07:34 AM EDT, 07/08/2024 (MT Newswires) -- Reconnaissance Energy Africa ( RECAF ) , which gained 6.7% to approach 52 week highs, on Monday announced the spudding of the Naingopo exploration well on Petroleum Exploration Licence 73 (PEL 73), onshore northeast Namibia.

The Naingopo well is forecast to reach total depth of 3,800 metres, and take 90 days to drill. This play opening well which may unlock a total potential resource of over 3.1 billion barrels of oil or 18 trillion cubic feet of natural gas based on the most recent prospective third party resource report, the company said. Twenty leads have been mapped and defined so far.

ReconAfrica also said it continues to progress the farm out joint venture process which is expected to conclude soon.

In the past month, the company has received $1.9 million in proceeds from the exercise of warrants. With a recent share price of $1.75, ReconAfrica reports that it has potential proceeds of $35 million from in the money share purchase warrants.