Select Page

Recon Africa to commence drilling programme on Kavango Basin in June

Recon Africa to commence drilling programme on Kavango Basin in June

Namibian-based junior oil and gas company, Reconnaissance Energy Africa recently entered
into a binding Asset Purchase Agreement with Houston-based Henderson to for the acquisition of the Crown 750 drilling rig.

The rig, which has an initial cost of US$1.8 million (approx N$26.8 million), is anticipated to be on the first drilling location in the Kavango Basin by the second half of June this year from where the first test drills will commence on the newly found oil play.

As a result of comprehensive discussions with international drilling contractors, management concluded the acquisition of a company-owned rig is approximately 45% of the cost of hiring an international drilling contractor for its Namibian project.

Recon Africa stated by acquiring a rig located in Houston, there are significant time and cost benefits as the rig will be shipped directly by sea from the Port of Houston to the Port of Walvis Bay, Namibia. Once in Walvis Bay the rig will be transported over land by way of the paved highway directly to the Company’s Kavango Basin license area.

“We were able to acquire this high-quality rig at a significant discount of the cost to build, as it is truly a buyer’s market. This rig is very well suited to execute the Company’s initial program of drilling, logging and coring three deep wells in the Kavango Sedimentary Basin this year,” said Jay Park, CEO Recon Africa.

The Kavango Basin oil play is ranked second by www.oilprice.com as it has Karoo geology, and it’s also been shown to have the same depositional environment as Shell’s Whitehill Permian shale play, part of the Karoo Supergroup in South Africa.

Furthermore, Bill Cathey CEO and Chief Geoscientist of Houston-based Earthfield Technologies and a member of the Company’s Technical Advisory Team spoke to the prospectiveness of the Kavango Basin, affirming that “in my experience, I haven’t seen a basin this deep anywhere in the world, that hasn’t produced commercial quantities of hydrocarbons.”

Recon Africa holds a 90% working interest in petroleum licenses comprising approximately 6.3 million contiguous acres in the Kavango Sedimentary Basin. The license entitles Recon Africa to obtain a 25 year production licence.


 

About The Author

Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys

Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.