Recon’s latest announcement from Nov 9, 2022, regarding the results of the Makandina 8-2 well, including predominantly gaseous hydrocarbons seen in the well, clearly reinforce the thesis that the oil found in their first two wells was not sourced from the relatively small Karoo Rift Basin in this eastern area but from the deeper Owambo basin which, as noted by Recon themselves, extends across much of northern Namibia.
This was also demonstrated by the oil shows in the pre-Karoo formations of Recon’s 6-2 well.
Recon’s own view is now, gratifyingly, aligning with our own, i.e. that the centre of the basin is to the south and west where Monitor’s blocks
lie and that this basin contains as they themselves now say: “anticlinal structures potentially hundreds of square kilometres in size, a significant portion of which could be under four-way dip closure”.
As previously noted this prospectivity is supported by the viable reservoirs proven in the Otavi carbonates in the west by the Etosha-5-1A well, which flowed 168 0bwpd on test, plus there are good candidates for seals in the system.
The proven oil source demonstrated by Recon’s drilling activity makes the investment case for Monitor Exploration (MEL) all the more compelling.