduct exploration and appraisal activities in the Kavango Basin from July 2023 until July 2026.
The primary objective of the drilling program is to identify commercially viable quantities of hydrocarbons. ReconAfrica’s initial three stratigraphic test wells yielded promising evidence of such reserves. The company had previously expressed its intent to secure a farm-in partner prior to commencing drilling operations.
During a recent appearance at the Global Energy Week in London, Grayson Andersen, the representative from ReconAfrica’s Investor Relations team, highlighted the immense potential of the project but also acknowledged the numerous challenges they face. Andersen emphasized that limited capital and the absence of revenue necessitate continuous engagement with capital markets for financial support. Addressing these challenges, he stated that a farm-out arrangement could help overcome these limitations.
Andersen further commented on the significant obstacles posed by various groups and non-governmental organizations (NGOs) to ReconAfrica’s operations. He argued that these actions hinder the establishment of a sustainable and economically beneficial oil and gas industry, which every developed country enjoys. However, ReconAfrica remains undeterred and is confident in overcoming these challenges due to the uniqueness of its project.
ReconAfrica’s assets in Namibia consist of a rift basin and the Damara Fold Belt, holding a potential 14 trillion cubic feet of gas. Andersen expressed optimism, stating that their operations continue to improve, and while offshore ventures will provide revenue, the long-term benefits of an onshore modern oil and gas industry will bring generational changes to the country.
In July, Netherland, Sewell & Associates is expected to provide an annual update on ReconAfrica’s prospective resources for both its play types, further enhancing our understanding of the company’s resource potential.
The granting of the ECC to ReconAfrica marks a significant milestone for the company, enabling them to progress with their drilling program and potentially make a substantial discovery in the Kavango Basin. Despite encountering challenges from environmental groups and NGOs, ReconAfrica remains confident in its ability to overcome these obstacles. They firmly believe that the potential benefits of establishing an onshore oil and gas industry in Namibia outweigh the challenges they face.
We eagerly anticipate the annual update from Netherland, Sewell & Associates, which will provide valuable insights into the size and potential of ReconAfrica’s resource base. Overall, the ECC approval represents a positive development for ReconAfrica, as it allows them to move forward with their drilling program and explore the significant potential of the Kavango Basin.
