Reconnaissance Energy Africa announces an updated prospective resource estimate supported by a Prospective Resource Report dated March 12, 2024 (with an effective date of February 29, 2024) prepared by Netherland, Sewell & Associates, Inc. (“NSAI”), an independent qualified reserves evaluator. The Report focused solely on the Damara Fold and Thrust Belt Area, located within the Company’s Petroleum Exploration Licence (PEL73), in the Kavango Basin, NE Namibia, in which the Company holds a 90% working interest. The integration of all subsurface data and new 
geochemical analyses in the Damara Fold Belt has resulted in an increase of oil potential.

Report Highlights(1)

• Gross to the Company unrisked, prospective oil in place in identified prospects of 15.4  billion barrels
• Gross to the Company unrisked, prospective oil resources in identified prospects of 3.1  billion barrels

(1) 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.

Brian Reinsborough, President and CEO commented: 
“Since assuming the role of CEO in August of last year, I have assembled a team of experienced explorationists, led by Chris Sembritzky, Senior Vice President of Exploration. Analysis of core samples from all three previously drilled wells has revealed the presence of liquid hydrocarbons, confirming the presence of a working petroleum system. The team has also undertaken a comprehensive study of all other sources of geochemical data and conducted additional basin modelling, which collectively indicates that the Damara Fold Belt holds not only potential for large natural gas accumulations but also potential for large oil accumulations. The technical teams are using all this recent information to help prioritize and sequence the drilling order of our upcoming drilling program, which is planned to commence in June with the drilling of Prospect L.”

Chris Sembritzky, Senior Vice President of Exploration, stated: 
“The scale of the Damara Fold Belt play was a pivotal factor that drew me to ReconAfrica. Over the past several months, my team and I have thoroughly reviewed an extensive amount of data, which has only increased our excitement for the planned upcoming drilling campaign in both the Damara Fold Belt and Rift plays. We firmly believe that this endeavor has the potential to unlock significant resource.”

A copy of the Report can be found on SEDAR+.

The Report highlights an increase in Prospective Oil Resources since the last previous report (dated December 8, 2023, with an effective date of March 31, 2023) prepared by NSAI and filed on December 20, 2023, which highlighted only Prospective Natural Gas Resources. The change in estimated Prospective Oil Resources is the result of in-depth analyses of all geochemical data, including cores, cuttings, mud logs, seeps and additional basin modelling studies. The Company outlined seven lines of evidence for oil to be present in the shallower Mulden intervals which has collectively elevated the chance of finding oil in the Mulden reservoirs. The deeper Otavi targets are still believed to be gas prone with probability of liquids as the Otavi source is an oil prone source rock. 

The Report reflects estimates of Prospective Resources from 19 identified prospects which are viable drilling targets. The Report also includes estimates of Prospective Resources from four leads which require more data acquisition and/or evaluation to be classified as a prospect.

Each opportunity in the inventory has been qualitatively assessed for the chance of oil versus gas, and accordingly assigned as a risk factor for finding oil. NSAI has summarized the volumes assuming oil discoveries because there is generally a higher volume weighted chance of discovering oil in the petroleum system than gas. 

NSAI has also conducted an alternate assessment of prospective resources assuming gas discoveries, which is based on last year’s Damara Fold and Thrust Belt Area resource assessment.

KeyFacts Energy: ReconAfrica Namibia country profile