NAMIBIA: ReconAfrica Provides Update Ahead of Multi-Drilling Well Campaign

ReconAfrica continues to pursue activities as it prepares to start a multi-well drilling campaign in 2024. To date, all surveying activity has been completed, with demining activities complete on the Damara Fold Belt Prospect L, which is expected to be the Company’s first drilling location with an expected spud date in June 2024. The Company is currently in the process of preparing well site access roads and preparing the drilling pad. Additionally, the Company is in the process of tendering all required equipment and services associated with the multi-well drilling campaign which is expected to see back-to-back wells in the Damara Fold Belt. Follow-up drilling is expected to be either Prospect M or Prospect P, both locations are being prepared for drilling operations.

The Company has further progressed its technical assessment of the Damara Fold Belt over the last several months with the integration of new studies, basin modelling and all available geochemical data. The Company now anticipates potentially having oil in the shallower Mulden reservoir intervals, while the deeper Otavi target is expected to have natural gas with liquid/oil yield potential. The Company has re-engaged Netherland, Sewell & Associates (NSAI) to evaluate the oil potential of this play considering the additional information and anticipates having a revised report issued in March. Over in the Rift play, the Company has decided to undertake an additional phase of tight grid 2D seismic activity to more clearly image the prospects within this play ahead of drilling. The revised target for the first Rift well is in the first half of 2025.

ReconAfrica continues to progress the farmout joint venture process which was restarted in December 2023. For this process, the Company de-constructed the assessment of all the assets and re-built the data room with a data calibrated petroleum system assessment of the assets. To allow companies in the data room sufficient time to incorporate the pending revised NSAI report into their assessment, the timeline has been extended and is now anticipated to be completed in April 2024. If a joint venture is completed, we would expect the successful bidder to participate in the drilling of the Damara Fold Belt Prospect L.

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