ReconAfrica is working collaboratively with national governments, Traditional Authorities and local stakeholders to manage its program to explore for oil and gas potential in Northeast Namibia and Northwest Botswana. To date, ReconAfrica has been granted licences by Namibia and Botswana to explore and confirm the presence of their hydrocarbon resources.
ReconAfrica drilled three stratigraphic test wells proving a working petroleum system and multiple reservoir sequences within our licence area in Namibia. 2D seismic programs were acquired between 2021 - 2023 with over 2,750 km seismic lines acquired and processed. Approximately 5,000 km2 of Enhanced Full Tensor Gravity (eFTG) data was acquired and processed in 2023. These exploration activities allowed our team to identify numerous exploration opportunities within the Kavango Rift Basin and Owambo Basins. Drilling locations have been de-risked and top ranked prospects have been permitted. In 2024, two Damara Fold Belt drilling locations will target large anticlinal structures with the purpose of achieving commercial levels of oil and natural gas production. ReconAfrica (70% working interest) along with BW Energy Limited (20% working interest) and NAMCOR (10% carried working interest), are working together on the 2024 drilling program and other exploration activities. The first exploration well, Naingopo, was spud in early July 2024.
Our current exploration activities are for conventional oil and natural gas accumulations. ReconAfrica has received permission from the Government of Namibia to conduct seismic programmes, complete eFTG surveys and drill exploration and appraisal and stratrigraphic test wells.
All data acquired during exploration activities undertaken by ReconAfrica and joint venture partners BW Energy and NAMCOR, are owned and managed, by Namibia’s Ministry of Mines and Energy.
While we are at a much earlier stage in Botswana, ReconAfrica also continues to complete desktop studies and research analysis to define an exploration strategy.
Should oil and gas be discovered, the Traditional Authorities and elected governments of Namibia and/or Botswana will determine how they will manage their resources.
Licence Map PEL 073 and PEL 001
Exploration Program
Exploration to date
- Drilled 3 stratigraphic test wells – proving a working petroleum system in the Kavango Rift Basin play
- Seismic and drilling identified a new play, the Damara Fold Belt comprising of large structural anticlines underneath and southwest of the Kavango Rift Basin
- Thorough petroleum systems assessment completed for both plays
- Generated 24 leads and prospects in the Damara Fold Belt and 51 leads and prospects in the Kavango Rift Basin
Immediate Exploration Focus - Damara Fold Belt
- Ten lines of evidence indicate the presence of liquids in both plays
- Multiple reservoirs in the Fold Belt will be targeted within the clastic Mulden Group and the carbonate Otavi Group - with additional potential for thrusted repeat formation targets
- Naingopo exploration well, spud on July 7, 2024 is currently drilling using the company owned rig, the Jarvie-1
2D Seismic acquisition
- Over 2,750 kms of 2D seismic was acquired from 2021 to 2023
- Seismic has been processed and interpreted providing prospects for the 2024 exploration drilling program
- Greater than 95% local content utilized for all seismic acquisition
- These 2D programs were:
- Low intensity / low cost / high quality data / accelerated weight drop system / no shot holes
- Executed efficiently and safely with no lost time incidents in the two years of operations
eFTG
- Acquisition, processing and interpretation of approximately 5,000 km2 completed in 2023
- eFTG, a relatively new technology, delineated the Kavango Rift Basin and its associated hydrocarbon plays and prospects
- eFTG data has been processed and successfully integrated into the regional geological interpretation and has specifically enhanced the Rift Basin prospect mapping
Exploration and Appraisal Wells
Exploration well Naingopo 11-1 Spud July 7, 2024
- Large seismically defined structure
- 10,000 acres/ 40km2 4-way closure
- 21,000 acres/ 85km2 max spill point
- Multiple stacked reservoirs
- NSAI Resource Potential (Recon 90% WI): 163MM BBLS | 843 BCF
- Drill Depth 3800m- 90 days projected Spud to Rig Release
- Upon success, appraisal well locations already permitted
PEL 073 Basin Overview: Owambo and Kavango Basins
Kavango Basin:
Younger basin superimposed over the Owambo Basin, Permian to Jurassic aged Karoo rocks deposited in a Permian aged rift. Clastic sands and shales deposited in possible shallow lacustrine to deep water environments. Potential for source from shales in-situ and from deeper Owambo source rocks.
Production analogue: East African Rift
Depositional hiatus/erosional unconformity between the Kavango Basin and the Owambo Basin
Owambo Basin:
Older Neoproterozoic/Early Paleozoic aged Otavi and Mulden rocks. The Otavi was depositied on a stable carbonate platform. Folded and thrusted into a mountain belt during the Damara Orogney (~580-525 Mya). Mulden clastics are interpreted as marine, deltaic to fluvial, largely deformed but isopachous in PEL073 suggesting later stage compression locally.
Carbonate platform environments provide excellent depositional setting for reservoir rocks with proximity to oil-prone source rocks.
Production analogue: Oman
Play Types and Stratigraphy
Kavango Rift Basin Play
- Karoo sandstones and shales (Age: Permian to Jurassic)
- Karoo reservoir targets: Ecca and Dwyka Formations
- Karoo source rocks: Dwyka Formation
Damara Fold Belt Play
- The Damara Fold Belt has multiple elongated anticlinal structures with high potential of 4-way closure clearly imaged with 2D seismic
- Mulden sandstone and shales, deeper Otavi limestones/dolomites (Age: Neoproterozoic/ Early Paleozoic)
- Mulden reservoir targets: Upper Owambo Formation, Lower Owambo Formation, Upper Kombat Formation, with additional potential in the Upper Tschudi Formation
- Mulden source rocks: Owambo basin regional thick black shale with good TOC- Kombat Black Shale
- Otavi reservoir targets: Huttenberg Formation, Elandshoek Formation (up to four potential reservoirs based upon the Kawe 6-2 well)
- Otavi source rocks: Huttenberg, Maieberg, Berg Aukas, Ombombo
Stratigraphic column inputs include petrophysics, literature, Owambo Basin wells, Otavi Strontium Isotope Analysis (Kawe 6-2/Hoffman)
Licence Terms
ReconAfrica holds a 70% interest in a petroleum exploration licence in Northeast Namibia and a 100% interest in petroleum exploration rights in Northwest Botswana over the entire Kavango Sedimentary Basin. The exploration licences cover an area of 25,341 square km (6.3 million acres) in Namibia and 7,592 square km (1.9 million acres) in Botswana. Based on commercial success, ReconAfrica is entitled to 25-year production licences for any commercial discovery.
ReconAfrica’s exploration licence PEL 73, covering the Kavango and Owambo Basins in Northeast Namibia, was 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. Following the execution of the agreement in 2021, NAMCOR holds 10% interest in the licence, with its costs carried to the development stage. In July 2024, ReconAfrica entered into a Definitive Farm Down Agreement with BW Energy Limited and its new partner, holds 20% interest in the PEL 73 licence.
In Namibia, 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%.
In Botswana, the exploration licence PEL 001 continues to June 2024 with the right to extend to June 2034. The Company has requested for an extension and is currently being reviewed by the Government of Botswana. Fiscal terms include royalties that are subject to negotiation and range from 3% to 10% and a corporate income tax of 22%.
Jarvie-1 Drilling Rig
The Company owns a 1,000 horsepower drilling rig, the Jarvie-1, which is suitable for drilling the exploration and appraisal wells planned as part of its multi-well drilling campaign. The rig has the capacity to drill to approximately 3,800 metres or 12,500 feet which is the targeted depth of the Naingopo exploration well which is currently drilling.