Reconnaissance Energy Africa has pushed back plans to drill in Namibia until the second half of this year.
The rig had been expected to be at its first drilling location in the second half of June. ReconAfrica is planning to drill three wells in the country in this initial phase of work.
The drilling permit from the Namibian Ministry of Environment and Tourism covers the entire PEL 73 area, allowing the drilling of a number of wells in the Kavango Basin until August 2022.
The Vancouver-based company listed on the TSX Venture Exchange, via a reverse takeover, in August 2019. It raised cash at the time, raising more at the end of the year.
The second raising, of C$3.4 million ($2.4mn) was to cover the acquisition, upgrade and transport of a Crown 750 drilling rig. Work is being carried out on this to make it ready for work in the Kalahari Desert.
ReconAfrica blamed travel bans and logistical restrictions arising in response to the coronavirus for pushing back drilling plans. Total costs for the rig, including acquisition and mobilisation, have been forecast at $3mn.
PEL 73 covers 6.3mn acres (25,500 square km) in northeast Namibia, with ReconAfrica holding a 90% working interest.
The licence is currently held under a first renewal phase, which runs until January 2022, with ReconAfrica committed to drilling at least two wells during this period. It is also required to acquire 250 km of 2D seismic. Spending during this first renewal period is a total of $10mn.
A second renewal phase can be applied for, following the first. In addition, each renewal period has the option of a one-year extension.