Major Oil Companies Believe Namibia is Africa's Next Oil Hot Spot
Financialnewsmedia.com News Commentary
PALM BEACH, Florida, Dec. 12, 2019 /PRNewswire/ -- Namibia may hold as much oil as the pre-salt fields offshore Brazil, which holds 16 billion barrels of crude reserve, says Andrew Sekandi, an investment adviser at Alpha Sierra, as quoted by The Africa Report. It's why Exxon Mobil acquired seven million net acres to expand its exploration acreage in offshore Namibia through an agreement with the government of Namibia and the NAMCOR, the state oil company of Namibia. Shell may have also spotted potential opportunity in the region, as well, believing there's a deep water petroleum-system offshore. At the moment, Shell is working in collaboration with American upstream oil company Kosmos Energy and NAMCOR with plans to drill in early 2021. All of that is creating a wide range of opportunity for companies including Reconnaissance Energy Africa Ltd. (TSX-V: RECO)(OTC:LGDOF), Exxon Mobil Corporation (NYSE:XOM), Royal Dutch Shell PLC (NYSE:RDS-A), Chevron Corporation (NYSE:CVX), and BP PLC (NYSE:BP).
Reconnaissance Energy Africa Ltd. (TSXV:RECO)(OTC:LGDOF) BREAKING NEWS: Reconnaissance Energy Africa Ltd. just announced it has engaged Henderson Rigs of Houston, Texas for the purpose of procuring a North American drilling rig and ancillary equipment, specifically designed for Namibian logistics and drilling depths of the Kavango Basin. Henderson Rigs, with locations in Houston and Odessa, Texas and Nisku, Alberta, is a recognized specialist in drilling rig acquisition, refurbishment, rig certification and ongoing support maintenance, providing its services globally to E&P companies and major drilling contractors. Henderson Rigs has been instrumental in identifying several Texas based drilling rigs ideally suited for drilling in the Kavango basin. ReconAfrica is currently conducting a final technical review of these rig options, in view of securing the best option prior to year-end 2019. In keeping with ReconAfrica's expected growth and focus in Namibia, the Company has completed a process for review of its external auditors in 2019. Following completion of the review, the Board of Directors (on the recommendation of the Audit Committee) determined that Deloitte LLP is to be appointed as auditor for the 2019 fiscal year. Deloitte LLP is a global professional services firm with offices in the jurisdictions where the Company conducts its business