Reconnaissance Energy Africa Ltd. (the “Company”, “ReconAfrica” or “Recon”) is pleased to announce that on September 8, 2025, it has entered into a production sharing contract (the “PSC”) and a joint venture agreement, led by Recon along with Record Resources Inc. (“Record”) (TSXV: REC), the Republic of Gabon and its national oil and gas company, Gabon Oil Company (“GOC”). The PSC is for the exploration, appraisal, development and production of oil and gas on Gabon offshore Block C-7, renamed Ngulu (“Ngulu”). Under the terms of the joint venture, Recon 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).
Transaction and Asset Highlights
Acquisition positions Recon as an offshore West Africa operator?.
Diversified portfolio with low risk appraisal, development, and exploration assets?.
Near-term oil production potential could provide cashflow to fund exploration growth?.
Capital-efficient entry terms include a large concession with minimal work phased over a four-year commitment.
Advanced seismic reprocessing to unlock exploration upside while de-risking prospects.?
PSC agreement covers 1,214 Km2 in shallow water offshore central Gabon.
Ngulu is located on trend and offset to a number of sizeable producing fields, which range in size from 38 MMBbls up to 250 MMBbls.
Existing oil discovery, the Loba field, was drilled in 1976 with 140 metres gross pay (70 metres net pay) provides for low-risk appraisal and development opportunities and near-term production. The Loba field complex has potential production of ~20,000 Bbls/d in line with offset fields.(1)(2)(3)
Significant exploration upside from an inventory of 28 mapped prospects that are analogous to play types found in the Gulf of Mexico.
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.
Brian Reinsborough, President and CEO commented: “We are very pleased to be able to diversify our portfolio into an existing oil producing basin in the Republic of Gabon, complementing our exploration programs in Namibia and Angola. Gabon is sub-Saharan Africa's fourth largest producer and exporter of crude oil and is a jurisdiction that has attractive exploration upside. This strategic entry allows the Company to deploy capital to drilling options, including appraisal and development opportunities, with line of sight to near-term production and cash flow.
The exploration inventory in Gabon contains play types analogous to the Gulf of Mexico deep water plays. This is an area of expertise for both me and our team, which has extensive experience and success in finding many significant fields. We plan to deploy Gulf of Mexico style exploration using state-of-the-art reprocessing to reduce risk and increase our chance of success on exploration drilling in this underexplored region of Gabon.
This transaction, in addition to our high potential exploration program in Namibia, including the current drilling of the Kavango West 1X well, positions Recon shareholders with significant near-term growth potential.”
Strategic Rationale: Pathway to a Full-Cycle, Offshore E&P Company
This transaction places Recon 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 program 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. The block also adds an extensive inventory of high-impact exploration projects for future drilling, in addition to exposure to a large pipeline of brownfield opportunities across 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 the seismic data could unlock a significant exploration inventory.
Ngulu Overview: Gulf of Mexico Style Exploration
The PSC agreement, which covers 1,214 Km2 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 several members of the current Recon management team have made numerous important discoveries, including 18 discoveries in the Gulf of Mexico made with 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 and Anguille reservoirs. The LOM-1 well discovered a shallow oil zone (27oAPI 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 Complex, which includes the initial Loba oil discovery and follow-on appraisal targets at Loba Deep and Loba East. Loba field complex has potential production of ~20,000 Bbls/d based on offset fields.(1)(2)(3) These analogous fields are located within 30-60 kilometres from the Loba Oil Complex and are in the same targeted reservoir.
1. Grondin Field. AAPG Memoir Giant Oil and Gas Fields of the Decade: 1968-1978 / Geology of Grondin Field. Peak field production report at Grondin ~25,000 Bbls/d. We are unable to confirm if the reports were prepared by a qualified reserves evaluator or auditor or in accordance with the COGE handbook.
2. Baudroie field, Ngumu Moabi Le Comite De Consultation Technique report 17, May 2006. Initial production 1972. Peak field production reported at ~42,000 Bbls/d. We are unable to confirm if the reports were prepared by a qualified reserves evaluator or auditor or in accordance with the COGE handbook.
3. Torpille field, operator Societe des Petroles d'Africa Equatoriale Francaise (Total Energies), 1972 report. Peak field production reported at ~25,000 Bbls/d. We are unable to confirm if the reports were prepared by a qualified reserves evaluator or auditor or in accordance with the COGE handbook.
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 35 – 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.
Lepidote Deep - Azile Channel Complex
The Lepidote Deep prospect (Post-salt) has multiple stacked turbidite channels that can be tested from a single well targeting an estimated 800 metres of gross interval stacked sands. An initial Lepidote 1 well was drilled in the 1970’s on sparse 2D data with the well encountering strong oil shows but did not drill deep enough to penetrate the deeper prospective intervals. Similar to the Loba Oil Complex, the Lepidote Deep prospect benefits from its proximity to established infrastructure with available capacity, supporting a potential cost-efficient development pathway.
Pompano Dentex Complex
The Pompano Dentex Complex has multiple stacked channel systems within three main targets, Batanga, Lower Anguille and Cap Lopez. The current seismic provides low-quality imaging at the Pre-salt level, however, the application of modern Pre-Stack Depth Migration (“PSDM”) is expected to significantly enhance imaging and materially improve structural interpretation.
Palomite Complex
The Palomite complex provides exposure to test multiple prospective horizons in the Post-, Sub- and Pre-salt with a single well. The Palomite Post-salt Cluster targets stacked reservoirs in the Batanga, Anguilee and Cape Lopez zones, while the Palomite Pre-salt Cluster targets the Gamba and Dentale reservoirs. The current seismic provides inadequate imaging at the Pre-salt level, however, the application of modern PSDM is expected to significantly enhance imaging and materially improve structural interpretation.
Production Sharing Contract
The PSC grants Recon a 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 as 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.
Research Capital Corporation was acting as an advisor to Recon with respect to the transaction