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Big salaries always get paid but little drilling goes on. Looks like management is better at collecting a paycheck than looking for oil. What ever happened to, "Once we start drilling, we aren't going to stop?"
Smells like a scam.
ReconAfrica’s daring move in the Kavango Basin
by Wonder Guchu September 6, 2024 in Oil & Gas
ReconAfrica has come a long way, and the company’s path needed economic faith.
It also needed a lot of money and strength to fight off spirited campaigns to stop the company from exploring the vast Kavango Basin.
Before ReconAfrica’s journey into the Kavango Basin, the East African Karoo tectonics studies indicated rift-like structures stretching from the East African Rift to the Namibian Coast.
In 2014, ReconAfrica enlisted the services of Earthfield Technology to produce depth-to-basement inversion and high-resolution aeromagnetic data.
Using this data, ReconAfrica applied for PEL 73, which covers 25,341 km2.
Today, ReconAfrica is drilling a fourth well, the Naingopo, while preparing to spud a fifth one, Prospect P, in the Owambo Fold Belt.
Last week, the company said the Naingopo
exploration well had drilled beyond 2,400 metres or 7,875 feet, with surface casing set at 350 metres and a first casing string set at 1,200 metres.
The well is targeted to be drilled to a depth of approximately 3,800 metres or 12,500 feet and is expected to encounter four primary reservoir intervals containing oil and natural gas.
The company will soon undertake the next set of logging and coring activities and setting the second casing string, targeted at approximately 2,600 metres or 8,530 feet.
“The well has been tracking drilling depth and well cost estimates, and it is on schedule and planned with the primary objectives beneath our current drilling depth,” ReconAfrica said in its quarterly financial report.
It added that if successful, the well would be a significant play-opening discovery, providing access to multiple drill-ready prospects.
ReconAfrica is also progressing with constructing the access road for the second Damara Fold Belt exploration well, Prospect P on PEL 73.
Based on the Netherland, Sewell & Associates, Inc. report, Prospect P targets 309 million barrels of unrisked prospective light/medium oil resources, or 1.6 trillion cubic feet of prospective natural gas resources, on a 100% working interest basis.
The well aims to drill to a depth of approximately 3,800 metres or 12,500 feet and is expected to encounter four primary reservoir intervals targeting oil and natural gas.
The well would be a significant play-opening discovery, providing access to multiple drill-ready prospects.
Daring feat
Writing for GeoExpro in 2023, ReconAfrica geologists Ansgar Wanke and Jim Granath said the company’s frontier exploration program in the Kavango area, east of the Owambo-Etosha Basin in Namibia, continued to yield surprises and encouragement.
The geologists said exploring an untouched basin for hydrocarbons is rare in the twenty-first century, considering that the closest legacy well to ReconAfrica’s block is well over 200 km away, in the Owambo-Etosha basin.
According to the geologists, the deepest water wells in the Kavango Basin ended in the uppermost Karoo unit, the Jurassic Etjo Sandstone.
Wanke and Granath pointed out that the aeromagnetic data suggested extensional features that could harbour a complete Karoo sequence of rocks occupying grabens associated with the Africa-wide belt.
They further said this became the ‘Kavango Sedimentary Basin’ to distinguish it from the long-recognised Owambo-Etosha Basin to the west.
ReconAfrica subsequently commissioned a Karoo paleogeographic study for southern Africa that outlined how all these basins might tie together in a model of Karoo depositional systems.
These studies conceptualised ReconAfrica’s play in the Namibian license and neighbouring PEL 1 in Botswana.
The Kawe well
ReconAfrica’s first stratigraphic test well, Kawe, was planned for drilling in 2020, but COVID-19 stood in the way.
Even then, ReconAfrica overcame the COVID-19-induced disruptions by bringing its acquired rig, Jarvie-1, from Houston, USA, to the Kavango region to start drilling, which began in January 2021.
Wanke and Granath said Kawe’s location for the first well (Kawe) was chosen on an intermediate high within the deep part of the basin based on aeromagnetic-derived depth-to-basement maps.
They added that Kawe was designed to reveal the stratigraphy’s nature and dimensions below what was known from the water wells and to establish whether a petroleum system was present.
“No other data nearby gave any definitive indication of the age of any basin fill that might be present,” the geologists said.
They said the Etjo Formation could be on top of a more extensive Karoo section as in the neighbouring Waterberg Basin, or it could just form a thin veneer resting on the Precambrian Mulden Group, which is the case to the west in the Owambo-Etosha Basin proper.
However, after drilling about 740 metres, hydrocarbon shows were reported from about 740 m below the surface as the drill bit entered the Lower Permian Karoo sandstones and shales.
Wanke and Granath said light hydrocarbon fluid indicators were more potent than associated gases, and hydrocarbon shows continued into the pre-Karoo stratigraphy.
They noted that flow tests and downhole fluid sampling tools were off-location as the well was permitted and planned only as a stratigraphic test.
They, however, used wireline logs, closely spaced cutting samples, and over 180 rotary sidewall cores to provide a wealth of information to better understand the newly discovered rift basin with an associated petroleum system.
The Kawe was drilled to a final depth of 2,294 meters (7,526 feet). Over three zones, over 250 meters (820 feet) of conventionally migrated light oil, natural gas, and natural gas liquids were encountered.
The Mbambi well
ReconAfrica drilled the second well, Mbambi, in 2021. The well intersected only 630 metres of Mesozoic-Cenozoic basin fill resting on deformed pre-Karoo carbonate and evaporite lithologies.
Mbambi also encountered vital gas and fluid indicators over long intervals.
The second stratigraphic test well, the 6-1 in Mbambi, Namibia, was drilled to a final depth of 2,780 meters (9,121 feet). The casing was set to total depth.
A preliminary total of 350 meters (1,148 feet) of oil and natural gas shows were encountered over seven potential zones.
Wanke and Granath said after the two wells, an initial loose network of about 500 kilometres of 2D seismic data was acquired across most of the northern part of the block.
This Phase 1 seismic campaign established the initial inventory of leads, third-party prospective resource estimates, and a framework for the second phase of seismic acquisition.
The Makandina well
In late 2022, ReconAfrica drilled the third and first seismically defined well, the Makandina.
The drilling of the Makandina followed the completion of another 761 km of 2D seismic acquisition.
Makandina encountered hydrocarbon gas liquids, specifically ethane, butane, and propane, as well as smaller quantities of heavier hydrocarbons.
Hydrocarbon gases were recorded between 838 metres and 1807 metres and between 1990 metres and 2058 metres.
ReconAfrica said that although geologically, it was a successful well, economic accumulations of hydrocarbons were not encountered, very likely due to the absence of a trap or a four-way dip closure.
After this slight setback, ReconAfrica extended its seismic acquisition program to acquire over 2,600 km in late 2022 and the first half of 2023.
With acquisition limited to 2D seismic on existing roads, tracks, and fence lines, an enhanced Full Tensor Gravimetry (eFTG) survey has been permitted to complement the seismic data.
This high-resolution gravity information is expected to improve the interpolation between 2D seismic lines.
Wisdom 5-1 Well
Unfazed by Makandina’s results, ReconAfrica announced it would move to the next well, the Wisdom
5-1.
The well was expected to principally test stacked plays in a different part of the Karoo Rift Basin lying over the eastern most edge of the Owambo-Etosha basin.
On June 28, 2022, ReconAfrica engaged a leading airborne geophysical survey provider to conduct an eFTG survey over an area of nearly 2,200 square kilometres (540,000 acres) in ReconAfrica’s 25,000 square kilometres (6.3 million acres) PEL 73 exploration license in northeastern Namibia.
ReconArica announced that it delayed the target commencement date for drilling this well until late February 2023.
ReconAfrica communications manager Ndapewoshali Shapwanale said the Wisdom well was not drilled because the well was supposed to add more data to the portfolio.
Shapwanale said the company had to decide whether to proceed with the drilling or use the available data from the Kawe and Mbambi wells.
According to Shapwanale, the Enhanced Full Tensor Gravity was also completed before the drilling at the Wisdom prospect had started.
Wanke and Granath gave an example of a seismic line across the Karoo Rift Basin, which shows the graben structure and growth faults typical of an extensional basin.
In addition, seismic data had shown that the rift straddles the frontal fold and thrust belt of the late Precambrian-Cambrian Damara Orogenic Belt.
The geologists said the term ‘Karoo Rift Basin’ is now the preferred terminology within ReconAfrica to describe this rift overlying older rocks.
Then came the Damara Fold Belt
On April 3, 2023, ReconAfrica said a phase two 2-D seismic program had confirmed a significant new play type in the southern and western parts of PEL 73.
This new fold belt province, the Damara Fold Belt, initially identified the southwest of the Karoo Rift Basin, consists of a prominent and imaged series of anticlinal structures known as Whaleback anticlines.
The Damara orogenic belt stretches from the coast eastwards across the country to eventually disappear as it trends under the same Cenozoic Kalahari cover that hides the Karoo Rift Basin.
The seismic data revealed that the width of the Damara-age frontal fold belt is more significant than was suspected and that the fold assemblages undergo a central northward deflection to become north-northwest trending in the license area.
Wanke and Granath said this change in orientation from the west-east oriented structures in Otavi Mountainland is the only frontal fold belt exposure supported by Future Market Insights analysis of the bedding data sets from the three wells.
They said the pre-Karoo had been an exploration target further west in the Owambo-Etosha basin; so far, only five stratigraphic/exploration wells have been drilled between 1964 and 1986.
Monitor Exploration is planning its exploration program in the eastern portion of the Owambo-Etosha basin, west of ReconAfrica’s license acreage.
ReconAfrica conducted a Vibroseis seismic parameter test to establish the best vibrator sweep parameters and number of vibrators in a fleet and to investigate field data processed results for future seismic projects on PEL 73.
Six runs of a six-kilometre line with different vibrator and sweep configurations were completed to reshoot a 23-kilometre line previously shot with an Accelerated Weight Drop source.
The initial field data processing results from the 6 km line identified the best vibrator and sweep configuration for the 23 km test line. After shooting the 23 km line, the results were processed to a brute stack and compared to the previous Accelerated Weight Drop processed data, showing marked improvement in data quality.
Individual Vibroseis and Accelerated Weight Drop shot records were also analysed, and similar improvements were observed.
ReconAfrica CEO Brian Reinsborough said the Naingopo exploration well drilling is on time and budget.
Reinsborough also said the seismic velocities are running faster than modelled, hence, reservoirs are coming in deeper than predicted, with all primary reservoir targets below the current drilling depth.
“We continue progressing with the road construction work before getting the well pad ready for the Kambundu (Prospect P) exploration well, which is targeted to start drilling in the fourth quarter,” he said.
https://theextractormagazine.com/2024/09/06/reconafricas-daring-move-in-the-kavango-basin/
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The new website is up...
https://reconafrica.com/
ReconAfrica Announces an Operations Update.
Crappy market going on since last jobs report. The market is overdue for a much-needed correction. How much will it correct is anybody's guess, but RECAF I must say is showing strength today. We are much undervalued at present stock price in correlation to future potential. The latest interview with RECAF's new President and CEO, Brian Reinsborough is a must listen. Scroll down to see find the interview or watch on Youtube. https://stocktwits.com/symbol/RECAF
RECONAFRICA ANNOUNCES ANNUAL FILINGS AND CORPORATE UPDATE
https://www.newswire.ca/news-releases/reconafrica-announces-annual-filings-and-corporate-update-896738557.html
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BW Energy acquires 6.7% of ReconAfrica for US$16m and a 20% working interest in PEL 73 for US$125m
ReconAfrica has found a joint venture partner – BW Energy – with a hefty US$16 million investment.
BW Energy, which has a 95% interest in the Kudu field, is paying US$16 million for an ownership of 6.7% in ReconAfrica.
The company is also acquiring a 20% working interest in PEL73 in exchange for future payments of up to US$125 million upon successful exploration outcomes, of which US$45 million comes at declaration of final investment decision of a commercial discovery, US$5 million on first production, and three tranches of US$25 million after certain cash flow milestones are reached.
ReconAfrica is 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 licences comprising ~8 million contiguous acres.
ReconAfrica has been looking for a partner for months.
The joint venture structure preserves a 70% working interest in PEL 73 for ReconAfrica, 10% carried interest for Namcor and 20% working interest for BW Energy.
BW Energy will participate in ReconAfrica’s two Damara Fold Belt exploration wells and a 3D seismic program.
The company also has an option to join two Rift Basin exploration wells for over two years.
In return, BW Energy will earn a US$45 million bonus at the declaration of commerciality (final investment decision), providing additional capital carry through to the first production.
The company will also receive US$80 million in production bonuses based on certain cash flow milestones.
After achieving positive free cash flow, BW Energy will earn a further US$141 million.
ReconAfrica has also agreed with Research Capital Corporation to be the lead underwriter and sole book-runner.
ReconAfrica CEO Brian Reinsborough welcomed BW Energy as a partner in Namibia.
“Our farm-out joint venture process was thorough, which attracted significant interest from high-quality companies of all sizes.
“BW Energy’s offer met our guidelines to ensure strategic alignment for a multi-well exploration drilling program while retaining significant upside exposure on success.
“We continue to execute our strategic priorities set out last year with the company on track to drill a portfolio of opportunities in the Damara Fold Belt and the Kavango Rift Basin,” Reiborough said.
He added that the first well, Naingopo, is currently drilling and is supported by BW Energy, whose high-quality technical team will add significant value to executing ReconAfrica’s forward exploration plans.
BW Energy CEO Carl Arnet said the transaction will enable them to expand their footprint in a strategically important energy region and further their position as a leader in Namibia’s development towards energy independence.
Arnet said the data and insights gained through ReconAfrica’s exploration campaign will further BW Energy’s understanding of Namibia’s geology and petroleum system and help de-risk planned exploration and development of our Kudu licence.
https://theextractormagazine.com/2024/07/17/bw-energy-acquires-6-7-of-reconafrica-for-us16m-and-a-20-working-interest-in-pel-73-for-us125m/
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Namibian Stock Exchange Listing
The Company intends to apply, in the near future, for a dual-listing on the Namibian Stock Exchange, alongside its existing listing on the TSXV in Canada, to further broaden our global exposure.
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Strategic Farm Down Transaction
ReconAfrica is selling a 20% working interest in PEL 73, onshore northeast Namibia, to BW Energy, in exchange for total potential consideration of US$141 million (C$193 million), including US$16 million (C$22 million), equity investment and an additional US$45 million (C$62 million) in carry payments based on achievement of commerciality (final investment decision). These payments will be paid in two installments, one at FID and the second payment one year after production. In the event of development of discoveries, production milestone payments could total an additional US$80 million (C$109 million). Three separate production payments of US$25 million (C$34 million), are made after BW Energy reaches certain free cash flow milestones. An additional first production payment of US$5 million (C$7 million), is paid sixty days after the start of commercial production. On completion of the transaction, the ownership interests in PEL 73 will be; ReconAfrica 70%, BW Energy 20%, and NAMCOR 10%. ReconAfrica remains the operator of PEL 73.
Completion of the transaction is subject to the satisfaction of customary closing conditions, including entering into a definitive farm down agreement and approvals from NAMCOR (the state oil company of Namibia) and the Ministry of Mines and Energy in Namibia.
Multi-Well Exploration Drilling Campaign and Development Capital
The Joint Venture transaction has been structured to provide tiers of financing to cover capital requirements in each of the phases of exploration, development and production.
Together with the concurrent Offering, the Company has the financial runway to execute a high impact multi-well exploration drilling program with play opening exposure in the Damara Fold Belt, on a 100% working interest basis, to over 17.1 billion barrels of undiscovered original oil-in-place, consisting of 3.4 billion barrels of unrisked prospective oil resources, based on the most recent prospective resource report prepared by Netherland, Sewell & Associates Inc. (“NSAI”), dated March 12, 2024(1) (as announced in a press release dated March 14, 2024). On exploration success, the Company has built-in bonus payments to fund the program to first production. On commencement of commercial production, the transaction further exposes shareholders to certain production payments based on cash flow milestones.
https://finance.yahoo.com/news/reconafrica-announces-strategic-partnership-bw-204000122.html
BW Energy
https://www.bwenergy.no/
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ReconAfrica Announces a Strategic Partnership with BW Energy to Explore Onshore Namibia and Concurrent C$35 Million Overnight Marketed Offering Led by C$22 Million Strategic Investment from BW Energy
Key Highlights of Letter Agreement:
Working interest sold to BW Energy is 20%
BW Energy to participate in two Damara Fold Belt exploration wells and a 3D seismic program, with an option to participate in two Rift Basin exploration wells over 2-year period
US$16 million (C$22 million), equity investment supporting the exploration program
US$45 million (C$62 million), bonus earned at declaration of commerciality (final investment decision), providing additional capital carry through to first production
US$80 million (C$109 million), of production bonuses based on certain cash flow milestones achieved by BW Energy
US$141 million (C$192 million), total potential consideration, including all incentives and production bonuses which is paid after achieving positive free cash flow
The joint venture structure preserves a 70% working interest in PEL 73 for ReconAfrica, exposing shareholders to significant upside on success
Provides alignment with strategic partner to explore both the Damara Fold Belt and Kavango Rift Basin with significant in country expertise on oil and gas monetization markets
https://marketwirenews.com/news-releases/reconafrica-announces-a-strategic-partnership-with-b-5008354714821718.html
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Hopefully we finally get news very soon about who and what the JV is...
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Operations update June 11 2024
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, and an update on the joint venture process.
https://www.prnewswire.com/news-releases/reconafrica-announces-an-operations-and-joint-venture-update-302169311.html
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Operations update... and update on the joint venture process and the termination of the marketing agreement with FTB Capital Inc.
https://www.newswire.ca/news-releases/reconafrica-announces-an-operations-update-joint-venture-update-and-termination-of-ftb-capital-inc-contract-806991061.html
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May 2024 Presentation:
https://reconafrica.com/wp-content/uploads/ReconAfrica-Corporate-Presentation-050924.pdf
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Maybe speculation on JV announcement next week...
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we getting volume today , maybe news monday
jmho
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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Thanks - they need money so shelf offering was expected - so dilution will happen but will help operations.
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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What happened here?
Any big bad news?
Okay ReCon go on with bad self---OIL OIL OIL.
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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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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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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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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Is that good or bad, have no info on that.
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.