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Reconnaissance Energy (Africa) Ltd V.RECO

Alternate Symbol(s):  RECAF

Reconnaissance Energy Africa Ltd. is a Canada-based oil and gas company. The Company is engaged in the opening of Kavango Sedimentary Basin in the Kalahari Desert of northeastern Namibia and northwestern Botswana. It holds 90% interest in a petroleum exploration license in northeast Namibia and a 100% interest in petroleum exploration rights in northwest Botswana over the entire Kavango Sedimentary Basin. The Company's exploration license covers an area of approximately 25,341.33 square kilometers (6.3 million acres) and 8,990 km2 (2.2 million acres) in Botswana. The two licenses together comprise 34,325 sq km (8.5 million acres). Its conventional drilling program is focused on analyzing the rocks to determine if there is a working petroleum system in the Kavango Basin.


TSXV:RECO - Post by User

Comment by TurnToTheRighton May 06, 2021 12:42am
277 Views
Post# 33138578

RE:why would they do that ?

RE:why would they do that ?I would be very surprised if they bought another rig. They need to know what the reservoir "looks" like (commercial hydrocarbon intervals, depth, expanse of the reservoir, the homogeneity of the reservoir, the appropriateness of utilizing horizontal and pad drilling) before they can determine what type of rig is necessary for future development (that's likely a few years off). It's likely going to have to be a rig more substantial than a carrier mounted rig, but appropriate rig moving equipment/crews would be needed for just about any other type of rig (super single, tele-double, jack knife double, triple, pad/walking triple).

I would guess that rig(s) would be mobilized once appraisal and development wells are planned to be drilled. Economies of scale has the potential to be a big help when securing services required for development. I would guess the added funds would be used for further exploration or strat wells, as well as more comprehensive G&G data gathering.
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