Record, Recon enter JV, production-sharing contract

Executive Summary

• Record Resources Inc. entered a strategic joint venture with Reconnaissance Energy Africa Ltd., forming a consortium that signed a production‑sharing contract (PSC) for Gabon offshore block C‑7 (Ngulu).
• The JV gives Record a 20 % working interest, while Recon holds 55 % and operates the project; the remaining interests belong to the Gabon Oil Company (15 %) and the Republic of Gabon (10 %).
• The PSC covers 1,214 km², includes an existing oil discovery (Loba field) with estimated production of ~20,000 bbl/d, and provides for seismic re‑processing and drilling of one well during a four‑year initial term, all fully carried by Recon.

Key Details

• Joint Venture Structure: Record Resources – 20 % working interest; Reconnaissance Energy Africa – 55 % (operator); GOC – 15 %; Republic of Gabon – 10 % (carried).
• Financial Commitment: Recon fully carries and finances Record’s share for the initial four‑year concession period, including drilling a well to total depth. No cash outlay required from Record at this stage.
• Asset Overview – Ngulu Block:
• Location: Shallow offshore central Gabon, 1,214 km² (≈54 Gulf of Mexico blocks).
• Existing discovery: Loba field (1976) – 140 m gross pay (70 m net), shallow water (~60 m depth), ~10 km from existing infrastructure.
• Estimated production potential: ≈20,000 bbl/d based on offset fields.
• Exploration Upside: 28 mapped prospects (e.g., Lepidote Deep, Pompano Dentex, Palomite complex) with analogues to Gulf of Mexico plays; prospective sizes 35–250 MMbbl.
• Commitments During Initial Term:
• Detailed geological and geophysical studies.
• 3‑D seismic re‑processing of existing data set.
• Drilling of one well on the block.
• Strategic Rationale: Provides Record Resources with a low‑risk, capital‑efficient entry into West African offshore production, diversifying its portfolio and creating near‑term cash flow potential to fund further exploration growth.
• Transaction Terms: Arm’s‑length deal with an independent third party; no finders’ fees incurred.

Notable Quotes

“We are fully funded through the first phase of execution on a large oil and gas asset base with an existing oil discovery… ReconAfrica is a highly experienced technical team and operator in Africa, and the Record team looks forward to an excellent partnership.” – Michael Judson, Chairman & CEO, Record Resources Inc.