ReconAfrica is a junior oil and gas company engaged in the exploration and development of oil and gas in Namibia.
ReconAfrica holds a 90% interest in a petroleum exploration licence in northeast Namibia which covers the entire Kavango sedimentary basin. The exploration licence covers an area of approximately 25,341.33 sq km (6.3 million acres), and based on commercial success, it entitles ReconAfrica to obtain a 25 year production licence. The Kavango Basin offers both large scale conventional and non-conventional play types.
ReconAfrica acquired a high resolution geomagnetic survey of the licence area and conducted a detailed analysis of the resulting data and other available data, including reprocessing and reinterpretation of all existing geological and geophysical data. The survey and analysis confirm that the Kavango Basin reaches depths of up to 30,000 feet, under optimal conditions to preserve a thick interval of organic rich marine shales, and is anticipated to hold an active petroleum system.
ReconAfrica is targeting equivalent rocks to the hydrocarbon prone unconventional deposits within the Karoo Group of the main Karoo Basin in South Africa. The main producing formations within the Main Karoo Basin are the Prince Albert, Whitehill and Collingham, and all of the Lower Ecca Group.
The Prince Albert Formation within the Karoo Basin of South Africa is composed of mudstones with shales and some small sandstone units. The overlying Whitehill Formation is comprised of fine grained, finely laminated black organic rich shale. The shales contain dolomite lenses near the base. The Collingham Formation is comprised of dark grey mudstones, intercalated with thin yellow clay like layers of ashfall tuff. At the top of the formation, the mudstone grades into sandstone.
ReconAfrica has interpreted high resolution aero magnetic data documenting a very deep untested basin (Kavango) with optimal conditions for preserving a thick interval of organic rich marine shales in the lower portion of the Karoo Super Group. Maximum depth to basement is estimated at over 9 kilometres. ReconAfrica has also completed structural and geological interpretations of magnetic inversion profiles, backfilling the basin with stratigraphic section of Precambrian, Permian and Cretaceous sediments.
ReconAfrica’s interpretation strongly suggests that the formational equivalents to the Lower Ecca Group will be preserved in the untested deeper portions of the Kavango Basin. ReconAfrica believes that these target sediments lie in a previously unrecognized Karoo Basin along major trans African lineaments that link northeast Namibia to the better known Karoo rift basins in eastern Africa.
ReconAfrica’s geologic team has defined a beneficial structural framework and depositional basin configuration utilizing a high-resolution aero-magnetic database. ReconAfrica has developed a fully integrated structural inversion model for the entirety of the Kavango Basin defining a pull-apart basin with targetable half grabens capable of housing substantial thickness of Karoo-aged sediments and reef-prone Lower Paleozoic Units. Regional geologic investigations of the Permian Karoo Seaway, including main Karoo Basin, Botswana Kalahari Basin and Namibian basins Karasburg, Nama, Waterberg, Huab and Owambo support potential for adequate thickness of resource-prone sediments. Preliminary analyses indicate basin depths supportive of oil and gas thermal maturation levels.
ReconAfrica anticipates completing the following business objectives within the next 12 months of operations:
- Complete an environmental impact assessment and permits for the drilling of multiple wells on the ReconAfrica licence;
- Select final drilling locations for three wells;
- Procure the services of a drilling contractor to conduct exploration drilling operations on the ReconAfrica licence; and
- Commence drilling operations.
ReconAfrica owns 90% interest in Petroleum Exploration Licence 73 covering the Kavango Basin in northeast Namibia, pursuant to a Petroleum Agreement among Namibia’s Ministry of Mines and Energy, the Namibian state oil company NAMCOR and ReconAfrica’s wholly-owned Namibian subsidiary. NAMCOR holds the remaining 10% interest in the Licence, with its costs carried to the development stage. The Licence has an exploration period comprising three phases, ending 29 January 2024, or if extensions are requested and granted, ending 29 January 2026.
Following declaration of a commercial discovery, the Petroleum Agreement entitles ReconAfrica to a production licence having a 25 year term.
The fiscal terms of the Petroleum Agreement call for a 5% royalty, and an additional profits tax that applies late in the life of a producing field. ReconAfrica’s Namibian subsidiary is required to pay Namibian corporate income tax of 35%.