Reconnaissance Energy Africa Ltd. is pleased to provide an exploration update for the Kavango Basin in NE Namibia and NW Botswana, highlighting multiple drilling prospects and new play types following the integrated analysis of the two stratigraphic test wells and first phase of 2D seismic.
The initial exploration and development is being conducted in the first of five sub-basins within the greater Kavango Basin where the Company holds petroleum rights over the entire sedimentary basin comprising approximately 8.5 million acres.
The results of the first two stratigraphic test wells drilled by ReconAfrica and subsequent 2D seismic data acquired in the Kavango Basin, NE Namibia have established a significant rift basin similar to the other major petroleum provinces/rift basins including onshore Africa, and areas of the North Sea.
Thus far, the integrated interpretation has established three groups of hydrocarbon opportunities ("Plays"), illustrated in the Play Map below:
Primary: Karoo Rift Fill (Light Oil)
Secondary: Intra-Rift Fault Blocks (Light Oil)
Secondary: Damara Fold Belt (NEW PLAY, Gas/Gas Condensate)
The work has initially identified five drillable prospects (including sidetracking of the 6-2 well) and eighteen leads in the first of five sub-basins. These leads will potentially be matured to drillable prospects driven by the second phase of 2D seismic acquisition currently underway.
Six potential reservoir and four potential source rock intervals have been established in the basin so far. Initial thermal analysis indicates the lower Karoo Rift Fill source rocks should be in the light oil maturation interval.
New Play established: Interpretation of the first phase of seismic data also identified a new play, the Damara Fold Belt, that was not anticipated in the original studies of the Kavango Basin. These structures as illustrated by the seismic example, delineated in purple, in the Play Map appear coherent, mappable and potentially large.
Termed ASF-1 on the Play Map, an active combustible gas seep was found that is clearly thermogenic hydrocarbons and part of an active petroleum system, as confirmed by third party analysis. It also supports the concept of potentially more than one source rock system, including both light oil and gas/gas condensate.
For 2022 ReconAfrica plans to initiate a multi-well drilling program, beginning with three test wells and a sidetrack of the 6-2 well. Importantly, these will be the first wells drilled into seismically defined traps with the objective to prove commerciality of this petroleum system. The Company and relevant governmental authorities are advancing drilling permits with a target to spud the first of the three wells in Q2 2022. A more definitive schedule for construction and spudding the first well will be provided in the next few weeks.
The Phase 2 seismic acquisition (approximately 600 kms) is ongoing with good progress to date, emphasizing prospect definition and extension into new areas to the east and south.
Scot Evans, Chief Executive Officer of ReconAfrica, commented: "As we continue to progress the evaluation and exploration of the Kavango Basin, our work to date has increased our confidence that the Kavango Basin is highly prospective for conventional oil and natural gas. Building on the success of our 2021 program, we are now focused on executing our 2022 seismic acquisition and drilling program. As we begin this second phase of operations, I would like to recognize the strong support for this project by the Namibian government and local communities, and to thank all the people within ReconAfrica and its local affiliates for their incredible effort in deepening our understanding of the Kavango Basin, what we believe is one of the largest undeveloped onshore basins in the world."