Page 18 - AfrOil Week 28 2020

AfrOil
NEWS IN BRIEF
AfrOil
e Botswana lands are contiguous to the Com- pany’s 6.3mn acre (25,500 square km) petroleum licence in northeast Namibia.
As a result of acquiring and interpreting addi- tional tight grid regional aeromagnetic data, ReconAfrica feels it has de nitively established the eastern boundary of the Kavango basin, where a deep and high potential section of the basin extends from northeast Namibia into northwest Botswana. As a consequence, Recon- Africa has successfully acquired the Licence covering the eastern part of the entire Kavango basin.
Terms of the Licence are as follows:100% working interest in all petroleum rights from surface to basement; an initial four-year explo- ration period, with renewals up to an additional 10 years, in accordance with the Botswana Petro- leum (Exploration and Production) Act; upon declaration of commercial production, the oper- ator holds the right to enter into a 25-year pro- duction licence with a 20-year renewal period, in accordance with the Botswana Petroleum (Exploration and Production) Act; royalties associated with the production licence will be subject to negotiation, in accordance with the Botswana Petroleum (Exploration and Produc- tion) Act, and generally range from 3% to 10% of gross revenue from production; the Company has committed to a minimum work program of $432,000 over the first four-year exploration period; the corporate tax rate in Botswana is 22%.
e acquisition and analysis process of the Botswana lands and initial data set used to de ne the most eastern portion of the Kavango basin in Botswana was initiated over the past several years by a private company, controlled by Craig Steinke, a related party to ReconAfrica.
While Steinke was proceeding with the
application process, he proposed a joint venture with ReconAfrica. In consideration of Steinke allowing ReconAfrica to lead the acquisition and operate the Botswana lands, the Company, through its wholly-owned Botswana subsid- iary, has entered into a farm-out option agree- ment with a private company wholly-owned by Steinke under the following terms: the farm- out option will carry a three-year term provid- ing the Farmee with the right to acquire a 50% working interest in the Licence; initial payment from the Farmee to ReconAfrica is CAD100,000 ($73,567.50); if the Option is exercised within 18 months of the date the Licence was awarded, the Farmee will pay ReconAfrica CAD1mn ($735,675) upon transfer of the Licence follow- ing exercise; if the Option is exercised between 18 months and 36 months from the date the Licence was awarded to ReconAfrica, the Farmee will pay ReconAfrica CAD1.5mn ($1.104mn) upon transfer of the Licence following exercise.
e Agreement is subject to certain condi- tions, including the approval of the Botswana Department of Mines and Ministry of Mineral Resources, Green Technology and Energy Secu- rity (MMR) to the transfer of the Licence upon exercise of the Option.
The Agreement may be terminated if the MMR does not provide its approval to the trans- fer within six months following exercise of the Option, the transfer is not completed within six months following the exercise of the Option, or by mutual agreement.
Due to travel restrictions precipitated by the COVID-19 pandemic, the Company has deferred drilling operations which were origi- nally scheduled to commence by June 30, 2020. As Namibia was only lightly affected by the COVID-19 virus, with only 29 con rmed cases (16 recoveries and 13 active cases) as of the date of
this news release, guidance from Namibia on the timing of li ing international travel restrictions suggests international travel will commence in July or August, 2020. As a result, ReconAfrica’s revised drilling schedule, subject to the li ing of travel restrictions in a timely manner, includes shipping the Company’s Crown 750 drilling rig from Houston, Texas to Walvis Bay, Namibia on or before the second week of September with an anticipated spud, of the rst of the three initial wells, in late October 2020.
ReconAfrica is a junior oil and gas company engaged in the opening of the newly discovered deep Kavango Sedimentary Basin, in northeast- ern Namibia and northwestern Botswana where the Company holds petroleum licences compris- ing approximately 8.75mn acres (35,410 square km).
ReconAfrica, July 11 2020
SERVICES
Mammoet completes
heavy lifting and transport
scope for Dangote plant,
the largest single-train oil
refinery in the world
With the nal 1,240-tonne propylene mounded bullet installed at Dangote Petroleum Re nery and Petrochemical complex in Nigeria, Mam- moet is demobilising equipment it has deployed there over the past two years. is concludes another successful project completed safely and delivered on time.
Mammoet was contracted to assist in the construction of the re nery in 2018. e scope consisted of receiving, inland transport, on-site li ing and installation of hundreds of re nery components.
Sourced globally and consisting of multiple shipments, these components were delivered to the purpose-built Dangote Quay Lekki in Lagos. ey were then transported to the project site. Prior to installation, the components were stored temporarily on freshly paved Enviro-Mat; Mam- moet’s innovative and sustainable solution for native soil improvement, which was deployed to provide the main crane hard stands.
To optimise the construction process and schedule and ensure the highest levels of con- struction uptime, Mammoet has drawn on its diverse eet of heavy li ing and transport equipment. is has included conventional trail- ers and trucks, SPMTs, plus mobile and crawler cranes ranging in capacity from 250 tonnes to 1,600 tonnes.
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Week 28 15•July•2020