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AfrOil NEWS IN BRIEF AfrOil

UPSTREAM even more commercially attractive in view of conventional fault and stratigraphic hydrocar-
the recent decline in oil prices. The Potential bon bearing structures. This work builds on the
Zenith Energy announces JV Acquisition has two key qualities that render it unconventional potential previously identified
highly compatible for our portfolio: near-term for Kavango Basin.
agreement for acquisition profitable production potential and significant including regional maps and more specific
A full documentation of this recent work,
development potential to progressively max-
of second oil production imise production on account of the potentially play maps, are now available on the Company’s
highly significant oil reserves in place which will website.
asset in Republic of Congo require independent evaluation under Canadian ReconAfrica is a junior oil and gas company
National Instrument 51-101. I look forward to engaged in the opening of the newly discovered
ZENITH Energy has entered into a joint venture further updating shareholders in due course deep Kavango Sedimentary Basin, in north-
agreement with a local oil and gas company in on our exciting progress in the Republic of the eastern Namibia and northwestern Botswana,
the Republic of the Congo. Congo.” where the Company holds petroleum licences
The primary objective of the Agreement is the Zenith Energy, July 07 2020 comprising approximately 8.75mn contiguous
potential acquisition of an onshore oil produc- acres (35,410 square km).
tion licence, last producing at a rate of approxi- ReconAfrica completes ReconAfrica, July 07 2020
mately 300 barrels per day (bpd) of oil from the
regionally proven Mengo formation as recently technical evaluation of the Sound Energy concludes
as 2019. Production has currently been sus-
pended pending the assignation of a new licence. conventional structures in re-negotiation of terms of
The Potential Acquisition is located in the
Kouilou region of the Republic of the Congo in the Kavango Basin Anoual exploration permits
proximity of Pointe-Noire, the country’s second
largest city, and is also in the vicinity of Tilapia, Reconnaissance Energy Africa (ReconAfrica) in eastern Morocco
the Company’s recently acquired oil produc- has completed a comprehensive subsurface
tion asset with transformational production evaluation delineating large scale, prospective Sound Energy, the Moroccan focused upstream
potential. conventional hydrocarbon bearing structures, gas company, has announced that it has, together
Under the terms of the Agreement, the Com- throughout the entire Kavango Basin. with its licence partners, successfully concluded
pany and its local partner will jointly submit The primary objective of ReconAfrica’s ini- a re-negotiation of the terms of its Anoual Explo-
an application to the relevant authorities in the tial three well drilling programme, scheduled for ration Permits with Morocco’s National Office
Republic of the Congo, including the Ministry Q4-2020, is to confirm a thick, active, petroleum of Hydrocarbons and Mines (ONHYM) which
of Hydrocarbons, for the award of a new licence system throughout the deep Kavango basin. Spe- aligns the work programme commitments on
in relation to the Potential Acquisition. cifically, the wells are designed to test organic the Permit and the Company’s continued pursuit
Further, in accordance with the Agreement, rich shales and more shallow conventional struc- to unlock the exploration potential of the East-
it is stipulated that Zenith shall have the role of tures throughout the sedimentary basin. ern Morocco basin, with the expected phasing
joint operator and majority partner in the event With support of a new extended, high density of the Company’s recently announced Tendrara
that a new licence is successfully obtained in rela- Aero-Mag survey and Halliburton’s advanced Production Concession Phase 1 development
tion to the Potential Acquisition. LithoTect® technology, and other new ancillary plan.
Following preliminary technical analysis of data, the Company’s technical team has gener- The Permit, which became effective on
the Potential Acquisition, as part of the due dili- ated a thorough understanding of how this deep August 31, 2017 and covers an area of some
gence activities conducted prior to entering into Permian rift basin developed. 8,873 square km has a duration of eight years
the Agreement, Zenith is confident that profita- Specifically, the Company has been able to and, as with all Moroccan exploration permits, is
ble oil production operations can be achieved, identify the faulting system throughout the divided into three phases with each phase having
following the reactivation of the Potential Acqui- basin, responsible for developing potential pre-agreed work commitments.
sition and the performance of targeted, low-in-
tensity workover activities.
The Potential Acquisition is in line with the
Company’s strategy of identifying near-term
production and development assets in Africa
which have material, near-term production
potential.
Andrea Cattaneo, Chief Executive Officer,
commented: “As is known by shareholders, the
Company’s senior management is currently in
the Republic of the Congo conducting nego-
tiations with the relevant authorities for the
attribution of a new 25-year licence in relation
to the highly prospective Tilapia asset. Our
presence in the cities of Pointe-Noire and Braz-
zaville, the capital of the Republic of the Congo,
has facilitated access to a number of compelling
domestic opportunities, which have become

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