Reconnaissance Energy Africa Ltd has provided several key updates, including exploration progress at the Naingopo well at PEL 73 in Namibia.
The company said it has drilled the well beyond 2,400 meters, targeting to drill to a depth of approximately 3,800 metres.
“Operationally, things remain on track, with the Naingopo exploration well drilling, on time and on budget,” CEO Brian Reinsborough said in a statement.
“The seismic velocities are running faster than modeled, hence reservoirs are coming in deeper than predicted, with all primary reservoir targets below the current drilling depth.”
Road construction is advancing for a second well, Prospect P, where drilling is slated to kick off later in 2024.
Recent financial highlights included raising $38.8 million in July and $17.5 million in April through public offerings and reducing general and administrative costs by $1 million for the three months ended June 30, 2024, compared to the year-ago quarter.
It has also entered a farm-down agreement with BW Energy, selling a 20% stake in its exploration license for $22 million, with additional potential payments of $171 million based on future milestones.
“Over the past few months, we have improved the company’s balance sheet which enables us to execute our planned multi-well exploration drilling campaign through the completion of two equity financings and our strategic joint venture partnership with BW Energy,” Reinsborough said.
“Through these transactions, the company has maximized capital upfront which allows flexibility to execute our program, and positions us with significant capital available for appraisal, evaluation and development activities.”
Further, the company announced its first Sustainability Report has been completed and will be available on its website next week.
Reinsborough commented: “This report reflects our commitment and efforts as a company to ensure that our exploration activities are balanced with sustainable management practices and stakeholder engagement under our environmental, social and governance programs.”