ReconAfrica announced a highly anticipated operations update, confirming that it has spudded the high impact 6-2 exploration well on the Company’s Petroleum Exploration License 73 (PEL) in Namibia. The well is the first of three planned exploration wells to evaluate the presence of an active conventional system in the Kavango Basin.
While geochemical work and other
studies have estimated that the basin could hold significant in place oil
volumes, exploration drilling is required to fully determine if this is the
case, and RECO is now one step closer to de-risking a massive potential
impact well spudded. Utilizing
a smaller local rig, the initial leg of the well-bore has been drilled, with
the first casing string set and cemented to a total vertical depth (TVD) of
~1,000 feet. Drilling operations are anticipated to begin by mid-January with
intermediate casing expected to reach TVD of ~12,000 feet by the middle of
February. The intent of the program is to prove the existence of quality source
rock which if confirmed would lead to significant upside for shareholders. See
Figure 2 for our sensitivity table.
Key logistical challenges de-risked with the news that the rig has arrived in country and on location of the first of three back-to-back explorations wells. We are also very encouraged that the team has de-risked key logistical challenges by mobilizing the rig and ancillary equipment on site and are now ready to drill the first of three back-to-back explorations wells that could potentially prove up a massive resource.
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