VANCOUVER, BC, Nov. 29,
2023 /CNW/ - Reconnaissance Energy Africa Ltd.
(the "Company" or "ReconAfrica") (TSXV: RECO) (OTCQX: RECAF)
(Frankfurt: 0XD) announces the
filing of its financial results for the quarter ended September 30, 2023, and an operational
update.
HIGHLIGHTS
- Completed the technical evaluation of the entire exploration
inventory to understand the potential of the oil-prone Rift Basin
and Damara Fold Belt gas plays
- Selected the first two drill locations and has begun the
process required for well site preparation and procurement for
operations
- Received an Environmental Clearance Certificate ("ECC"), from
the Environmental Commissioner, Ministry of the Environment,
Forestry and Tourism, covering Petroleum Exploration Licence
("PEL") 073, for the drilling of an additional 12 exploration and
appraisal wells
- Granted approval for the Second Renewal Exploration Period by
the Ministry of Mines and Energy ("MME"), covering the period from
January 30, 2024, to January 29, 2026
- Sold Renaissance Oil Corp. ("Renaissance"), holder of the
Mexican assets, for deemed gross proceeds of approximately
$10.3 million (US$7.5 million)
- Re-opened the virtual data room which includes a comprehensive
assessment of the entire exploration inventory, including full
economic analysis with drill ready prospects and an integration of
that work into the farm out joint venture process
- Onboarded seven experienced oil prospect generators and
technical experts in this region to help execute the above
process
- Handed over 10 solar powered community water wells drilled and
completed by the Company to the Department of Water and Land
Management of Namibia
Brian Reinsborough,
President and CEO of the Company stated: "It has been an
extremely busy four months since I joined ReconAfrica. We have
onboarded a team of oil prospectors who have a history of executing
successful exploration programs. This team undertook the technical
evaluation of our assets, so we are well positioned to complete the
farm out process in the coming months. Strategically, we have also
executed our plan for simplifying our operations with the sale of
the assets in Mexico. With the
approval of our second renewal exploration period and the granting
of the ECC for the drilling of 12 exploration and appraisal wells,
we are well positioned to execute our strategy to deliver
shareholder value."
FILING UPDATE
The Company has filed its quarterly financial statements and
management's discussion and analysis for the three and six months
ended September 30, 2023, on SEDAR+
at www.sedarplus.ca.
As part of the sale of Renaissance, the Company has reclassified
certain assets and liabilities as held for sale. Gross proceeds of
approximately $10.3 million was added
to the Company's treasury on closing of the transaction on
November 16, 2023. In addition, under
the agreement, the purchaser will assume all debts and all present
and future liabilities of Renaissance and its subsidiaries. The
proceeds from the sale, combined with existing cash balances, is
sufficient to fund the operations of the Company as it continues to
pursue a farm out joint venture partner ahead of drilling the next
well. The Company is targeting the farm out joint venture process
as its preferred outcome to fund a multi-well drilling program.
OPERATIONAL UPDATE
Following the appointment of Brian
Reinsborough as President and Chief Executive Officer on
August 1, 2023, and the hiring of a
new technical team with proven exploration successes, ReconAfrica
has undertaken a comprehensive technical review of the full
hydrocarbon potential of PEL 073 and has identified four prospects
the company would like to drill in the next 18 months.
The Company has selected one location in each of the Rift Basin
and the Damara Fold Belt as the first two wells to be drilled in
2024. In the Rift Basin, the prospect selected will test the oil
potential of the Rift Basin play. In the Damara Fold Belt, the
prospect selected will test this play opening fold belt and is
targeting natural gas.
The Company anticipates drilling the Rift Basin well first, but
both well sites are being prepared for drilling as drilling plans
may change based on several factors. Consultations with various
stakeholders are ongoing with more to follow, as the process to
build the access roads and drilling locations progresses. These two
wells are included within the approval of the ECC received on
July 4, 2023, for the drilling of 12
exploration and appraisal wells.
The additional outcome of the comprehensive technical review has
been to provide updated data into the recently re-opened virtual
data room available to third parties as part of the ongoing joint
venture farm out process. The virtual data room includes the
subsurface detail for a targeted multi-well drilling program and
full project economics associated with commercial oil and gas
discoveries. The granting of the Second Renewal Exploration Period
by the MME covering PEL 073 for the period from January 30, 2024, to January 29, 2026, was a key requirement for
potential JV partners.
The Company turned over 10 solar powered community water wells
drilled and completed by ReconAfrica to the Department of Water and
Land Management. To date the 36 community water wells drilled and
completed by the Company have impacted over 10,000 people in the
Kavango East and Kavango West regions of northeast Namibia.
About ReconAfrica
ReconAfrica is a Canadian oil and gas company engaged in the
opening of the newly discovered Kavango Sedimentary Basin, in the
Kalahari Desert of northeastern
Namibia and northwestern Botswana,
where the Company holds petroleum licenses
comprising approximately ~8.0 million contiguous acres. In all
aspects of its operations,
ReconAfrica is committed to minimal disturbances
of
habitat in line with international standards
and will implement environmental and social best practices in all
of its project areas.
Neither the TSXV nor its Regulation Services Provider (as that term is defined
in policies of the TSXV) accepts responsibility for the
adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking
Statements:
Certain statements contained in this press release constitute
forward-looking information under applicable Canadian, United States and other applicable securities
laws, rules and regulations, including, without limitation,
statements with respect to four wells expected to be drilled in the
next 18 months, the preparation of drilling locations, the
completion of a farm out joint venture process, the drilling of a
well in each of the Rift Basin and Damara Fold Belt in 2024, the
drilling of a Rift Basin well first, the building of access roads
and drilling locations, and the undertaking of a multi-well
drilling program. These statements relate to future events or
future performance. The use of any of the words "could", "intend",
"expect", "believe", "will", "projected", "estimated" and similar
expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on ReconAfrica's current belief or
assumptions as to the outcome and timing of such future events.
There can be no assurance that such statements will prove to be
accurate, as the Company's actual results and future events could
differ materially from those anticipated in these forward-looking
statements as a result of the factors discussed in the "Risk
Factors" section in the Company's annual information form dated
June 20, 2023, available under the
Company's profile at www.sedarplus.ca. Actual future results may
differ materially. Various assumptions or factors are typically
applied in drawing conclusions or making the forecasts or
projections set out in forward-looking information. Those
assumptions and factors are based on information currently
available to ReconAfrica. The forward-looking information contained
in this release is made as of the date hereof and ReconAfrica
undertakes no obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws.
Because of the risks, uncertainties and assumptions contained
herein, investors should not place undue reliance on
forward-looking information. The foregoing statements expressly
qualify any forward-looking information contained herein.
RECONNAISSANCE ENERGY AFRICA
LTD.
Tel: 1-877-631-1160 | www.reconafrica.com
SOURCE Reconnaissance Energy Africa Ltd.