OIL AND GAS
ReconAfrica Commits US$17 Million To A New KW1X Drilling
ReconAfrica plans to use the remaining balance of its US$17 million exploration expenditure commitment to drill a horizontal or deviated sidetrack from the KW1X wellbore in Namibia's Petroleum Exploration Licence (PEL) 073.
The Reconnaissance Energy Africa Ltd (ReconAfrica) plans to use the remaining balance of its US$17 million exploration expenditure commitment to drill a new section from its existing KW1X wellbore in Namibia's Petroleum Exploration Licence (PEL) 073, following a one-year extension of its exploration period granted by the Ministry of Mines and Energy (MME) in March 2026.
In its Management's Discussion and Analysis for the three and six months ended 30 June 2026, ReconAfrica said the decision followed testing operations at KW1X and formed part of its revised work programme after the Ministry of Mines and Energy (MME) approved a one-year extension of the Second Renewal Exploration Period in March 2026.
The extension runs until 29 January 2027 and carries a minimum exploration expenditure requirement of US$17 million, which the company is required to meet during the extended period.
ReconAfrica said it had already fulfilled its drilling obligations for the Second Renewal Exploration Period through the Naingopo and KW1X wells.
However, the company had initially expected to meet its additional subsurface data requirement through a three-dimensional (3D) seismic programme before deciding to prioritise KW1X drilling and defer the seismic programme to 2026.
The company said the extension conditions required it to review KW1X production testing results, with the drilling of an additional appraisal well and a Drill Stem Test dependent on those results.
Following the testing operations, ReconAfrica said it had decided to allocate the remaining US$17 million commitment towards the planned sidetrack from the existing KW1X wellbore.
On its partnership with BW Energy Limited (BW Energy), ReconAfrica said the farm-down agreement covers participation in two Damara Fold Belt exploration wells and a 3D seismic programme, with an option for BW Energy to participate in two Kavango Basin exploration wells.
ReconAfrica said BW Energy's initial US$16 million investment is being reduced through its 20% share of operating costs on PEL 073, alongside payments linked to drilling milestones and successful seismic acquisition.
The company added that it does not anticipate further funding from BW Energy for PEL 073 operations until the initial investment has been fully allocated.
