Will This Exciting Discovery Create The World's Next Oil Nation

FN Media Group Presents Oilprice.com Market Commentary

LONDON, Aug. 6, 2021 /PRNewswire/ -- Namibia has every right to celebrate. It's never produced a barrel, but now, its Kavango Basin test wells have hit hundreds of meters of oil. And the junior exploration company behind it all thinks it might be sitting on a potential mammoth conventional oil play. Mentioned in today's commentary includes: Canadian Natural Resources (NYSE:CNQ), Enbridge Inc. (NYSE:ENB), Baker Hughes (NYSE:BKR), Chevron (NYSE:CVX), Royal Dutch Shell Plc. (NYSE:RDS.A).

On August 5^th, Reconnaissance Energy Africa (RECO, RECAF) and its partner, NAMCOR, Namibia's state oil company, released their most stunning results yet—with lab tests comprehensively confirming an active petroleum system and results from a second test well hitting 350 meters of hydrocarbon showings. That's on top of the first test well's showings of 250 meters of hydrocarbons.

This is a huge showing for this junior company's maiden drills. In fact, it's so huge that optimism is growing that they might have actually test-drilled right into a reservoir on the first shot. Referring to Jarvie's graph below, in zone 2 where the oil saturation exceeds 100, they've drilled into a very thick zone of potential production or reservoir. "It's the primary target for potential production testing." If that doesn't get investors excited I don't know what will.

The first well (6-2) hit over 250 meters of hydrocarbon shows after drilling to a depth of 2,294 meters. The second test well returned 350 meters of hydrocarbon shows after drilling to a depth of 2,780 meters.

Sample logging data and analysis was conducted by Horizon Well Logging Inc, whose CEO, Doug Milham, described the play as "an exciting oil and gas exploration project with world-class potential".

"The presence and quality of oil and gas shows encountered while drilling the 6-2 and 6-1 wells was remarkable, with many positive indicators of hydrocarbons encountered throughout both wells," Milham said. "Our sample logging data and analysis has identified significant intervals of oil and natural gas in each of the two wells drilled, with varying characteristics from multiple zones."

The results mean that RECO and NAMCOR have met all the drilling program requirements to extend the exploration period on this play. Exploration now advances to the next phase, with an ambitious 450-kilometer 2D seismic acquisition already underway, contracted to world-class Polaris.