Is This The Next Great Oil Frontier?

But there's also something onshore that has good potential.

Shale, and a basin that's similar in size to the Eagle Ford basin in Texas.

Welcome to the Kavango Basin.

Namibia's Kavango Basin is part of the Karoo SuperGroup geology, and it's also considered to have the same depositional environment as Shell's Whitehill Permian shale play in South Africa.

Kavango is a 6.3-million-acre basin that potentially holds undeveloped shale and conventional plays. The entire basin is owned by a junior company called Reconnaissance Energy Africa (RECO.V)(LGDOF) that recently received a 90% interest in the Petroleum Exploration Permit for the Kavango basin. The remaining 10% is owned by the Namibian state petroleum company.

When Reconnaissance Energy Africa took aeromagnetic data from the basin to the go-to geophysical interpreter Bill Cathey, according to Reconnaissance, Cathey said the data showed up to a 30,000-foot sedimentary basin.

The exploration permit is for 25,000 square kilometers (6.3 million acres). Usually, many companies hold the rights to such a large area whereas the Kavango is held by one company, Reconnaissance Energy Africa.

The reason for Reconnaissance Energy Africa to take a chance on this is the fact that Kavango likely holds similar geology, deposited by the same Permian seaway, as Shell's massive Permian shale play in South Africa, one of the top 10 shale plays in the world.

Recon is targeting the same Permian shales at the lower portion of the Karoo Supergroup.

So far, Recon's interpretation suggests that Kavango could be a big shale play in the Karoo Supergroup of rocks.

When it comes to exploration, Africa is one of the final frontiers for oil investors. And if it's a junior explorer who makes a discovery and ends up sitting on a viable shale play, that becomes leverage for investors.

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