ReconAfrica Sells 20% Stake in Namibian License to BW Energy in $141 Million Deal

ReconAfrica is currently focused on exploring the Kavango Basin and has recently commenced drilling the Naingopo-1 well targeting the Damara Fold Belt.

Reconnaissance Energy Africa (ReconAfrica) has announced the sale of a 20% working interest in Petroleum Exploration License 73, located onshore in Namibia, to BW Energy, an Oslo-listed oil and gas company. The African Energy Chamber (AEC) supports this joint venture, which aims to boost exploration activities in Namibia and bring in working capital with a total potential consideration of $141 million.

The collaboration between ReconAfrica and BW Energy aims to tap into Africa's onshore resources, combining financial strength and technical expertise to drive significant exploration efforts. ReconAfrica is currently focused on exploring the Kavango Basin and has recently commenced drilling the Naingopo-1 well targeting the Damara Fold Belt. The company also plans to execute a multi-well exploration program and a 3D seismic survey in the Kavango Rift Basin. With the new partnership, BW Energy will participate in two Damara Fold Belt exploration wells and the 3D seismic program, with an option to engage in two Rift Basin exploration wells over the next two years. ReconAfrica will maintain a 70% working interest in the license, retaining substantial potential benefits if a discovery is made.

BW Energy brings valuable experience in oil and gas monetization from both emerging and mature markets. The company is already active in Namibia with an operated stake in the Kudu gas field in the Orange Basin. This project, which is in its FEED stage and aims for a final investment decision in 2025, plans to deliver 800 MW of gas-fired power for domestic and regional use. BW Energy also operates the Dussafu Marine license offshore Gabon, which includes the Hibiscus and Ruche Field Development expected to produce 40,000 barrels per day once all wells are completed.

The African Energy Chamber commends BW Energy for expanding its presence in key exploration areas like Namibia, highlighting Africa's promising upstream landscape. The deal includes a $16 million equity investment in ReconAfrica and an additional $45 million in carry payments contingent on a final investment decision. This partnership is expected to accelerate onshore exploration activities and underscores the growing global interest in Namibia's oil and gas resources. With BW Energy set to begin drilling at the Kudu gas project in early 2025, alongside recent offshore discoveries by Shell, TotalEnergies, and Galp, Namibia is poised for another wave of investment from international explorers.

NJ Ayuk, Executive Chairman of the AEC, stated, "ReconAfrica and BW Energy are joining forces to unlock Africa's onshore resources, combining their financial and technical strengths to drive impactful exploration programs. The Chamber supports this strategic partnership, which reinforces Namibia's position as an investor-friendly destination and marks a significant step forward for the African upstream industry."