Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF) (ReconAfrica) CEO Brian Reinsborough joined Proactive to talk through the company’s exploration progress and corporate updates.
He highlighted the advancements in the Naingopo well in Namibia, which is nearing its total depth of over 4,000 meters.
Reinsborough also underscored the company’s efforts to reduce corporate costs, achieving savings of over C$1 million, while maintaining agility akin to a startup.
Proactive: The company has put out some news, essentially a corporate update. Could you start by giving an update on your exploration efforts?
Brian Reinsborough: Absolutely. We've been very busy. We've drilled our first well in Namibia, Naingopo-1, and it's nearing its total depth of over 4,000 meters, beyond the originally predicted depth of 3,800 meters. The rig is performing exceptionally well, and we expect to reach total depth late this week or early next week. Afterward, we'll begin an extensive evaluation program, including logging and testing hydrocarbons, which will take a few weeks.
This is a play-opening well, so there's a lot of interest. Our operations team has also been preparing for the second well, Kambundu-1. They've built a 20-kilometer road and a drilling pad. Once we integrate data from Naingopo, we expect to spud the Kambundu well early next year. It's been an exciting and very busy year operationally and on the exploration front.
You're also working on a 3D seismic program, correct?
That’s correct. It's for a different play—the rift play. Years ago, wells drilled in Europe in similar settings produced oil to the surface. We like this play but need better seismic density to guide our drilling. We're planning a 400-kilometer 3D seismic survey—the first onshore 3D seismic survey in Namibia. This groundbreaking effort will help us refine prospects and prepare for drilling by late next year.
Let’s discuss BW Energy and your partnership with them. How significant is this relationship for ReconAfrica?
It’s a very significant partnership. We worked hard to secure a financially capable and well-established partner, and BW Energy was a great choice. We finalized the deal in July, valued at C$197 million. BW Energy has been deeply involved in our efforts, especially in drilling Naingopo. They bring strong in-country expertise, and the financial structure of the transaction supports exploration, appraisal, development, and production. We're set up for long-term success with BW Energy.
You’ve also made progress on the corporate side. Can you elaborate on cost reductions?
We’ve focused on reducing G&A costs, achieving over C$1 million in savings. While ReconAfrica has been around for five or six years, I want it to operate with the agility of a startup—efficient and nimble in decision-making. We’ve reshaped the company from top to bottom, ensuring it’s lean and effective.
Looking ahead to 2025, what should investors expect?
Investors should watch for the Kambundu well early in the year. It has potential for 340 million barrels of oil equivalent and significant gas resources. The 3D seismic survey will begin mid-year, with drilling in the rift play expected by year-end. We're building a continuous exploration program to consistently create value for shareholders.
Quotes have been lightly edited for clarity and style