7 May 2025
Company completes Naingopo well, prepares to drill Prospect I in Kavango Basin amid $60M in funding and strategic farm-down deal.
Reconnaissance Energy Africa Ltd. has filed its annual disclosure documents for the nine-month period ending Dec. 31, 2024, highlighting a year marked by capital raises, drilling milestones, and a strategic partnership in Namibia’s Kavango Basin.
The company holds interests under Petroleum Exploration Licence 73, covering parts of northeastern Namibia, southeastern Angola and northwestern Botswana. Its current focus is on the Damara Fold Belt and the Kavango Rift Basin.
In April 2024, ReconAfrica raised $17.5 million through a bought deal public offering. It followed up with an additional $38.8 million in July through an underwritten public offering.
In November, the company completed drilling operations at the Naingopo exploration well. The results confirmed the presence of a working petroleum system in the Damara Fold Belt.
Later in 2024, ReconAfrica entered into a farm-down agreement with BW Energy Ltd. The transaction included a 20% working interest in Licence 73, a $22 million equity investment to support a multi-well exploration program, and potential contingent payments of up to $180 million. The deal was approved in January 2025.
Following the agreement, licence ownership now stands at 70% ReconAfrica, 20% BW Energy, and 10% Namcor.
“We completed our farm down transaction with BW Energy Ltd., which was a significant milestone for the company,” said Brian Reinsborough, ReconAfrica’s president and CEO.
ReconAfrica also released its first sustainability report in 2024.
“We drilled our first Damara Fold Belt well safely and without incident,” Reinsborough said. “The Naingopo exploration well demonstrated the liquid hydrocarbon potential of the Damara Fold Belt.”
The company is now preparing to drill Prospect I, expected to spud later this quarter.
“I am excited about Prospect I as this is the best risked exploration well drilled to date by the company,” Reinsborough said.
Prospect I targets 346 million barrels of unrisked prospective light to medium crude oil and 30 million barrels of risked prospective reserves, based on a 100% working interest.
“We are looking forward to 2025 being another successful year with drilling our highly anticipated Prospect I and commencing our planned 3D seismic program in Namibia,” said Reinsborough.