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Reconnaissance Energy Africa Starts Production Testing at Kavango West 1X Discovery

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Reconnaissance Energy Africa (RECO.V) along with partners NAMCOR and BW Energy, have started production testing operations at Kavango West 1X, it said on Monday.

A total of six optimized intervals, encompassing 420 meters of hydrocarbon bearing section is to be isolated and tested across the Huttenburg and Elandshoek formations, it said. The KW1X well would be temporarily abandoned and available as a future producing well, following a successful production test.

"While permitting requirements for the transportation of the downhole testing equipment from North America to the Kavango West 1X drill site experienced minor delays, ReconAfrica continues to target disclosure of production test results to all stakeholders by late July," said the company in a statement. "ReconAfrica continues to take the steps required to advance appraisal drilling locations on the Kavango discovery following the completion of the production test at KW1X."

Preparations for the appraisal well are proceeding with specific permitting applications and site preparations underway for the Kavango West 2A appraisal well. The company plans to spud this well before the end of the third quarter of this year pending final permitting and regulatory approvals.

Shares of the company closed down 8.3% to $1.11 on Friday on the TSX Venture Exchange.

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