Record, Recon enter JV, production-sharing contract

Mr. Michael Judson reports RECORD RESOURCES FORMS STRATEGIC JOINT VENTURE WITH RECONAFRICA TO ENTER GABON, AFRICA, ACQUIRING OIL DEVELOPMENT AND EXPLORATION ASSETS AND SIGNS PRODUCTION SHARING CONTRACT On Sept. 8, 2025, Record Resources Inc. has formed a strategic joint venture with Reconnaissance Energy Africa Ltd., and the consortium entered into a production-sharing contract today with the Gabonese Republic and Gabon Oil Company, the national oil and gas 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, Record Resources and Recon have formed a joint venture whereby each party will acquire a working interest of 20 per cent and 55 per cent, respectively. Recon is designated as the operator under the PSC, and fully carries and finances Record Resources through the commitments on the Ngulu block for the initial four-year concession period, including the drilling of a well to total depth. The remaining working interests are held by GOC with a 15-per-cent working interest and the Republic of Gabon with a 10-per-cent working interest (carried). Gabon transaction and asset highlights: Acquisition positions Record Resources as a significant West Africa exploration and production company; Fully carries Record Resources through the commitments on the Ngulu block through the initial four-year concession period, including the drilling of a well to TD; Diversified portfolio with low-risk appraisal, development and exploration assets; Near-term oil production potential could provide cash flow to finance 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 derisking prospects; PSC agreement, which covers 1,214 square kilometres and is roughly equivalent to 54 Gulf of Mexico blocks, is located in shallow offshore water in central Gabon; Ngulu is located on trend and offset to a number of sizable producing fields, which range in size from 38 million barrels up to 250 MMbbl; Existing oil discovery, the Loba field, was drilled in 1976 with 140 metres gross pay (70 metres net pay) and provides for low-risk appraisal and development opportunities and near-term production; Loba field complex has potential production of approximately 20,000 bbl per day based on offset fields; Significant exploration upside from an inventory of 28 mapped prospects (Lepidote Deep, Pompano Dentex complex and the Palomite complex) that are analogous to play types found in the Gulf of Mexico; Seismic reprocessing project to be undertaken to enhance imaging of prospects and reduce drilling risk; The consortium has committed during the initial four-year term to execute detailed geological and geophysical studies, advance 3-D seismic reprocessing on an existing database and drill one well on the block. "We are fully funded through the first phase of execution on a large oil and gas asset base with an existing oil discovery (near existing infrastructure), significant development upside and a large inventory of high-impact exploration plays in a proven oil-producing basin," said Michael Judson, Record's chairman and chief executive officer. "This opportunity in Gabon was identified by Record Resources who then deemed a strategic joint venture partnership with ReconAfrica was the best way forward to unlock shareholder value on this asset base. ReconAfrica is a highly experienced technical team and operator in Africa, and the Record team looks forward to an excellent partnership." Strategic rationale: pathway to a full cycle, offshore exploration and production company This transaction places Record Resources 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. Record Resources will be fully carried through the first phase of development and exploration expenditures, including the drilling of the first well on the block, for a large concession 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 provide 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 positions Record Resources in becoming an offshore West Africa exploration and production company. 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 financing 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 square kilometres and is roughly equivalent to 54 Gulf of Mexico blocks, in shallow-water offshore central Gabon. Ngulu block is located on trend and offset to several sizable producing fields, which range in size from 38 MMbbl up to 250 MMbbl. The consortium plans to apply state-of-the-art seismic reprocessing to the existing seismic data set 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 presalt Gamba/Dentale and postsalt plays. Marquee prospects on the block include Lepidote Deep (postsalt play) and the Palomite Deep (presalt play). All the prospects are similar to Gulf of Mexico play styles, where several members of Recon's management team have made numerous important discoveries, including 18 discoveries in the Gulf of Mexico made with a cumulative 2.4 billion barrels of oil equivalent. 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 (27-degree 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 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 approximately 20,000 bbl/d based on offset fields. These analogous fields are located within 30 to 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 35 to 250 MMbbl. The company expects to immediately commence a state-of-the-art seismic reprocessing project to clearly identify prospects and develop a drilling inventory of lower-risk exploration targets from the enhanced data set. The consortium will also initiate a third party resource assessment using the newly enhanced, reprocessed seismic data. Lepidote Deep-Azile channel complex The Lepidote Deep prospect (postsalt) 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 1970s on sparse 2-D 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 presalt level; however, the application of modern prestack depth migration 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 presalt with a single well. The Palomite postsalt cluster targets stacked reservoirs in the Batanga, Anguilee and Cape Lopez zones, while the Palomite presalt cluster targets the Gamba and Dentale reservoirs. The current seismic provides inadequate imaging at the presalt level; however, the application of modern PSDM is expected to significantly enhance imaging and materially improve structural interpretation. Production-sharing contract The PSC grants Record Resources a 20-per-cent working interest on Ngulu over the initial four-year term, with the option to renew for an additional four years. The remaining interests are allocated to Recon with 55 per cent as the operator, GOC with 15 per cent and the Republic of Gabon with a 10-per-cent carried interest. GOC has the option to enter the joint venture and own a 15-per-cent interest of the asset and any future production based on market terms. Under the terms of the PSC, the consortium has committed during the initial four-year term to execute detailed geological and geophysical studies, advance 3-D 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 bbl/d from its reserves of approximately two 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. Corporate presentation An updated corporate presentation can be accessed on Record Resources' website. The corporate presentation contains detailed information related to the transaction. We seek Safe Harbor.