11:03 AM EDT, 04/17/2025 (MT Newswires) -- Reconnaissance Energy Africa (RECO.V) on Thursday agreed with the Agencia Nacional de Petroleo, Gas e Biocombustiveis or National Oil, Gas and Biofuels Agency (ANPG) for a joint exploration project in the Etosha-Okavango basin, located onshore in southeastern Angola.

ANPG is Angola's national concessionaire and regulator. The company said this strategic addition complements ReconAfrica's activities in Namibia and highlights the potential of the Damara Fold Belt and Rift Basin by adding 5.2 million acres in Angola to the existing 6.3 million acres in Namibia in the highly prospective Damara Fold Belt and Rift Basin exploration plays.

"The encouraging technical results from our recent Naingopo exploration well on PEL 73 onshore Namibia have strengthened our belief in the significant hydrocarbon potential of the Damara Fold Belt play. Our regional geological models indicate that the promising Fold Belt play, known for hosting some of the world's largest fields and covering extensive areas, likely extends into Angola, said Chief Executive Brian Reinsborough.

"Recent regulatory reforms make Angola an attractive jurisdiction for new oil and gas exploration, and we look forward to working with ANPG and Sonangol as we progress our exploration initiatives," added Reinsborough.

Ownership interest in the MOU Area will be ReconAfrica with an 80% working interest and Sonangol with a 20% working interest. with ReconAfrica having exclusive rights during the MOU term.

ReconAfrica will initiate and coordinate geological studies, conduct a regional oil and gas seep study, and plan for a 2D seismic program, as well as perform detailed geochemical analysis and sampling of any oil and gas seeps identified within the MOU area, over a 24-month period, under the MOU.

The company also added that it is preparing to begin drilling on Prospect I onshore Namibia, which is located 47 kilometers from the MOU area in Angola.

Shares of the company were last seen up $0.01 to $0.54 on the TSX Venture Exchange.

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