ReconAfrica Granted Kavango Basin Exploration Acreage in Botswana
TSX-Venture Exchange listed Reconnaissance Energy Africa Ltd. (ReconAfrica) has been granted a new petroleum licence in the eastern extension of the Kavango basin in north-western Botswana.
The new licence covers an area of 2.45 million acres and is contiguous to ReconAfrica’s existing 6.3 million acre petroleum exploration licence PEL 73 in north-western Namibia. The Namibian licence is believed to hold prospective resources of up to 12.0 Billion Barrels of Oil (Bbbls). With the grant of the Botswana licence, ReconAfrica now holds petroleum licences comprising 8.75 million contiguous acres.
The Botswana licence gives the company exploration rights for an initial 4-year period, which can be renewed for an additional 10-years. ReconAfrica will have a 100% working interest in all petroleum rights from surface to basement. The company stated that it has committed to a minimum work program of US$432,000 for the initial period. Upon declaration of commercial production, ReconAfrica will have the right to enter into a 25-year production licence with a 20-year renewal period.
“As a result of acquiring and interpreting additional tight grid regional aeromagnetic data, ReconAfrica feels it has definitively established the eastern boundary of the Kavango basin, where a deep and high potential section of the basin extends from northeast Namibia into northwest Botswana,” the company said in a statement.
Concurrently, the company also announced the signing of a farm-out option agreement for the Botswana licence with a private company wholly-owned by Mr. Craig Steinke, a related party to ReconAfrica. According to the terms of this agreement, the option will carry a 3-year term providing the farmee with the right to acquire a 50% working interest in the licence.