ReconAfrica Expands Exploration in Angola with 5.2 Million Acre MOU Agreement
- ReconAfrica signs an MOU with Angola's ANPG, gaining rights to explore 5.2 million acres in the Etosha-Okavango basin.
- The company will maintain an 80% working interest, with plans for geological studies and seismic programs over the next 24 months.
- ReconAfrica aims to balance economic growth with ecological sustainability while expanding its presence in the Southern African oil and gas sector.
ReconAfrica Expands Exploration Footprint in Angola
Reconnaissance Energy Africa Ltd. (ReconAfrica) takes a significant step in its growth strategy by signing a Memorandum of Understanding (MOU) with Angola's National Oil, Gas and Biofuels Agency (ANPG). This agreement grants ReconAfrica the rights to explore an extensive 5.2 million acres in the Etosha-Okavango basin, complementing the company's existing 6.3 million acres in Namibia. The new exploration area enhances the potential of the Damara Fold Belt and Rift Basin plays, which have shown promising hydrocarbon opportunities. President and CEO Brian Reinsborough emphasizes the positive technical outcomes from recent drilling activities in Namibia, which bolster the company's confidence in the hydrocarbon potential of these geological formations extending into Angola.
Under the terms of the MOU, ReconAfrica will maintain an 80% working interest in the exploration project, while Sonangol, the national oil company, will retain a 20% interest. The company outlines a comprehensive plan for the next 24 months, which includes conducting geological studies, a regional oil and gas seep study, and implementing a 2D seismic program. This strategic exploration effort not only aims to uncover valuable hydrocarbon resources but also aligns with ReconAfrica’s commitment to responsible environmental practices. The company is keen on minimizing habitat disturbance while pursuing its exploration initiatives, showcasing its dedication to balancing economic growth with ecological sustainability.
As ReconAfrica prepares to drill its largest prospect to date, Prospect I, in Namibia, the company targets significant light to medium oil resources, estimated at 365 million barrels of unrisked and 32 million barrels of risked prospective resources, along with substantial natural gas resources. The integration of Angola into ReconAfrica’s portfolio is expected to create considerable value for shareholders and stimulate local employment opportunities in the Okavango region. The recent regulatory reforms in Angola further support the company's expansion strategy, positioning ReconAfrica for a strong presence in the Southern African oil and gas sector.
In addition to its exploration efforts, ReconAfrica emphasizes its commitment to adhering to environmental and social best practices. This focus on sustainability is crucial as the company advances its projects in sensitive ecological areas. The anticipated exploration activities in Angola reflect ReconAfrica’s strategic vision of harnessing regional hydrocarbon potential while promoting responsible development in the regions it operates.