CALGARY,
AB, April 17, 2025 /CNW/ - Reconnaissance
Energy Africa Ltd. (the "Company" or "ReconAfrica") (TSXV: RECO)
(OTCQX: RECAF) (Frankfurt: 0XD)
(NSX: REC) announces an agreement for a joint exploration project
in Angola with the Agência
Nacional de Petróleo, Gás e Biocombustíveis or National Oil, Gas
and Biofuels Agency ("ANPG").
ReconAfrica has entered into a Memorandum of
Understanding ("MOU") with ANPG for a joint exploration project in
the Etosha-Okavango basin, located onshore in southeastern
Angola. ANPG is Angola's national concessionaire and
regulator.
The agreement is a strategic addition to the
Company's asset portfolio, which creates an opportunity for early
entry into onshore Angola at a low
cost, with minimal work commitments. It complements ReconAfrica's
activities in Namibia and
highlights the potential of the Damara Fold Belt and Rift Basin by
adding 5.2 million acres in Angola
to the existing 6.3 million acres in Namibia in the highly prospective Damara Fold
Belt and Rift Basin exploration plays.
Brian
Reinsborough, President and CEO of ReconAfrica
stated: "The encouraging technical results from our recent
Naingopo exploration well on PEL 73 onshore Namibia have strengthened our belief in the
significant hydrocarbon potential of the Damara Fold Belt play. Our
regional geological models indicate that the promising Fold Belt
play, known for hosting some of the world's largest fields and
covering extensive areas, likely extends into Angola.
"As a result, we are excited to be entering into
a strategic MOU with ANPG. Recent regulatory reforms make
Angola an attractive jurisdiction
for new oil and gas exploration, and we look forward to working
with ANPG and Sonangol as we progress our exploration
initiatives.
"This significant transaction underscores the
Company's strategic focus and complements our activities in
Namibia, highlighting the
potential within both the Damara Fold Belt and Rift Basin plays. It
also aligns with our focus on creating significant value for our
shareholders as an early mover into prospective hydrocarbon basins
with significant acreage positions. We look forward to implementing
our ESG and community outreach programs and creating employment for
the people of the Okavango region."
Ownership interest in the MOU Area will be
ReconAfrica with an 80% working interest and Sonangol with a 20%
working interest. ReconAfrica will have exclusive rights during the
MOU term.
Under the terms of the MOU, ReconAfrica will
initiate and coordinate geological studies, conduct a regional oil
and gas seep study, and plan for a 2D seismic program, as well as
perform detailed geochemical analysis and sampling of any oil and
gas seeps identified within the MOU area, over a 24-month
period.
Other Upcoming Projects for
ReconAfrica
ReconAfrica is preparing to begin drilling on
Prospect I onshore Namibia, which
is located 47 kilometres (29 miles) from the MOU area in
Angola and is the Company's
largest prospect to be drilled so far. It is targeting 365 million
barrels of unrisked and 32 million barrels of risked
prospective light/medium oil resources(1), or 1.9
trillion cubic feet of unrisked and 140 billion cubic feet of
risked prospective natural gas resources(1), on a 100%
working interest basis, based on the most recent prospective
resources report prepared by Netherland, Sewell, & Associates,
Inc. ("NSAI"), an independent qualified reserves evaluator.
Prospect I is noted as location 63 in the NSAI report.
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(1)
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There is no certainty
that any portion of the resources will be discovered. If
discovered, there is no certainty that it will be commercially
viable to produce any portion of the resources. Prospective
resources are those quantities of oil estimated, as of a given
date, to be potentially recoverable from undiscovered accumulations
by application of future development projects. Prospective
resources have both an associated chance of discovery and a chance
of development. Prospective resources are the arithmetic sum of
multiple probability distributions. Unrisked prospective resources
are estimates of the volumes that could reasonably be expected to
be recovered in the event of the discovery and development of these
prospects.
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About ReconAfrica
ReconAfrica is a Canadian oil and gas company
engaged in the exploration of the Damara Fold Belt and Kavango Rift
Basin in the Kalahari Desert of northeastern Namibia, southeastern Angola, and northwestern Botswana, where the Company holds rights to
petroleum licences comprising over 13 million acres. The Company
will be drilling its next well, Prospect I which is located onshore
Namibia in Petroleum Exploration
Licence 073 ("PEL 73"). This will be the Company's largest
exploration prospect drilled so far. In all aspects of its
operations, ReconAfrica is committed to minimal disturbance of
habitat in line with international standards and implementing
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 the potential of the
Damara Fold Belt and Rift Basin plays into Angola and Namibia, activities outlined by the MOU, the
negotiation of an exploration licence in Angola, the activities proposed under the
successful negotiation of an exploration licence, statements with
respect to the timing of the drilling of Prospect I, the potential
of the Damara Fold Belt, the drilling depth of Prospect I, the
Company's commitment to minimal disturbance of habitat, in line
with best international standards and its implementation of
environmental and social best practices in all of its project
areas. 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
July 29, 2024, 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.
Disclosure of Oil and Gas
Information:
The report of Netherland, Sewell &
Associates, Inc. ("NSAI"), an
independent qualified reserves evaluator, entitled
"Estimates of Prospective Resources to the Reconnaissance Energy
Africa Ltd. Interests in Certain Prospects and Leads located in PEL
73, Kavango Basin, Namibia as of
March 31, 2024" (the "NSAI Report")
and the prospective resource estimates contained therein and in
this press release were prepared by NSAI, an independent qualified
reserves evaluator, with an effective date of March 31, 2024. The NSAI Report was prepared in
accordance with the definitions and guidelines of the Canadian Oil
and Gas Evaluation Handbook (the "COGE Handbook") prepared by the
Society of Petroleum Evaluation Engineers ("SPEE") and National
Instrument 51-101 – Standards of Disclosure for Oil and Gas
Activities ("NI 51-101"). For additional information concerning the
risks and the level of uncertainty associated with recovery of the
prospective resources detailed herein and in the NSAI Report, the
significant positive and negative factors relevant to the
prospective resources estimates detailed herein and in the NSAI
Report and a description of the project to which the prospective
resources estimates detailed herein and in the NSAI Report applies
are contained within the NSAI Report, a copy of which has been
filed with the Canadian Securities Administrators and is available
under the Company's issued profile on SEDAR+ at
www.sedarplus.ca. The NSAI Report was filed on SEDAR+ on
July 29, 2024 under the "Other"
document type.
The prospective resources shown in the NSAI
Report have been estimated using probabilistic methods and are
dependent on a petroleum discovery being made. If a discovery is
made and development is undertaken, the probability that the
recoverable volumes will equal or exceed the unrisked estimated
amounts is 90 percent for the low estimate, 50 percent for the best
estimate, and 10 percent for the high estimate. Low estimate and
high estimate prospective resources have not been included in the
NSAI Report. For the purposes of the NSAI Report, the volumes and
parameters associated with the best estimate scenario of
prospective resources are referred to as 2U. The 2U prospective
resources have been aggregated beyond the prospect and lead level
by arithmetic summation; therefore, these totals do not include the
portfolio effect that might result from statistical aggregation.
Statistical principles indicate that the arithmetic sums of
multiple estimates may be misleading as to the volumes that may
actually be recovered.
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SOURCE Reconnaissance Energy Africa Ltd.