Reconnaissance Energy Africa Ltd. has signed a memorandum of understanding (MoU) with Agência Nacional de Petróleo, Gás e Biocombustíveis, or National Oil, Gas and Biofuels Agency (ANPG), for a joint exploration project in the Etosha-Okavango basin onshore southeastern Angola.
ReconAfrica said the agreement with Angola’s national concessionaire and regulator is a strategic addition to its portfolio. The company said in a media release that the deal creates an opportunity for early entry into onshore Angola at a low cost and with minimal work commitments.
ReconAfrica said the agreement complements its initiatives in Namibia, adding 5.2 million acres in to the existing 6.3 million acres in Namibia, all in the promising exploration areas of the Damara Fold Belt and Rift Basin.
“The encouraging technical results from our recent Naingopo exploration well on PEL 73 onshore Namibia have strengthened our belief in the significant hydrocarbon potential of the Damara Fold Belt play. Our regional geological models indicate that the promising Fold Belt play, known for hosting some of the world’s largest fields and covering extensive areas, likely extends into Angola”, Brian Reinsborough, President and CEO of ReconAfrica, said. “As a result, we are excited to be entering into a strategic MOU with ANPG.
“Recent regulatory reforms make Angola an attractive jurisdiction for new oil and gas exploration, and we look forward to working with ANPG and Sonangol as we progress our exploration initiatives”.
ReconAfrica said it will hold an 80 percent working interest in the MoU area, with Sonangol holding 20 percent. It will also have exclusive rights during the MoU term.
ReconAfrica will lead geological studies, carry out a regional oil and gas seep study, and organize a 2D seismic program. Additionally, it said it will conduct comprehensive geochemical analysis and sampling of any identified oil and gas seeps within the MOU area over the next 24 months.
ReconAfrica also said it is preparing to begin drilling on the Prospect I onshore Namibia, some 47 kilometers (29 miles) from the MoU area in Angola.
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