Namibian Petroleum Commissioner Maggy Shino defended Reconnaissance Energy Africa's conduct in the Kavango region.
The Parliamentary Standing Committee on Natural Resources held a hearing on the company's activities, following complaints from an NGO.
Save the One Life Okavango (SOUL) petitioned the Speaker of the National Assembly Peter Katjavivi in February.
The group called for an immediate moratorium on exploration. It raised concerns about hydraulic fracturing, displacement of people, water contamination and environmental damage.
Shino, however, denied these concerns.
ReconAfrica uses conventional methods to exploit resources, she said, not hydraulic fracturing.
She also dismissed concerns about where the drilling was taking place. "We are not drilling in the Okavango Delta. It is more than 250 kilometers from the site. This information is not factual. Namibia also does not issue drilling permits in national parks," Shino said.
The drilling did not displace people. "The drilling itself and the wells have a very minimal impact of 0XD in terms of the size of land required," the commissioner said. "They don't take up a lot of space, but Namibia also has laws that provide for negotiations and compensation in the event of relocation."
Shino went on to say that Namibia's integrated resource plan aimed to use all forms of energy and that the transition would take time. "We need to use all our natural resources because we are aware of the energy deficit we are facing," she said.
The commissioner added that ReconAfrica has held more than 40 meetings with communities since obtaining its license in 2015.
The company employed over 250 Namibians and spent N$14 million ($940,000) on services.
The Ministry of Mines and Energy is reviewing the law to balance business needs with social impact, said Executive Director Simeon Negumbo.
The department does not have a social responsibility policy, he acknowledged, and therefore cannot yet compel companies to invest in communities for longer-term impact.
There are concerns on the part of local people, said committee chairman Tjekero Tweya. These stem from fears that they will not benefit directly if ReconAfrica makes commercial discoveries.
The parliamentary statement said that residents feel they "should benefit directly as stewards of the land."
Tweya also attended hearings in Rundu and Mukwe, Kavango East, in September.
ReconAfrica has drilled eight solar-powered community water wells so far and plans to build 12 more.
SOUL called for a greater emphasis on renewable energy, particularly wind and solar. The NGO has not yet responded to a request for comment on the commission's hearing.
It is not only in Namibia that ReconAfrica has come under scrutiny. A group of NGOs, including Above Ground and the Centre for International Environmental Law (CIEL), have called for an investigation of ReconAfrica's Canadian listing.
They asked the TSX Venture Exchange to investigate ReconAfrica's conduct. In particular, they raised concerns about "unreported material changes" and "material misrepresentations".
This complaint was about the company's shift from shale to conventional resources.