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VANCOUVER, Dec. 24, 2019 /CNW/ - Reconnaissance Energy Africa Ltd. (the "Company" or "ReconAfrica") (TSX-V: RECO) (OTC: LGDOF) (Frankfurt: OXD) advises that Namibia's Minister of Energy and Mines has confirmed that ReconAfrica's exploration licence covering its rights in the Kavango Basin has been approved for its First Renewal Period, and accordingly the exploration phase of the licence is renewed and continues until January 25, 2022.
"As anticipated, the Minister of Energy and Mines has renewed our exploration licence for a two year period," stated Jay Park, CEO of ReconAfrica. "ReconAfrica's exploration and development plans for the Kavango Basin extend well into the future, and this First Renewal Period reflects the Company's commitment to drill at least two wells during this phase. It also reflects the Ministry of Energy and Mines' support for our prior and continuing work in the Kavango Basin."
ReconAfrica's agreement with the Ministry of Energy and Mines and NAMCOR, the state oil company of Namibia, calls for a minimum work program during the First Renewal Period comprised of the drilling of exploration or stratigraphic wells, and 250 km2 of 2D seismic, with an aggregate expenditure for exploration activities of US$10,000,000.
As part of advancing its drilling program for the Kavango Basin, ReconAfrica has engaged Henderson Rigs of Houston, Texas for the purpose of procuring a North American drilling rig and ancillary equipment, specifically designed for Namibian logistics and drilling depths of the Kavango Basin.
Background on Namibia Exploration Licences and PEL 73
Namibia's Petroleum Act provides that the Ministry of Energy and Mines (MEM) may grant petroleum exploration licences having a duration comprised of three periods: Initial Period, First Renewal Period and Second Renewal Period, having terms of four years, two years and two years respectively. Each period may be extended for an extension period of one year by application to MEM. A commercial discovery of oil or gas made during the exploration period entitles the holder of the exploration licence to a production licence with a 25 year term, and renewal period of up to ten years.
ReconAfrica is a junior oil and gas company engaged in the development of the newly discovered Kavango Sedimentary Basin, in northeast Namibia, where the Company holds a 90% working interest in a petroleum licence, comprising approximately 6.3 million contiguous acres.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements: Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on ReconAfrica's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to ReconAfrica. The forward-looking information contained in this release is made as of the date hereof and ReconAfrica undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
SOURCE Reconnaissance Energy Africa Ltd.
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