VANCOUVER, BC, Aug. 26, 2020 /CNW/ - Reconnaissance Energy
Africa Ltd. (the "Company" or
"ReconAfrica") (TSX-V: RECO) (OTC: RECAF)
(Frankfurt: 0XD) is pleased to
provide an operations update in opening the deep Kavango Basin.
Recent Funding
"With the very successful completion of ReconAfrica's recent
round of funding of approximately C$23
million, the Company is now well positioned to begin its
evaluation of the Kavango Basin, one of the world's last remaining
undeveloped deep sedimentary basins," stated Scot Evans, Chief Executive Officer. "The
following is an update of active and planned operations, which will
result in the first drilling and seismic programs in this
basin."
Drilling Campaign
ReconAfrica is now funded to initiate and complete a three well
drilling program in the most opportune parts of Kavango Basin, with
the initial goal of establishing an active Permian aged petroleum
system. The campaign will use the Company's 1000 HP Crown
drilling rig (Jarvie-1) purchased
in Q1 2020, which is completing refurbishment and upgrade by
Henderson Rigs in Houston. While several months of work was
lost due to COVID-19 related shutdowns, work has resumed and on
track to complete the refurbishment by October, 2020, where
subsequently the rig and all ancillary equipment will be shipped
from the Port of Houston, Texas to
the Port of Walvis Bay, Namibia
and on to the first of three drilling locations in the Kavango
Basin, northeastern Namibia.
ReconAfrica has now completed the well designs and tendered the
drilling service program in full. The Company has received strong
support for all operations from the industries major service
companies and local contractors. All bids have been received
and are currently under evaluation by the Company, with contract
awards targeted for the middle of September 2020.
The Company is scheduling the spud of the first well (6-2) early
December, 2020 but is aware additional logistical and supply chain
delays presented by the COVID-19 virus may play a role in
execution, although only measured in weeks.
Nick Steinsberger, Senior Vice
President of Drilling and Completions, states; "the Crown 1000 HP
is a strong and very capable rig. In addition, we are making
upgrades such as installing a 250 ton top drive and a 3rd mud pump
for deeper and faster drilling, as well as several key upgrades to
safety related systems. The entire rig and ancillary equipment are
being worked through thoroughly so minimal downtime can be expected
when drilling operations begin in December."
Seismic Campaign
The success of the recent funding program has also enabled the
acceleration of the 2D seismic acquisition, processing and
interpretation program. The seismic program will be executed in
parallel with the drilling campaign, and the combined results will
define the full exploration and development program for 2021 and
beyond. Importantly, the program will provide critical support for
conventional reservoir prospect refinement. The initial 2D program
will cover 400 KM with a targeted start in late Q4 2020.
"The upcoming drilling and seismic campaigns have a strong
technical underpinning, delivered this year by the ReconAfrica
technical team," according to Mr. Evans. A complete regional
structural study was completed, providing a refined picture of the
tectonics of the Kavango basin, the initial development of traps
for conventional reservoirs, and providing the basis for initial
and numerous source rock evaluation. All of this work will be
posted on the ReconAfrica website.
The Company looks forward to a very active second half of 2020,
now focused on successful operations and the establishment of the
Kavango Basin as a major oil and gas province.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any of the securities in the
United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws
and may not be offered or sold within the
United States or to, or for the account of benefit of, U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
ReconAfrica is a junior oil and gas company engaged
in the opening of the newly discovered deep Kavango Sedimentary
Basin, in northeastern Namibia and
northwestern Botswana where the
Company holds petroleum licenses comprising approximately 8.75
million contiguous acres.
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 news
release constitute forward-looking statements under applicable
Canadian, United States and other
applicable securities laws, rules and regulations, including,
without limitation, statements with respect to the timeline for
completion of the refurbishment and shipment of the Company's
drilling rig, the timeline for the award of service contracts to
service providers, the Company's proposed exploration and drilling
activities and timelines, the anticipated results of the Company's
proposed exploration and drilling activities and the posting of the
Company's regional structural study of the Kavango Basin on the
Company's website. 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
statements 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 27, 2020 available under the
Company's profile at www.sedar.com. 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 statements. Those
assumptions and factors are based on information currently
available to ReconAfrica. The forward-looking statements contained
in this news release are made as of the date hereof and ReconAfrica
undertakes no obligation to update or revise any forward-looking
statements, 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 statements. The foregoing statements expressly
qualify any forward-looking statements contained herein.
SOURCE Reconnaissance Energy Africa Ltd.