The stock of Reconnaissance Energy (Africa) Ltd (OTCMKTS: RECAF) rose to $9.23. This company and the National Petroleum Corporation of Namibia (“NAMCOR”) have unveiled details about their new Joint Operating Agreement (“JOA”) and its execution. The two parties focus on the Kavango Sedimentary Basin located in Northeast Namibia and what they could get from it.
The exploration undertakings
The latest agreement binds both parties in a joint move targeted towards the pursuit of a petroleum exploration program. The parties believe in the outstanding potential of the Kavango West and the Kavango East regions of Namibia.
ReconAfrica has declared its commitment to the deal, outlining that it will shoulder the commerciality’s full costs to the last coin.
It is a working relationship that has taken many turns so far. For instance, the initial stage involved the two companies signing a Petroleum Exploration Agreement. It was a deal between the two and the Government of the Republic of Namibia, and it was struck back in 2015. The deal turned out quite productive, considering that the parties in question managed to win the Petroleum Licence No. 73.
It was last Friday that they officially executed the JOA. It was an undertaking that involved NAMCOR Managing Director Immanuel Mulunga and ReconAfrica CEO Scot Evans signing the deal.
The Managing Director of NAMCOR, Immanuel Mulunga, opined, “We are delighted to have finalized the negotiations and signature of a Joint Operating Agreement (JOA) with ReconAfrica for Petroleum Exploration License No. 73. This agreement will govern the relationship between NAMCOR and ReconAfrica.”
The two parties hope to work in unity towards advancing their oil search operations in the Kavango Sedimentary Basin. They have vowed to obey the existing laws in Namibia.