RECONAFRICA ANNOUNCES AN UPDATED INDEPENDENT THIRD-PARTY RESOURCE REPORT FOR THE DAMARA FOLD BELT ONSHORE NAMIBIA
REPORT HIGHLIGHTS(1)
- Gross to the Company unrisked, prospectiveoil in place in identified prospects of 15.4 billion barrels
- Gross to the Company unrisked, prospectiveoil resources in identified prospects of 3.1 billion barrels
(1) |
There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. |
Brian Reinsborough, President and CEO commented: "Since assuming the role of CEO in August of last year, I have assembled a team of experienced explorationists, led by
A copy of the Report can be found on SEDAR+ at www.sedarplus.ca.
The Report highlights an increase in Prospective Oil Resources since the last previous report (dated
The Report reflects estimates of Prospective Resources from 19 identified prospects which are viable drilling targets. The Report also includes estimates of Prospective Resources from four leads which require more data acquisition and/or evaluation to be classified as a prospect.
Each opportunity in the inventory has been qualitatively assessed for the chance of oil versus gas, and accordingly assigned as a risk factor for finding oil. NSAI has summarized the volumes assuming oil discoveries because there is generally a higher volume weighted chance of discovering oil in the petroleum system than gas.
Summary of Best Estimate (2U)(1) Undiscovered Original Oil-In-Place (MMbbl)(2)
|
Gross (100%) |
Company Gross (90%) |
Prospects |
17,118 |
15,406 |
Leads |
765 |
689 |
Best Estimate (2U)(1) Prospective Oil Resources (MMbbl)(3)
|
Unrisked(4) |
Risked(5) |
||||
|
Gross (100%) |
Company |
Net(6) |
Gross |
Company |
Net(6) |
Prospects |
3,424 |
3,081 |
2,927 |
226 |
203 |
193 |
Leads |
153 |
138 |
131 |
6 |
5 |
5 |
Note: Prospective resources are the arithmetic sum of multiple probability distributions.
- 2U is the best estimate scenario of prospective resources.
- Undiscovered Original Oil-In-Place is that quantity of oil that is estimated on a given date to be contained in accumulations yet to be discovered. The recoverable portion of undiscovered Original Oil-In-Place is referred to as prospective resources; the remainder is unrecoverable. Oil volumes are expressed in millions of barrels (MMbbl); a barrel is equivalent to 42 US gallons.
- Prospective Resources are those quantities of oil estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
- Unrisked Prospective Resources – these estimates are the volumes that could reasonably be expected to be recovered in the event of the discovery and development of these prospects.
- Risked Prospective Resources – these estimates are based on unrisked prospective resources that have been risked for change of discovery and change of development. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development.
- Net prospective resources are company gross (90%), after royalty deductions of 5%.
NSAI has also conducted an alternate assessment of prospective resources assuming gas discoveries, which is based on last year's Damara Fold and Thrust Belt Area resource assessment. The alternate assessment can be viewed in the Report in Appendix Page A-1. Both cases were run with identical input parameters with the exception of formation volume factor, which was modified slightly for the gas case.
The Company expects to file its annual Canadian Securities Administrators National Instrument Form 51-101F1 with an effective date of
About ReconAfrica
ReconAfrica is a Canadian oil and gas company engaged in the opening of the newly discovered deep
Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements:
Certain statements contained in this press release constitute forward-looking information under applicable Canadian,
Disclosure of Oil and Gas Information:
The report of
The prospective resources shown in the NSAI Report have been estimated using probabilistic methods and are dependent on a petroleum discovery being made. If a discovery is made and development is undertaken, the probability that the recoverable volumes will equal or exceed the unrisked estimated amounts is 90 percent for the low estimate, 50 percent for the best estimate, and 10 percent for the high estimate. Low estimate and high estimate prospective resources have not been included in the NSAI Report. For the purposes of the NSAI Report, the volumes and parameters associated with the best estimate scenario of prospective resources are referred to as 2U. The 2U prospective resources have been aggregated beyond the prospect and lead level by arithmetic summation; therefore, these totals do not include the portfolio effect that might result from statistical aggregation. Statistical principles indicate that the arithmetic sums of multiple estimates may be misleading as to the volumes that may actually be recovered.
Abbreviations:
MMbbl |
= |
millions of barrels |
OOIP |
= |
Undiscovered Original Oil in Place |
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