BW Energy has signed a Letter Agreement (LA) with Reconnaissance Energy Africa Ltd (ReconAfrica) to acquire around 16.8 million common shares and 16.8 million warrants for $16 million in ReconAfrica’s equity raise.
PEL 73, located onshore in northeast Namibia, spans approximately 25,341 km². Two exploration wells are planned for the Damara Fold Belt basin in late 2024, targeting a combined un-risked resource potential of 489 million barrels of oil, according to the latest report by Netherland, Sewell & Associates Inc. (NSAI).
Following the initial wells, a 3D seismic survey of the Kavango Rift basin is scheduled for the second half of 2025, potentially leading to two more exploration wells. Carl Krogh Arnet, CEO of BW Energy, stated that the transaction will strengthen their presence in a key energy region, contributing to Namibia's energy independence and enhancing their understanding of the region’s geology and petroleum systems.