Reconnaissance Energy Acquires Rig for Namibia Drilling

Namibia-focused Reconnaissance Energy Africa has entered into an agreement with Henderson Rigs (Houston) for the acquisition of a Crown 750 rig for drilling in the Kalahari Desert, the company said February 4.

The primary objective of the initial three-well programme is to penetrate key source rocks within the Karoo Supergroup providing evidence of an active petroleum system throughout the Kavango sedimentary basin. Secondary objectives are to assess oil and gas prone conventional targets, it said.

The initial cost of the rig is $1.8mn of which the company has provided Henderson Rigs with a non-refundable deposit of $450,000 with the balance of $1.35mn payable on or before February 10. The company will also bear rig improvement costs of approximately $1.2mn. Therefore, all-in costs when the rig is ready to transport will be approximately $3mn, Reconnaissance Energy Africa said.

Reconnaissance Energy Africa holds a 90% interest in a petroleum exploration licence in northeast Namibia which covers the entire Kavango sedimentary basin. The exploration licence covers an area of approximately 6.3mn acres. According to the company, the Kavango basin offers both large scale conventional and non-conventional play types.