07:34 AM EDT, 05/23/2024 (MT Newswires) -- Reconnaissance Energy Africa ( RECAF ) , which lost more than 4% yesterday, on Thursday gave an operations update for Petroleum Exploration Licence 73 (PEL 73) in northeast Namibia and also update on the joint venture process and the termination of the marketing agreement with FTB Capital.

The company is working to remain on schedule for a June spud of the Naingopo exploration well, the first exploration well in the Damara Fold Belt. ReconAfrica is targeting 163 million barrels of unrisked prospective oil resources or 843 billion cubic feet of unrisked prospective natural gas resources based on the most recent prospective resources report prepared by Netherland, Sewell & Associates.

Advanced planning work has also begun for the second Damara Fold Belt exploration well, Prospect P. That well is expected to spud in the fourth quarter, soon after the drilling of the Naingopo exploration well. The company is targeting 278 million barrels of unrisked prospective oil resources or 1.5 trillion cubic feet of unrisked prospective natural gas resources.

The joint venture process with interested third parties has progressed to the next level of detailed discussions. ReconAfrica is negotiating terms to enable it to execute a multi-well exploration drilling program targeting wells in both the Damara Fold Belt and Rift Basin plays over the next 12 to 24 months. Discussions are expected to conclude in the next several weeks.

Two months after announcing that it had engaged FTB Capital to market the company and raise investor awareness, ReconAfrica has terminated the agreement.