VANCOUVER, BC, June 22,
2022 /CNW/ - Reconnaissance Energy Africa Ltd. (the
"Company" or "ReconAfrica") (TSXV: RECO) (OTCQX: RECAF) (FSE: 0XD)
and its joint venture partner NAMCOR (the state oil company of
Namibia) are pleased to announce
completion of the second phase of seismic (761 km) and commencement
of the first seismically defined, initial four well drilling
program with the first well 1819/8-2 ("8-2") scheduled to spud on
or before June 25, 2022.
Seismic Operations
The joint venture partners, ReconAfrica and NAMCOR, have
successfully completed the second seismic acquisition program
comprising 761 linear kilometres of 2-D seismic completed on budget
and on schedule. 180,312 human hours were utilized during the
campaign, of which approximately 80% were Namibians recruited
nationally and, predominantly, from local communities. As with the
Phase 1 program, the Company will utilize multiple processing
companies to provide the best possible seismic images.
Including Phase 1, ReconAfrica has currently acquired 1,211
kilometres of seismic within its over 34,000 square kilometre
licensed area.
Planning is currently underway for the next phase of 2D seismic
acquisition, which is anticipated to comprise in excess of 1,000
kilometres of 2-D seismic. This will be an extensive program and
subject to permitting, the Company anticipates on the ground
acquisition to begin the fall of 2022.
Drilling Operations
This initial four well program will be executed continuously and
will target seismically defined structures with the objective of
testing two of the three play types; oil prone Karoo Rift Fill and
Intra Rift Fault Block plays.
The Company owned 1000 HP drilling rig (Jarvie-1) is now on the first drilling
location (8-2) rigging up and scheduled to spud on or before
June 25, 2022.
The well will be drilled to a planned depth of approximately
2,800 meters (9,184 feet) and is designed to test potential
conventional oil and associated natural gas reservoirs in clastic
rocks (sandstones) in the Karoo Rift Fill, the Company's primary
play. The well will also be drilled deeper into the Pre-Karoo
Mulden and Otavi formations. These intervals correspond to zones in
the Company's first well, the 6-2, which is approximately 6.5
kilometres to the East, that had good oil and gas shows. It is
anticipated the well will reach total depth within 60 days from the
initial spud. Netherland, Sewell & Associates, Inc. ("NSAI"),
the Company's independent qualified reserves evaluator, has
estimated an unrisked gross 799 million barrels of original oil in
place (OOIP) for the well 8-2. The estimated unrisked gross
prospective resource, (P50 case) with a projected 17% primary
recovery, is 138 million barrels of oil for this well. Prospective
resources are the arithmetic sum of multiple probability
distributions.
Disclosures
These estimates are based on un-risked prospective resources
that have not been risked for chance of discovery and chance of
development. If a discovery is made, there is no certainty that it
will be developed or, if it is developed, there is no certainty as
to the timing of such development. There is no certainty that any
portion of the resources will be discovered. If discovered, there
is no certainty that it will be commercially viable to produce any
portion of the resources. Prospective Resources are those
quantities of petroleum estimated, as of a given date, to be
potentially recoverable from undiscovered accumulations by applying
future development projects. Prospective Resources have both an
associated chance of discovery and a chance of development. See the
NSAI report, relating to the Company's prospective resources on the
Company's licences located in Northeast
Namibia effective as of December 31,
2021, which is based on the first two wells and the initial
450 kilometres of 2D seismic. The resource report is available
under the Company's profile on SEDAR at www.sedar.com. This NSAI
report describes the geologic setting for well 8-2 and the resource
and associate risking is described on page 9 of the report as
'Location 25' and illustrated on the map on page 6. The Company has
a 90% working interest in petroleum exploration licence (PEL) 73 in
northeast Namibia. Per the NSAI
report, it should be understood that the prospective resources
discussed and shown herein are those undiscovered, highly
speculative resources estimated beyond reserves or contingent
resources where geological and geophysical data suggest a potential
for discovery of petroleum but where the level of proof is
insufficient for classification of reserves or contingent
resources. The unrisked prospective resources shown in this report
are the range of volumes that could reasonably be expected to be
recovered in the event of the discovery and development of these
leads. This exploration project is pre-concept in regard to any
potential development scenarios, as we do not know the production
characteristics of any undiscovered PIIP (Petroleum Initially In
Place). It should be understood that there is no certainty that any
portion of the resources will be developed. If discovered
there is no certainty that it will be commercially viable to
produce any portion of the resource. As this project is at an early
stage of exploration, it is too early to estimate total cost
required to achieve commercial production, the general timeline of
the project, or the recovery technology to be utilized. The
Company's ability to execute projects and market oil and natural
gas depends upon numerous factors beyond the Company's control,
including: the availability of infrastructure, equipment and
supplies; the availability and proximity of pipeline capacity; the
availability of storage capacity; the supply of, and demand for,
oil and natural gas; the availability of alternative fuel sources;
the effects of inclement weather; unexpected cost increases;
accidental events; currency fluctuations; changes in regulations;
the availability and productivity of skilled labour; and the
regulation of the oil and natural gas industry by various levels of
government and governmental agencies. As a result of these factors,
the Company could be unable to execute projects on time, on budget
or at all, and may not be able to effectively market the oil and
natural gas that it produces.
About ReconAfrica
ReconAfrica is a Canadian oil and gas company engaged in the
opening of the newly discovered deep Kavango Sedimentary Basin, in
the Kalahari Desert of northeastern Namibia and northwestern Botswana, where the Company holds petroleum
licences comprising approximately 8.5 million contiguous acres. In
all aspects of its operations, ReconAfrica is committed to minimal
disturbance of habitat, in line with best international standards,
and will implement environmental and social best practices in all
of its project areas.
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 press release constitute
forward-looking information under applicable Canadian, United States and other applicable securities
laws, rules and regulations, including, without limitation,
statements with respect to timing for the commencement of, the
execution of, and the goals and objectives of, the Company's
seismically defined four well drilling program, the planned depth,
goals and objectives and timing to total depth of the first well in
such drilling program, estimates of prospective resources, the
processing of images from the Company's recently completed second
seismic acquisition program, the permitting of and anticipated
timing for commencement of the Company's phase two extension
seismic acquisition program and the Company's commitment to minimal
disturbances in line with international best standards and its
implementation of environmental and social best practices in all of
its project areas. 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
information 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 amended and restated annual
information form dated May 19, 2021
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 information.
Those assumptions and factors are based on information currently
available to ReconAfrica. The forward-looking information contained
in this release is made as of the date hereof and ReconAfrica
undertakes no obligation to update or revise any forward-looking
information, 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 information. The foregoing statements expressly
qualify any forward-looking information contained herein.
SOURCE Reconnaissance Energy Africa Ltd.