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Reconnaissance Energy Africa Ltd (TSX-V: RECO) (ReconAfrica)
recently spudded the 6-2 exploratory well within the Namibian
portion of the Owambo Basin, onshore Namibia. It is the first
exploration well to be drilled within the basin in almost 30 years
and the most westerly to date. The company is hoping to establish
the presence of a good quality source rock which in turn would open
the basin to unconventional and potentially conventional
exploration. It would also hint to the potential in analogous
frontier basins in South Africa, Namibia, Angola, Zambia, Botswana
and Zimbabwe.
The Owambo Basin straddles the Angola/Namibia border; Angola
plans to divide its interior basins into blocks by end 2021, any
success ReconAfrica has will likely expediate that process. The
basin is located adjacent to the similar aged Okavango Basin in
which large tracts are already licensed in Botswana and Zambia and
will be subdivided into blocks in Angola. Analogies with the
Nama-Kalahari and Karoo basins can be drawn, both of which are a
focus for unconventional explorers. ReconAfrica compares the
stratigraphy of its Namibian acreage to the central portion of the
Karoo Basin, where supermajor Shell is awaiting the official award
of acreage for shale gas exploration. The Council for Geoscience is
currently drilling a deep stratigraphic well as part of its Karoo
Deep Drilling Project aimed in part at establishing the quality of
the Karoo Permian aged source rocks in the Ecca Group. In the
Owambo Basin, the ReconAfrica drilling campaign will provide
analogous data for the equivalent Prince Albert Formation.
There are currently two gas projects being advanced within the
Karoo basin, neither of which are currently making use of
unconventional techniques to produce. Renergen (ASX: RLT) holds the
only onshore production right in South Africa and is looking to
start LNG production from its Virginia gas project in late 2021,
Kinetiko (ASX: KKO) another Australian-listed junior, was recently
awarded a bulk gas production and removal grant and is planning
pilot production. Within the Botswanan portion of the Nama-Kalahari
Basins both Tlou Energy (ASX: TOU) and Strata-X Energy (ASX: SXA)
are advancing Coal Bed Methane Projects, both Permian sourced and
reporting large prospective resources.
Several Upper Carboniferous rift basins in the region may also
receive an injection of interest including Zambia's Luangwa and
Lukusashi basins and the Rafunsa Basin which straddles Zambia,
Zimbabwe and Mozambique borders. Invictus Energy (ASX: IVN) plans
to drill a conventional exploration well within its Zimbabwean
acreage in late 2021; should the ReconAfrica campaign prove
successful, it may improve Invictus Energy's prospects of
partnering prior to drilling or indeed drilling at all.
Ultimately ReconAfrica's three-well campaign should shed light
on Permian aged source rocks and possibly establish reservoir
formations within the Owambo Basin. This may hint towards the
potential in analogous basins. Any progress towards unconventional
exploration is likely to face significant environmental resistance
- water and protected areas being key issues within almost all of
the basins that may show unconventional potential.
Justin Cochrane is an Associate Director at IHS
Markit. Cyril Ruchonnet is an Associate Director at IHS
Markit. Enrico Pedica is a Senior Geospatial Analyst at IHS
Markit.
