By:Proactiveinvestors

(ReconAfrica) said it had made progress in its exploration efforts within Petroleum Exploration Licence 073 (PEL 73) in Namibia over the most recent quarter.

During the three-month period to end September 30, 2024, drilling at the Naingopo exploration well in the Damara Fold Belt reached a depth of 4,000 meters (13,125 feet).

Post-drilling, ReconAfrica plans to conduct logging, coring, and a vertical seismic profile before analyzing results.

Preparations are also underway for a second well, Kambundu, with road and well-site construction nearly complete.

ReconAfrica entered into a joint venture with BW Energy Limited, granting the latter a 20% working interest in PEL 73. The agreement includes a $22 million equity investment to support multi-well exploration and potential contingent payments of $171 million (US$125 million), tied to development milestones.

Additionally, ReconAfrica raised $38.8 million through an underwritten public offering in July.

The company reported a reduction in general and administrative expenses to $3.2 million, down from $4.1 million during the same period in 2023.

“ReconAfrica has undergone significant change in every aspect of how the company operates.,” said CEO Brian Reinsborough.

“We have positioned the company for success following our joint venture process with BW Energy. We have nearly completed drilling operations on the Naingopo exploration well, our first Damara Fold Belt well, and have prepared the access roads and well pad for our second well, Kambundu. We are also planning the first onshore 3D seismic program ever completed in Namibia.”

Reinsborough also highlighted the technical team, calling them “proven oil finders.”

ReconAfrica also expanded its leadership team, appointing Derek Aylesworth, a veteran in the Canadian oil and gas industry to its board. Aylesworth, a former CFO of Baytex Energy (NYSE:BTE) Corporation and Seven Generations Energy, brings over 30 years of industry experience.

CEO Reinsborough was also appointed to the board.

Other milestones include completing the company’s first sustainability report, securing the renewal of Petroleum Exploration Licence 001 in Botswana through 2028, and listing on the Namibian Stock Exchange.

The company plans to release results from the Naingopo well after comprehensive analysis.