Record Resources Forms Strategic Joint Venture with ReconAfrica to Enter Gabon, Africa, Acquiring Oil Development and Exploration Assets and Signs 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 with the Gabonese Republic and Gabon Oil Company for offshore Block C‑7 (Ngulu).
• Under the PSC, Record will hold a 20 % working interest (carried by Recon during the initial four‑year term) while Recon receives a 55 % operator interest; GOC holds 15 % and the Republic of Gabon 10 % (carried).
• The Ngulu block covers ~1,214 km², contains the existing Loba oil discovery with an estimated production potential of ~20,000 bbl/d, and hosts ~28 mapped prospects ranging from 35‑250 MMbbl, providing near‑term cash‑flow and long‑term exploration upside.

Key Details

• Joint Venture Structure:
• Record Resources – 20 % working interest (fully carried for the first four years).
• Reconnaissance Energy Africa Ltd. – 55 % working interest; designated operator, fully funds Record’s commitments during the initial term.
• Gabon Oil Company (GOC) – 15 % working interest.

• Republic of Gabon – 10 % carried interest.

• PSC Terms:

• Initial concession period: 4 years, with an option to renew for a further four years.

• Obligations during the first term: detailed geological & geophysical studies, 3‑D seismic re‑processing of existing data, and drilling of one well to total depth (TD).

• Asset Highlights:

• Ngulu block size: 1,214 km² (~54 Gulf of Mexico blocks), shallow offshore water.
• Existing Loba field (discovered 1976) – 140 m gross pay (70 m net), ~20,000 bbl/d potential based on offset fields.
• Proximity to infrastructure: ~10 km from existing facilities operated by Perenco, enabling low‑cost tie‑back.

• Exploration inventory: 28 prospects (e.g., Lepidote Deep, Pompano Dentex Complex, Palomite Complex) with analogues ranging 35‑250 MMbbl.

• Strategic Rationale:

• Positions Record as a West African offshore E&P company with both near‑term production and long‑term growth potential.
• Fully carried during the first phase reduces cash‑out requirement, preserving liquidity for future expansion.

• Seismic re‑processing to de‑risk prospects and generate a drilling inventory.

• Financial Impact:

• No immediate capital outlay required from Record due to Recon’s carry arrangement; anticipated cash‑flow from Loba field could fund subsequent exploration/expenditure.

• Corporate Actions:

• Memorandum of Understanding signed on Aug 4 2025; Joint Operating Agreement to be executed in the coming months.

• Clarification that a previously referenced South African partner will no longer be engaged, as Record is now carried by Recon for the Ngulu block.

• Forward‑Looking Statements:

• The release contains extensive forward‑looking statements regarding production timelines, exploration results, financing availability, and regulatory approvals.

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.