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NAMIBIA: NAMCOR, ReconAfrica Sign JOA that Seeks to Unlock Oil & Gas Potential

The National Petroleum Corporation of Namibia (NAMCOR) and Reconnaissance Energy Africa Ltd. have announce the execution of a Joint Operating Agreement (JOA) to develop the resource potential of the Kavango Sedimentary Basin, Northeast Namibia.

Under the agreement, the two companies will jointly pursue an ongoing petroleum exploration program in the Kavango East and Kavango West regions of Namibia, with ReconAfrica covering the full costs to commerciality. The two companies initially entered into a Petroleum Exploration Agreement with the Government of the Republic of Namibia in 2015, under which they acquired Petroleum Licence No. 73. The JOA was officially executed on Friday, June 11, 2021, and signed by ReconAfrica CEO Scot
Evans and NAMCOR Managing Director Immanuel Mulunga.

“We are delighted to have finalized the negotiations and signature of a Joint Operating Agreement (JOA) with ReconAfrica for Petroleum Exploration License No. 73. This Agreement will govern the relationship between NAMCOR and ReconAfrica; and we will collectively advance the search for oil in the Kavango Sedimentary Basin in accordance with the Laws of Namibia. We understand the hydrocarbon potential of the Kavango Basin; hence collaborating with an international company with both technical and financial capabilities such as ReconAfrica will unlock the discovery of commercially viable hydrocarbon reserves and thereby enhance economic development in the country,” said Immanuel Mulunga, Managing Director of NAMCOR.

“We’re pleased to finalize this operating agreement, which solidifies our partnership with
NAMCOR. We look forward to working with NAMCOR as we jointly endeavor to unlock the potential of Namibia’s vast national resources, providing jobs, economic growth and long-term responsible resource development – which includes significant contributions to the social and environmental aspirations of the country,” said Scot Evans, Chief Executive Officer of ReconAfrica.

To date, ReconAfrica has drilled two test wells in the Namibian petroleum licence area, both of which have revealed evidence of a working conventional petroleum basin. The Company plans to drill an additional two wells in 2021 to determine if the Kavango Sedimentary Basin will yield a commercially viable petroleum reservoir. Under their Petroleum Agreement with the Namibian government, ReconAfrica and NAMCOR would potentially activate a 25-year Production Licence if the exploratory drilling program proves the Kavango Sedimentary Basin is commercially viable.

The joint venture partners foresee continued national economic opportunities, including local job creation, substantially adding to the more than 200 jobs for Namibians already generated by the current exploration program. In addition to the economic benefits that will flow from the agreement, which also include taxes and potential future royalties, the two companies have committed to the adoption of a stringent Health, Safety and Environment Plan that will guide operations.

During the last year, ReconAfrica has been working closely with all levels of government in Namibia, including Regional and traditional leadership, as it planned and initiated drilling operations in the Kavango East and Kavango West regions. This engagement is a long-term commitment, supported by growing management and technical team in Namibia that is focused on project management, stakeholder relations, environmental management, and wildlife conservation initiatives.

Last week, ReconAfrica released an update on its progress toward its Environmental, Social and Governance (ESG) platform and up

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