Windhoek – SNC Incorporated has advised ReconAfrica on the drafting, negotiation and finalisation of a Joint Operating Agreement (JOA) with the National Petroleum Corporation of Namibia (NAMCOR) in respect of Petroleum Exploration License No. 73 (PEL No. 73) in the Kavango Basin. ReconAfrica is a Canadian oil and gas company engaged in the opening of the newly discovered deep Kavango Sedimentary Basin, in the Kalahari Desert of north-eastern Namibia and north-western Botswana, where the company holds petroleum licenses comprising approximately 8.5 million contiguous acres.
The JOA was signed on June 11, 2021 in Windhoek, Namibia. The signed JOA will regulate the joint operations for PEL 73 between ReconAfrica and NAMCOR and will advance the petroleum exploration activities in the Kavango Sedimentary Basin. ReconAfrica recently announced positive results from two wells in its Namibian license area. It plans to drill two more wells, up from the three wells initially planned for 2021.
ReconAfrica is the operator of the license and holds 90% of interests in PEL 73, while 10% is held by NAMCOR. NAMCOR’s 10% interest will be carried by ReconAfrica during the exploration phase and should the project shift to development and production, then NAMCOR will be responsible for its own 10% share of costs.
Commenting on the transaction, Shakwa Nyambe, who led the transaction for SNC Incorporated, said “We are delighted to employ our expertise and continue to advise ReconAfrica on the execution of its petroleum exploration project in Namibia. The transaction bears witness to SNC Incorporated’s ability to advise international energy and mining companies undertaking projects in Africa”.
The SNC Incorporated team advising ReconAfrica was led by Shakwa Nyambe (Managing Partner), assisted by Shafimana Shimakeleni (Associate).