Reconnaissance Energy has entered into a definitive purchase and sale agreement with its partner, Namcor to acquire half of NAMCOR’s 10% carried participating interest in the approximate 6.3 million acres petroleum exploration licence (PEL 73) in the Kavango basin, NE Namibia. Completion of the Transaction is expected to occur before the end of 2022 and is subject to the Company receiving all necessary regulatory approvals, including, but not limited to, approvals from a number of governmental authorities, including the Namibia Ministry of Mines and Energy, and the acceptance of the TSX Venture Exchange (the TSXV”).

ReconAfrica also announced that, subject to receipt of required acceptance from the TSXV, the Company will extend the expiry of a total of 7,475,000 outstanding common share purchase warrants.

ReconAfrica Namibia operations

ReconAfrica holds a 90% interest in a PEL 73 in northeast Namibia which covers the entire Kavango sedimentary basin. The exploration licence covers an area of approximately 25,341.33 sq km (6.3 million acres), and based on commercial success, it entitles ReconAfrica to obtain a 25 year production licence. The Kavango Basin offers both large scale conventional and non-conventional play types.

ReconAfrica acquired a high resolution geomagnetic survey of the licence area and conducted a detailed analysis of the resulting data and other available data, including reprocessing and reinterpretation of all existing geological and geophysical data. The survey and analysis confirm that the Kavango Basin reaches depths of up to 30,000 feet, under optimal conditions to preserve a thick interval of organic rich marine shales, and is anticipated to hold an active petroleum system.

ReconAfrica is targeting equivalent rocks to the hydrocarbon prone unconventional deposits within the Karoo Group of the main Karoo Basin in South Africa. The main producing formations within the Main Karoo Basin are the Prince Albert, Whitehill and Collingham, and all of the Lower Ecca Group.

The Prince Albert Formation within the Karoo Basin of South Africa is composed of mudstones with shales and some small sandstone units. The overlying Whitehill Formation is comprised of fine grained, finely laminated black organic rich shale. The shales contain dolomite lenses near the base. The Collingham Formation is comprised of dark grey mudstones, intercalated with thin yellow clay like layers of ashfall tuff. At the top of the formation, the mudstone grades into sandstone.

ReconAfrica has interpreted high resolution aero magnetic data documenting a very deep untested basin (Kavango) with optimal conditions for preserving a thick interval of organic rich marine shales in the lower portion of the Karoo Super Group. Maximum depth to basement is estimated at over 9 kilometres. ReconAfrica has also completed structural and geological interpretations of magnetic inversion profiles, backfilling the basin with stratigraphic section of Precambrian, Permian and Cretaceous sediments.

ReconAfrica’s interpretation strongly suggests that the formational equivalents to the Lower Ecca Group will be preserved in the untested deeper portions of the Kavango Basin. ReconAfrica believes that these target sediments lie in a previously unrecognized Karoo Basin along major trans African lineaments that link northeast Namibia to the better known Karoo rift basins in eastern 

ReconAfrica’s geologic team has defined a beneficial structural framework and depositional basin configuration utilizing a high-resolution aero-magnetic database. ReconAfrica has developed a fully integrated structural inversion model for the entirety of the Kavango Basin defining a pull-apart basin with targetable half grabens capable of housing substantial thickness of Karoo-aged sediments and reef-prone Lower Paleozoic Units. Regional geologic investigations of the Permian Karoo Seaway, including main Karoo Basin, Botswana Kalahari Basin and Namibian basins Karasburg, Nama, Waterberg, Huab and Owambo support potential for adequate thickness of resource-prone sediments. Preliminary analyses indicate basin depths supportive of oil and gas thermal maturation levels.

KeyFacts Energy: ReconAfrica Namibia country profile