ReconAfrica Announces Initiation of Horizontal Drilling at KW1X - Flow Test Results Expected Prior To Year-End

ReconAfrica resumes drilling at KW1X with flow test results expected before year-end.

What the company is saying

Reconnaissance Energy Africa Ltd. (TSXV:RECO, OTCQX:RECAF, FRANKFURT:0XD) is announcing the restart of drilling at the Kavango West 1X (KW1X) well in Namibia, following receipt of all necessary regulatory approvals, including an Environmental Clearance Certificate and a horizontal drilling permit amendment. The company emphasizes operational progress, highlighting that sidetrack drilling has begun after setting the whipstock at a vertical depth of 2,289 metres. The partnership structure is made explicit: BW Energy holds a 20% working interest, and the National Petroleum Corporation of Namibia holds a 10% carried working interest. The narrative is forward-leaning, focusing on the technical design of a horizontal wellbore up to 1,000 metres in the Huttenberg formation and the potential to intersect thousands of natural fractures. The company frames the upcoming open-hole flow testing as a key milestone, aiming to establish flow rates and reservoir characteristics, with results to be disclosed before year-end. Asset scale is emphasized, with 13 million contiguous acres in southern Africa and a 1,214 km2 offshore block in Gabon. The tone is confident and operationally detailed, with Brian Reinsborough (President & CEO) and Mark Friesen (VP, IR & Capital Markets) named as contacts.

What the data suggests

The announcement confirms that all required permits for KW1X have been secured and that sidetrack drilling has commenced, with the whipstock set at 2,289 metres. The sidetrack targets a horizontal wellbore of up to 1,000 metres, aiming to maximize intersection with natural fractures in the Huttenberg formation. Flow testing is scheduled to begin immediately after drilling is complete, with a testing window of up to one month and results expected before the end of 2026. The partnership structure is clear: BW Energy holds a 20% working interest, and the National Petroleum Corporation of Namibia holds a 10% carried interest. ReconAfrica’s asset base includes approximately 13 million contiguous acres in Namibia, Angola, and Botswana, as well as the 1,214 km2 Ngulu block offshore Gabon, which contains the Loba oil field discovery. No production, reserves, or financial figures are disclosed, and the update is strictly operational. The timeline for the next catalyst—flow test results—is near-term and specific.

Analysis

The announcement provides a factual update on the resumption of drilling and upcoming flow testing at the KW1X well, supported by specific operational milestones such as permit approvals, commencement of sidetrack drilling, and detailed well design. However, several claims are forward-looking, including the potential to transect thousands of fractures, the intent to maximize flow rates, and the expectation of flow test results by year-end. These statements are aspirational and not yet realised, but the timeline for results is near-term (within 2 months). The language around the scale of acreage and asset inventory is promotional but not misleading, as it is supported by disclosed figures. No large capital outlay or immediate financial impact is discussed, and there is no evidence of overstatement regarding financial outcomes. The gap between narrative and evidence is moderate, with some technical optimism but no egregious inflation.

Risk flags

• ●Operational risk is significant, as the commercial viability of KW1X depends entirely on the upcoming flow test results; if the well fails to deliver sustained flow rates or commercial yields, the project could stall despite technical progress.
• ●Regulatory risk remains, as ongoing operations in Namibia require continued compliance with environmental and drilling permits; any future delays or changes in regulatory stance could impact timelines or project viability.
• ●Disclosure risk is present, as the company provides no financial, production, or resource estimate data, making it impossible to assess economic potential or capital requirements until flow test results are released.
• ●Partnership and alignment risk exists, since BW Energy and the National Petroleum Corporation of Namibia hold material interests (20% and 10% carried, respectively); future project decisions and economics will be influenced by these partners’ priorities and any changes to the joint venture structure.

Bottom line

ReconAfrica has restarted drilling at KW1X in Namibia, with all necessary permits in hand and a clear operational plan targeting a horizontal wellbore of up to 1,000 metres. The partnership with BW Energy (20% interest) and the National Petroleum Corporation of Namibia (10% carried) is established, and the company controls a large exploration acreage position in southern Africa and Gabon. The next major catalyst is the outcome of flow testing, which is scheduled to conclude within one month and be reported before year-end. Until flow test results are available, the commercial potential of KW1X and the broader asset base remains unproven. Investors should focus on the imminent flow test data, as this will determine whether the project advances toward development or faces further delays. The most important takeaway is that a binary technical result is expected within weeks, and the investment case hinges on that outcome.

Announcement summary

(TSXV:RECO) (OTCQX:RECAF) (FRANKFURT:0XD) Reconnaissance Energy Africa Ltd. (ReconAfrica), together with its partners BW Energy (20% working interest) and the National Petroleum Corporation of Namibia (10% carried working interest), has announced the resumption of drilling at the Kavango West 1X (KW1X) well ahead of final open hole horizontal flow testing. The partnership has received all required permit approvals to resume horizontal drilling and flow testing activities at KW1X, including the Environmental Clearance Certificate and the horizontal drilling permit amendment. Following these approvals, the whipstock has been set and sidetrack drilling at KW1X has commenced. Production casing was removed to a vertical depth of 2,289 metres, where the open-hole whipstock was set in place. Drilling of the sidetrack has begun and is scheduled to take approximately one month. The sidetrack well design targets a horizontal wellbore of up to 1,000 metres in the upper zone of the Huttenberg formation to intersect natural fractures across the Kavango structure. The horizontal well bore could potentially transect thousands of vertical or near vertical natural fractures. The well will be completed “open hole,” without casing or cement, to maximize flow rate from the natural fracture system. Flow testing will occur immediately after well completion and will be tested after the wellbore has been swabbed to remove all drilling muds and cuttings but prior to an acid wash. Flow testing is intended to establish sustained flow rates, reservoir pressure response, and the liquid yield and composition in the production flow stream. Additional fluid and gas samples will be collected for laboratory analysis. Testing could take up to one month, with flow test results expected to be disclosed prior to year-end. ReconAfrica holds petroleum licences and access to approximately 13 million contiguous acres in the Damara Fold Belt and Kavango Rift Basin in the Kalahari Desert of northeastern Namibia, southeastern Angola, and northwestern Botswana. The company also operates the Ngulu block in the shallow waters offshore central Gabon, covering 1,214 km2 (equivalent to 54 Gulf of Mexico blocks), which includes the Loba oil field discovery and a large inventory of high impact prospects in the pre-salt and post-salt plays. ReconAfrica states its commitment to minimal disturbance of habitat in line with international standards and to implementing environmental and social best practices in its project areas. Brian Reinsborough is President & Chief Executive Officer, and Mark Friesen is Vice President, Investor Relations & Capital Markets.

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