ReconAfrica Strikes Oil Reveals in Namibia, Shares Leap 50%

Reconnaissance Power Africa (ReconAfrica) shares surged greater than 50% on Tuesday after the corporate introduced its Kavango West 1X exploration effectively in northeastern Namibia encountered vital hydrocarbon pay zones. The effectively, drilled on Petroleum Exploration Licence (PEL) 73, has delivered essentially the most encouraging information so far for the corporate’s onshore Damara Fold Belt play.

In keeping with ReconAfrica, the effectively penetrated roughly 400 metres (1,300 ft) of gross hydrocarbon-bearing part within the Otavi reservoir, together with 64 metres (210 ft) of web hydrocarbon pay. In deeper intervals, wireline logs additionally recognized 61 metres (200 ft) of extra hydrocarbon reveals inside naturally fractured limestone, suggesting potential for deeper targets.

Drilling at Kavango West 1X concluded on November 29 after the effectively reached a complete depth of 4,200 metres (13,800 ft). An in depth wireline logging program confirmed roughly 85 metres (280 ft) of web reservoir distributed throughout a number of limestone models. Mud and gasoline samples have been collected and will probably be analyzed in the US, though no core samples have been taken.

The effectively has been quickly deserted and is scheduled for re-entry within the first quarter of 2026 for a full manufacturing take a look at. ReconAfrica plans to run a Tubing-Conveyed Perforating (TCP) take a look at focusing on each the 64 metres of confirmed pay and the deeper 61-metre interval of hydrocarbon reveals. Testing is predicted to final about one month.

CEO Brian Reinsborough known as the outcomes a “success case” for the corporate and a probably pivotal second for the broader Damara Fold Belt. “We’re enthusiastic about what these outcomes imply for the way forward for the play throughout our greater than six million potential acres,” he stated, including that drilling was accomplished safely, on schedule, and on funds.

ReconAfrica holds a 70% working curiosity in PEL 73, partnered with BW Power (20%) and Namibia’s state agency NAMCOR (10% carried).

Traders reacted swiftly to the optimistic replace: ReconAfrica’s shares jumped 31% in Toronto and climbed 33% on U.S. over-the-counter markets following the announcement.

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