Reconnaissance Energy Africa Ltd. (ReconAfrica), Calgary, has entered into an agreement with Angola’s national concessionaire and regulator for a joint exploration project in Angola.
The memorandum of understanding (MOU), signed with National Oil, Gas and Biofuels Agency (ANPG), envisages exploration in the Etosha-Okavango basin onshore southeastern Angola, teh company said in a release Apr. 17.
ReconAfrica said the MoU creates an “opportunity for early entry into onshore Angola at a low cost, with minimal work commitments.”
Under terms of the agreement, 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 coverage area, over a 24-month period.
The agreement complements the company’s activities in Namibia, ReconAfrica said, noting the MoU 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.”
“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,” said Brian Reinsborough, ReconAfrica’s president and chief executive officer.
Ownership working interest in the MoU area is ReconAfrica 80% with exclusive rights during the term, and Sonangol with a 20% working interest.
Namibia
ReconAfrica is preparing to begin drilling on Prospect I onshore Namibia, which lies 47 km (29 miles) from the MoU area in Angola and is the company's largest prospect to be drilled so far, it said.
It is targeting 365 million bbl of unrisked and 32 million bbl of risked prospective light/medium oil resources, or 1.9 tcf of unrisked and 140 bcf of risked prospective natural gas resources, on a 100% working interest basis, based on the most recent prospective resources report prepared by Netherland, Sewell, & Associates Inc.
