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ReconAfrica Announces the Acquisition of a Modern Drilling Rig to Execute the Company's Kavango Basin, Namibia Drilling Program
ReconAfrica Announces the Acquisition of a Modern Drilling Rig to Execute the Company's Ka...
About this update from Reconnaissance Energy Africa Ltd.
[{"type":"text","content":"\n\n\n\nReconAfrica Announces the Acquisition of a Modern Drilling Rig to Execute the Company's Kavango Basin, Namibia Drilling Program\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, Feb. 4, 2020\n\n\n\n/NOT FOR DISSEMINATION OR DISTRIBUTION IN OR INTO THE UNITED STATES OF AMERICA OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS, ANY STATES OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA./\n VANCOUVER, Feb. 4, 2020 /CNW/ - Reconnaissance Energy Africa Ltd. (the \"Company\" or \"ReconAfrica\") (TSX-V: RECO) (OTC: LGDOF) (Frankfurt: 0XD) is pleased to announce it has entered into a binding Asset Purchase Agreement with Henderson Rigs (Houston) for the acquisition of a Crown 750 drilling rig. \n\n \n \n\n \nThe initial cost of the rig is US$1.8 million of which the Company has provided Henderson Rigs with a non-refundable deposit of US$450,000 with the balance of US$1.35 million payable on or before February 10, 2020. Shortly thereafter, Henderson Rigs will outfit the Crown 750 with a best-in-class top drive system (for faster drilling rates) and ancillary equipment to acclimate the rig for drilling in the Kalahari Desert. These incremental improvement costs will be approximately US$1.2 million. Therefore, all-in costs when the rig is ready to transport will be approximately US$3 million. \nThe Crown 750 was US manufactured and never been used. The rig is 1000 Horsepower equipped with two CAT 540 Horsepower Diesel engines, combined with a 440,000 pound hook load. Consequently the rig is rated to drill 12,000 vertical feet. Further details and specifications of the Crown 750 are posted on the Company's website, www.ReconAfrica.com.\nAs a result of comprehensive discussions with international drilling contractors, management concluded the acquisition of a company-owned rig is approximately 45% of the cost of hiring an international drilling contractor for its Namibian project. Further, by acquiring a rig located in Houston, there are significant time and cost benefits as the rig will be ...