.…Provides a Drilling Update on the Kavango West 1X Exploration Well
Reconnaissance Energy Africa has disclosed that, in connection with its previously announced overnight marketed public offering of units of the Company, it has increased the size of the offering due to strong investor demand and it has entered into an underwriting agreement with Research Capital Corporation as the lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters, including Canaccord Genuity Corp. and Haywood Securities, pursuant to which the Underwriters have agreed to purchase 30,000,000 Units at a price of C$0.60 per Unit for aggregate gross proceeds of C$18,000,000. ReconAfrica’s strategic partner, BW Energy Limited, will be investing alongside other investors in the Offering.
The net proceeds from the Offering will be used for activities related to the advancement of appraisal and exploration expenses related to the Ngulu Production Sharing Contract. This will include acquiring geological and geophysical studies, reprocessing of the 3D seismic data, the advancement of the initial development well in the existing proven oil discovery at the Loba Complex and for general corporate purposes and working capital.
Namibia – KW1X Drilling Update
The Kavango West 1X exploration well, which spud on July 31, 2025, has drilled to a depth of ~2,300 metres. Intermediate logging is currently underway. Once casing has been set at this depth, the Company plans to drill through ~1,500 metres of Otavi reservoir zone before reaching total depth (“TD”) of ~3,800 metres. Drilling remains on schedule to reach TD with well results expected in Q4 2025.
Gabon – Ngulu Update
As previously announced on September 9, 2025, ReconAfrica has entered into a PSC and will form a joint venture led by ReconAfrica along with Record Resources, the Republic of Gabon and its national oil and gas company, Gabon Oil Company. The PSC is for the exploration, appraisal, development and production of oil and gas on Gabon offshore Block C-7, renamed Ngulu. Under the terms of the joint venture, ReconAfrica will be the designated operator, with a 55% working interest, Record with a 20% working interest, the Gabon Oil Company with a 15% working interest and the Republic of Gabon with a 10% working interest (carried).
Strategic Rationale: Pathway to a Full-Cycle E&P Company
The transaction places ReconAfrica into a producing hydrocarbon province with the opportunity to build a long-term and sustainable high-growth platform. Collectively, this transaction adds appraisal, development, and exploration potential to the Company’s portfolio
Entry terms are attractive for a large concession secured at a low-entry cost with a minimal work commitment over the initial four-year period. Ngulu contains near-term oil production potential with the development of the Loba field and access to existing infrastructure within 10 kilometres, which provides a low-cost production tie back option. The block also adds an extensive inventory of high-impact exploration projects for future drilling, in addition to exposure to future brownfield opportunities in Gabon.
The transaction advances ReconAfrica’s strategy of becoming an offshore West Africa exploration and production company with an expanded footprint and a de-risked diversified corporate profile. Anchored by an existing oil discovery, the acquired asset base provides a pathway to potential low-cost development and near-term production, underpinning cash flow growth and funding optionality. Pursuing development close to existing infrastructure reduces costs and drives robust returns. In addition, reprocessing seismic data could unlock a significant exploration inventory.
Ngulu Overview: Gulf of Mexico Style Exploration
The PSC agreement, which covers 1,214 Km 2 and is roughly equivalent to 54 Gulf of Mexico blocks, is in shallow water offshore central Gabon. Ngulu block is located on trend and offset to several sizeable producing fields, which range in size from 38 MMBbl up to 250 MMBbl. The Company plans to apply state-of-the-art seismic reprocessing to the existing seismic dataset to identify additional prospects, as well as conduct an independent third-party resource report to outline the size and scope of the opportunities across the block.
The key aspects of the Ngulu Block include the Loba oil field discovery made by Elf-Gabon in 1976 and over 28 seismically identified prospects in the Pre-salt Gamba / Dentale and Post-salt plays. Marquee prospects on the block include Lepidote Deep (Post-salt play) and the Palomite Deep (Pre-salt play). All the prospects are similar to Gulf of Mexico play styles where members of the current ReconAfrica management team have made numerous important discoveries, including 18 discoveries in the Gulf of Mexico representing a cumulative 2.4 billion boe.
Loba Oil Complex: Existing Development Offering Near-Term Production Potential
The Loba Field was discovered by Elf-Gabon’s LOM-1 well, which targeted the Batanga reservoir. The LOM-1 well discovered a shallow oil zone (27 o API gravity oil) in the Batanga Formation with 140 metres of gross oil column (70 metres net pay) and is similar to nearby producing fields Barbier, Barbier Southwest and Ablette. The Loba oil discovery was made in 60 metres of water depth and is approximately 10 kilometres from existing infrastructure, operated by international oil company Perenco. Management believes that low-cost options are available for the development of the Loba Complx and follow-on appraisal targets at Loba Deep and Loba East. Loba field complex has production potential of ~20,000 Bbls/d based on offset fields.These analogous fields are located within 30-60 kilometres from the Loba Oil Complex and are in the same targeted reservoir.
High Impact Exploration Inventory
Approximately 28 prospects have been delineated on vintage seismic by prior operators, with estimated sizes consistent with offsetting producing fields ranging from 38-250 MMBbl. The Company expects to immediately commence a state-of-the-art seismic re-processing project to clearly identify prospects and develop a drilling inventory of lower-risk exploration targets from the enhanced dataset. The Company will also initiate a third-party resource assessment using the newly enhanced, reprocessed seismic data.
Production Sharing Contract
The PSC grants ReconAfrica 55% working interest and operatorship in the Ngulu contract area for an initial four-year term, with the option to renew for an additional four years. The remaining interests are allocated to Record with 20%, GOC with 15% and the Republic of Gabon with a 10% carried interest. Under the terms of the PSC, the Company has committed during the initial four-year term to execute detailed geological and geophysical studies, advance 3D seismic reprocessing on an existing database and drill one well on the block.
The transaction was at arm’s length with an independent third party, and no finders’ fees were incurred.
Overview of Oil and Gas in Gabon
The oil and gas sector in Gabon remains a cornerstone of its economy. Gabon is one of Africa’s leading oil producers, underpinning the country’s fiscal stability and external trade.
The Government of Gabon has expressed its commitment to creating a regulatory environment that attracts investment and encourages the full development of the country’s plentiful natural resources. This is a means of creating wealth for the country and its people.
Gabon currently produces over 220,000 Bbls/d from its reserves of approximately 2 billion barrels of proven oil reserves and has significant potential for natural gas. There are numerous major international operators in Gabon, including but not limited to Perenco, BW Energy, Total Energies, Maurel & Prom, Sinopec, VAALCO Energy and Panoro Energy.
