Reconnaissance Energy Africa Ltd. continues to explore Exploration License (PEL) 73 in northeast Namibia with a vertical flow test of the Kavango West 1X (KW1X) discovery and plans for a horizontal open hole test.

The purpose of the vertical production testing program was to determine which parts of the reservoir, if any, could flow hydrocarbons to surface. The uppermost zone of the Huttenberg formation in KW1X flowed natural gas and potential liquid content to surface immediately upon perforation, ahead of any acid stimulation, and was flared through the relief flare stack. Flow rates were not measured from the Huttenberg due to previously disclosed equipment limitations.

Production samples, including both natural gas and potential liquid content, have been collected with results of the compositional analysis expected in the coming weeks.

This test result completes vertical production testing operations at KW1X. The production tests established that two of the six zones of interest identified in the well contained hydrocarbons capable of flowing to surface.

Vertical wells are not the optimized development design for this fractured reservoir. An open-hole horizontal well is required to achieve maximum reservoir penetration and optimal fracture intersection, consistent with the natural fracture orientation observed in the reservoir. Horizontal development of the Damara Fold Belt structures is also expected to reduce surface land disturbance as well as the number of wells required per structure, resulting in lower field development costs and improved capital efficiency.

The next step in testing, therefore, involves drilling an open-hole horizontal section for production testing in the upper Huttenberg zone, with an option for an additional horizontal test in the uppermost zone of the Elandshoek formation. The test will establish a representative flow rate over a large, exposed reservoir section uninhibited by production casing, cement, and perforations.

The Huttenberg formation was selected for the initial horizontal test based on the flow of natural gas and potential liquids to surface, 75 m of pay identified from original well log analysis, presence of matrix porosity between large natural fractures, and a longer horizontal lateral section due to being about 600 m shallower than the Elandshoek.

The current well design contemplates a horizontal lateral of up to 1,000 m to optimally intersect these natural fracture swarms observed from formation imaging log (FMI) analysis from wells drilled through the Otavi reservoir. These fractures have inclinations of 50-90°, with most fractures being vertical to near vertical. The horizontal well will be drilled perpendicular to the fracture orientation. 

The Jarvie-1 rig remains on location to drill the horizontal sidetrack laterals. ReconAfrica has procured two high pressure pumps, a swabbing unit, additional supporting equipment, and has contracted H2OIL to conduct surface operations and an appropriately sized separator unit. Halliburton will continue to provide downhole equipment and services. 

The company continues to advance permitting and preparations of the Kavango West 2A (KW2A) appraisal well. Once the horizontal production test at KW1X is complete, the partners plan to move to drill a horizontal well and conduct an open-hole horizontal production test at the KW2A location to establish reservoir extent and communication.

ReconAfrica is the operator of PEL 73 (70%) with partners BW Energy Ltd. (20%) and the National Petroleum Corp. of Namibia (NAMCOR, 10%).