BW Energy will receive a 20% non-operating interest in onshore Petroleum Exploration License 73 in northeast Namibia after signing a letter of agreement with Reconnaissance Energy Africa Ltd. (ReconAfrica).
PEL 73 covers an area of about 25,341 sq km. Two exploration wells are planned to be drilled in Damara Fold Belt basin in second-half 2024. The wells are targeting a combined un-risked resource potential of 489 million bbl oil based on the most recent prospective resource report by Netherland, Sewell & Associates Inc. (NSAI).
After the two initial exploration wells, the partnership plans a 3D seismic survey of Kavango Rift basin in second-half 2025, which may result in two additional exploration wells.
BW Energy will acquire about 16.8 million common shares and 16.8 million warrants in ReconAfrica’s announced equity raise. ReconAfrica will provide BW Energy with a carry of $6.4 million based on the intended initial PEL 73 work program.
