Reconnaissance Energy Africa Ltd (RECAF)

[tdbowieknife]

ReconAfrica Announces an Operations Update, Joint Venture Update and Conference Event.

NEWS PROVIDED BY

Reconnaissance Energy Africa Ltd.
Apr 18, 2024, 06:00 ET

VANCOUVER, BC, April 18, 2024 /PRNewswire/ - Reconnaissance Energy Africa Ltd. (the "Company" or "ReconAfrica") (TSXV: RECO) (OTCQX: RECAF) (Frankfurt: 0XD) announces an operations update with respect to activity relating to Petroleum Exploration Licence 73 ("PEL 73"), onshore northeast Namibia, an update with respect to the ongoing joint venture process and a conference event.

Brian Reinsborough, President and CEO commented: "With our recently completed upsized bought deal financing we are now in a position to commence drilling of the Naingopo exploration well (also referred to as Prospect L), in the Damara Fold Belt. Demining and brush clearing activities on Prospect L were completed in March 2024. Heavy equipment and key personnel are now in the field with construction of the well pad and access roads now commencing. We are meeting with our partner NAMCOR and the Ministry of Mines and Energy this week to finalize the detailed drilling program and future drilling and subsurface data acquisition plans. We thank them for their continued support and are encouraged by the overwhelming support from the people in Namibia, particularly those in the Kavango East and Kavango West regions. We have recently met with both governors of the Kavango region, who continue to express gratitude for Recon's safe activities and community involvement. To date we have employed over 1,350 people from the region and our 36 community water wells have positively impacted the lives of over 10,000 people. We look forward to employing more people from the local communities now that our operations have once again progressed to the exploration and appraisal drilling phase."

First Damara Fold Belt Well
The Company has commenced the major civil works associated with building access roads to the well site with the primary contractor having mobilized equipment and personnel to the region. The Company is in the process of completing the drilling of the water well necessary for the completion of major civil works and drilling operations. On completion of the civil works, access road and wellsite construction, the Jarvie-1 drilling rig will be mobilized for drilling. Key services relating to the maintenance of the Jarvie-1 are all scheduled to be undertaken in May.

The Company expects to begin drilling the first Damara Fold Belt exploration well, Naingopo (Prospect L), in June 2024. The Naingopo exploration well is targeting 163 million barrels of unrisked prospective oil resources or 843 billion cubic feet of unrisked prospective natural gas resources based on the most recent prospective resources report prepared by Netherland, Sewell & Associates, Inc. ("NSAI") dated March 12, 2024, and available on the Company's website (the "NSAI Report")(1). The well is expected to drill to a depth of approximately 12,500 feet or 3,800 meters and is projected to encounter four primary reservoir intervals targeting both oil and natural gas. Drilling is expected to take approximately 90 days and will include three sets of logging operations, coring and reservoir testing.

The Company has been in contact with key drilling personnel who have agreed to rejoin the Company in preparation for the upcoming drilling program and will be mobilizing to Namibia in May and June. The Company has also awarded critical oilfield services contracts to key contractors, and drilling tools and equipment recently purchased are preparing to be shipped to Namibia this month.

Future Plans
Following the drilling of the Naingopo well, ReconAfrica is planning to drill a second Damara Fold Belt well, Prospect P, targeting 278 million barrels of unrisked prospective oil resources, or 1.5 trillion cubic feet of unrisked prospective natural gas resources, based on the NSAI Report(1). Drilling of the second Damara Fold Belt well is expected to commence in the fourth quarter of 2024, subject to the results of the Naingopo well.

Joint Venture Process
The Company has provided interested third parties with bid instructions and guidelines. Initial bids are expected this month and will be reviewed and negotiated as necessary by management. Only strong bids that enhance shareholder and stakeholder value will be considered.

Namibia International Energy Conference
ReconAfrica is a sponsor of the 2024 Namibia International Energy Conference taking place in Windhoek, Namibia from April 23 to April 25, 2024. The Company will be participating in two key industry panels with representation from President and CEO, Brian Reinsborough, and Reconnaissance Energy Namibia ("REN"), Vice President and General Manager, Robert Mwanachilenga. Additionally, Mwanyengwa Ndapewoshali Shapwanale, Director of Communication and Stakeholder Relations with REN, will be a moderator at the conference.


https://www.prnewswire.com/news-releases/reconafrica-announces-an-operations-update-joint-venture-update-and-conference-event-302120763.html


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[Amatuer17]

Thanks - they need money so shelf offering was expected - so dilution will happen but will help operations.

[tdbowieknife]

This happened... Recon was rather generous. Drilling can't come soon enough for me.

https://money.tmx.com/quote/RECO/news/6410490027994714/ReconAfrica_Announces_C10_Million_BoughtDeal_Public_Offering


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[Amatuer17]

What happened here?
Any big bad news?

[dounome]

Okay ReCon go on with bad self---OIL OIL OIL.

[tdbowieknife]

Full Prospective Resource Report (the "Report") dated March 12, 2024 (with an effective date of February 29, 2024) prepared by Netherland, Sewell & Associates, Inc. ("NSAI"),

https://drive.google.com/file/d/1x8ZATFZ8csHGyiaixXXjpKVXcx65BrYs/view?usp=sharing


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[tdbowieknife]

VANCOUVER, BC, March 14, 2024 /CNW/ - Reconnaissance Energy Africa Ltd. (the "Company" or "ReconAfrica") (TSXV: RECO) (OTCQX: RECAF) (Frankfurt: 0XD) announces an updated prospective resource estimate supported by a Prospective Resource Report (the "Report") dated March 12, 2024 (with an effective date of February 29, 2024) prepared by Netherland, Sewell & Associates, Inc. ("NSAI"), an independent qualified reserves evaluator. The Report focused solely on the Damara Fold and Thrust Belt Area, located within the Company's Petroleum Exploration Licence (PEL73), in the Kavango Basin, NE Namibia, in which the Company holds a 90% working interest. The integration of all subsurface data and new geochemical analyses in the Damara Fold Belt has resulted in an increase of oil potential.

REPORT HIGHLIGHTS(1)

Gross to the Company unrisked, prospective oil in place in identified prospects of 15.4 billion barrels
Gross to the Company unrisked, prospective oil resources in identified prospects of 3.1 billion barrels

https://www.newswire.ca/news-releases/reconafrica-announces-an-updated-independent-third-party-resource-report-for-the-damara-fold-belt-onshore-namibia-834836435.html


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[tdbowieknife]

HIGHLIGHTS

Re-initiated the farmout joint venture process in December 2023 with completion expected in April 2024. The bid deadline was extended to allow participating companies time to incorporate the updated resource report on the Damara Fold Belt currently being evaluated by Netherland, Sewell & Associates ("NSAI"), and expected to be completed in March 2024.

Completed the sale of Renaissance Oil Corp., holder of the Mexican assets, for deemed gross proceeds of approximately $10.3 million (US$7.5 million), resulting in a gain on sale of $85.3 million and a reduction in net liabilities of $85.6 million.

ReconAfrica and its joint venture partner the National Petroleum Corporation of Namibia ("NAMCOR") were granted approval for the Second Renewal Exploration Period by the Ministry of Mines and Energy ("MME"), which covers the period from January 30, 2024 to January 29, 2026. As part of the approval for the Second Renewal Exploration Period, the Company requested and has been granted a relinquishment exemption and has retained 100% of the original acreage.

Received key land access approvals and completed the surveying, demining and debushing for Damara Fold Belt - Prospect L, which will be the first well to be drilled in the upcoming multi-well drilling program expected to commence in June 2024. Additional civil works are being undertaken including the construction of well site access roads, the drilling pad, and the tendering of key long lead oil services and equipment.

Streamlined the organization resulting in the reduction of general and administrative expenses in Q4 2023 by 27% compared to Q3 2023 and by 32% compared to Q4 2022.

Working capital of $8.9 million as of December 31, 2023, including $5.2 million in cash.

As disclosed on February 28, 2024, the Company entered into a global settlement agreement to resolve all previously announced U.S. and Canadian class action lawsuits. The settlement is subject to coverage by the Company's insurers and, if approved, will not have any direct financial impact on the Company.

Filed a short form shelf prospectus covering a 25 month period for the offering of securities of the Company in one or more series of issuances of common shares, warrants, subscription receipts, units or debt securities for proceeds of up to $120 million to fund the exploration and evaluation activities of the Company in the Kavango Basin.

Brian Reinsborough, President and CEO of the Company stated: "The Recon team had a productive quarter as we significantly advanced our understanding of the prospectivity of the Damara Fold Belt play, while at the same time advancing our joint venture process and preparing for drilling operations. Our technical team has increased our understanding of the oil potential of the Fold Belt play by integrating all available geochemical data and conducting additional basin modeling studies. This work is currently being evaluated by NSAI and we anticipate the revised resource report in early March. The revised report will also provide interested third party joint venture partners with an independent evaluation of the oil and natural gas potential in the Damara Fold Belt. We expect to wrap up our joint venture process in April. I recently visited Namibia where we met with multiple government agencies and ministers who expressed their appreciation and continued commitment to our project and the energy industry in Namibia. We would also like to pass along our deepest condolences to the people of Namibia on the passing of President Dr. Hage G. Geingob. While observing a period of national mourning, we were pleased to see the transition of power to be seamless and professional."

FILING UPDATE
The Company has filed its quarterly financial statements and management's discussion and analysis for the three and nine months ended December 31, 2023, on SEDAR+ at www.sedarplus.ca.

https://www.newswire.ca/news-releases/reconafrica-announces-the-filing-of-quarterly-financial-reports-870336862.html


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[dounome]

Okay!!!.

[tdbowieknife]

It will be good to finally be rid of them.

https://dockets.justia.com/docket/new-york/nyedce/1:2021cv06864/473256

https://dockets.justia.com/docket/new-york/nyedce/1:2021cv06176/471705

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[dounome]

Is that good or bad, have no info on that.

[tdbowieknife]

Parties have come to a settlement agreement in those BS shareholder lawsuits.

https://reconafrica.com/wp-content/uploads/ReconAfrica-Press-Release-022824-ReconAfrica-Announces-Proposed-Settlement-of-Class-Action-Lawsuits.pdf


Put that in the rearview mirror.

[tdbowieknife]

And.... Sell the news...

Geeezzz.


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[tdbowieknife]

Spudding in June...

https://www.newswire.ca/news-releases/reconafrica-provides-an-operations-update-and-change-in-the-board-of-directors-877358735.html



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[dounome]

Lets go!!!

[tdbowieknife]

The link is in the post. Click on "watch on Youtube" in the image..


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[Amatuer17]

Where is the interview? Can you give the link?

[dounome]

Nice, T

[tdbowieknife]

Drilling May-June @ around 43:25...

Good interview.

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[tdbowieknife]

Quarterly and operational update...

https://www.newswire.ca/news-releases/reconafrica-announces-the-filing-of-quarterly-financial-reports-and-an-operational-update-811684108.html


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[HotterMama]

Nope, I guess not. RED AGAIN!!

I guess reality bites . . .

[HotterMama]

Does this thing EVER finish green???

Geeezzz . . .

[HotterMama]

Yet this OBVIOUS SCAM, POS hasn't BUDGED! If I'm gonna put my money somewhere and have it do NOTHING, I'll stick it in a coffee can and hide it in the basement. LOLOLOL!!!!

[dounome]

Okay Recaf Good Sell of the Mexico plant. $7,500 000

[tdbowieknife]

Latest Presentation...

https://reconafrica.com/wp-content/uploads/ReconAfrica-Corporate-Presentation.pdf


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[tdbowieknife]

I'm thinking the lawsuits have them overly cautious about putting out news.


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[Newhenge]

I had the thought that perhaps keeping the stock price low would help to attract a partner. Is that crazy or not so crazy?

[tdbowieknife]

Come on RECAF...

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[tdbowieknife]

I'm looking forward to the JV announcement.


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[dounome]

THIS STOCK WILL SEE IT'S DAY OF RISE SOON.

[dounome]

WHAT IS GOING ON WITH LUDG.

[dounome]

Would be nice if we move up big tomorrow.

[dounome]

I think it's gonna blow.

[dounome]

Come on RECAF let's go

[couldbebetter]

Absolutely RECAF needs a JV partner, ideally one that will provide their own
drilling rig and crew. The sooner this happens the better!

[Amatuer17]

Some news - they raised money ($6.5 Million) and now approval to drill 12 well to unrestricted depth. They have to plan and execute

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The ECC authorizes ReconAfrica to commence the drilling of an additional 12 exploration and appraisal wells, to unrestricted depths, in the Kavango Basin, in Namibia from July 4, 2023, until July 4, 2026.

The primary objective of the upcoming drilling program is to establish commercial accumulations of oil and or natural gas and natural gas liquids which were identified in the first three stratigraphic test wells.

Management's current focus in the 3rd & 4th quarter of 2023 is developing and prioritizing its prospect inventory in order to execute a multi-well drilling program targeting both primary plays; the Damara Fold Belt and the Karoo Rift Basin, with initial emphasis on the Damara Fold Belt as detailed in the Company's June 26, 2023, news release.

[tdbowieknife]

The full Netherland, Sewell report.

https://drive.google.com/file/d/1xHeE1YZ8N7mskc6aoiZptnGpCqQjX7Ec/view?usp=sharing


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[couldbebetter]

Very encouraging! Hoping this will lead to a JV announcement sooner rather than later.
Would love to see several JV partners come into this with each bringing in their own
drilling rig(s) and various experts. Given the super-majors that are involved offshore
Namibia, they may already feel comfortable with the government and would want to
get involved in onshore exploration and projects.

[tdbowieknife]

Netherland, Sewell report out....

Very good news from a very reputable company.

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[couldbebetter]

What RECAF needs is a JV agreement with a company willing to bring in their own drilling rig & team to
begin drilling the best prospects. Such a move will five RECAF credibility & buy them more time.

[tdbowieknife]

Unfortunately, that won't happen till they drill again, and it could take more drilling than the next well.


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[Amatuer17]

The good news is - the company gives updates as promised

The not so good news - all these updates do not mean much till some concrete results are announced.

We need some positive statements from the company showing that the area (very large) contains some decent amount of oil that can be extracted logically

[tdbowieknife]

Yes... Thanks.

https://reconafrica.com/wp-content/uploads/3D-Block-Diagram-of-GzHD.png

Source:

https://www.newswire.ca/news-releases/reconafrica-completes-two-phases-of-eftg-amp-2d-seismic-program-860951204.html

https://reconafrica.com/wp-content/uploads/ReconAfrica-Completes-2-Phases-of-eFTG-and-2D-Seismic-Program.pdf

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[wreed61499]

Finally some news!

https://finance.yahoo.com/news/reconafrica-completes-two-phases-eftg-200100545.html

[theswordman]

good overall view of where things are and how RECON got there--Wanke and Granath. And what might be next

https://geoexpro.com/the-kavango-onshore-namibia-reconafricas-exploration-program-in-one-of-the-most-underexplored-basins/

[dounome]

I would love to see them find it in Africa.

[Amatuer17]

Company is doing OK in terms of work and providing updates.

The work they are doing is very comprehensive. Whether they find oil is not in their control but their efforts are well directed. Hope we see some results


“Once acquired and processed, the 2,200 sq km survey will be integrated with the Company's existing 2D seismic data, which greatly enhances ReconAfrica's capacity to extrapolate structural geometry in three dimensions”

[dounome]

News from last night,
https://finance.yahoo.com/news/reconafrica-provides-first-eftg-program-200100097.html

[Amatuer17]

The report looks good - they provide updates regularly - I like transparency

There seems to be delays in drilling new well 5-1

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“The earlier phase of 2D seismic combined with stratigraphic test wells which penetrated the underlying Damara section (pre-Karoo aged stratigraphy), initially identified the fold belt below the Karoo Rift Basin and confirmed the trend and presence of these fold structures, carbonate reservoir rocks with up to 17% matrix porosity, fracture porosity, and significant oil shows (Netherland, Sewell & Associates Report). “

[tdbowieknife]

Link to PR posted on Recon website.

https://reconafrica.com/wp-content/uploads/ReconAfrica-Press-Release-040323.pdf


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