Initial results at the Naingopo well drilled by ReconAfrica, the Canadian company listed on the Toronto Stock Exchange, have provided encouraging signs for oil and gas exploration in the Owambo Basin, even though this well may not be commercially viable. The discovery of a 50-meter reservoir with indications of oil in the Otavi formation is a significant step forward.
Monitor, along with its partners 88E, Legend, and Namcor, is focused on PEL 93, a central block in the basin with access to a substantial hydrocarbon kitchen. Recon’s exploration area, located on the eastern edge, faces different geological challenges.
One of the key technical findings from the Naingopo well is that while a large structure exists at the shallower Mulden formation, due to seismic uncertainties such as depth conversion the deeper Otavi did not have a clear trap to hold and accumulate oil. This means oil generated in the deeper source rocks did not accumulate in the Otavi reservoir and, without a structure to focus migration, had no reason to move upwards into the shallower Mulden layers.
Source: Slide 15 from ReconAfrica “Exploration and Developing the Damara fold belt and rift basin assets onshore Namibia January 2025”: Link to source
However, the next planned well by ReconAfrica at Prospect I looks much more promising. In this location, all the key horizons—including the oil source and potential reservoirs in both the Otavi and Mulden formationsl—appear to be within structure, creating a much better possibility for trapping oil. The fact that Naingopo confirmed oil presence in Otavi means the risk is lower for future wells, including those in Monitor’s PEL 93 area.
Source: Slide 13 from ReconAfrica “Exploration and Developing the Damara fold belt and rift basin assets onshore Namibia January 2025”: Link to source
Additionally, some challenges seen at Naingopo—such as rock formations that may have become cemented due to the igneous complex beneath Recon’s acreage in the east of the Basin—are expected to be less of an issue as drilling moves westward, closer to Monitor’s area. If Prospect I proves successful, it could also boost confidence in a very similar structure in PEL93, Lead 9, which has even greater potential at multiple rock levels.
