ReconAfrica looks back at 2025, ahead at 2026

Executive Summary

• Reconnaissance Energy Africa provided a year-end operational update highlighting significant hydrocarbon discoveries in Namibia, new acreage acquisitions in Angola and Gabon, and upcoming production testing plans.
• The company encountered significant hydrocarbons in the Kavango West 1X well, including ~85m of net reservoir and ~64m of net hydrocarbon pay in the Huttenberg formation, and strong gas/oil indicators in the deeper Elandshoek formation.
• Production testing for Kavango West 1X is scheduled to commence in Q1 2026, with plans to test up to eight separate reservoir intervals.

Key Details

• Kavango West 1X Drilling Results (Damara Fold Belt, Namibia):
  • Huttenberg Formation: Approximately 85 metres (280 feet) of net reservoir identified, containing 64 metres (210 feet) of net hydrocarbon pay across a gross interval of ~400 metres. Multiple limestone reservoir units were identified.
  • Elandshoek Formation: The 560 metres (1,837 feet) drilled through this section showed an average of 20% total gas, indicating a hydrocarbon-saturated section.
  • Hydrocarbon Indicators: Post-well analysis revealed 81 metres (265 feet) of hydrocarbon fluorescence in cuttings (increased from previously disclosed 61 metres). Visible oil sheens and oil bubbles were observed in mud pits. Rapid increases in gas readings after drilling connections indicated active hydrocarbon flow toward the wellbore.
  • Total Depth: Drilling reached 4,260 metres; gas readings and hydrocarbon presence remained encouraging at total depth. Drilling was halted due to operational limitations of the rig.
  • Sampling: Mud and gas samples from the Huttenberg and Elandshoek sections have been sent to the United States for analysis.
• Production Test Plans:
  • ReconAfrica and partners decided to proceed directly to production testing rather than a drill stem test due to operational challenges with the 2,000-metre open hole section.
  • Testing is expected to commence in Q1 2026 and last 4–8 weeks.
  • Up to eight separate reservoir intervals may be tested, with each test lasting 5–10 days to allow for longer flow periods and pressure buildup analysis.
  • Equipment is being sourced internationally.
• Angola Expansion:
  • Signed a Memorandum of Understanding (MOU) in April 2025 with the National Agency for Petroleum, Gas and Biofuels of Angola for joint exploration in the Etosha-Okavango basin (onshore southeastern Angola).
  • Adds 5.2 million contiguous acres to the existing 6.3 million acres in Namibia.
  • Activities include geochemical sampling of surface oil and gas seeps, expected to start in Q1 2026.
• Gabon Offshore Expansion:
  • Signed a production-sharing contract in September 2025 with the Republic of Gabon and Gabon Oil Company for the Ngulu block (shallow waters offshore Gabon).
  • ReconAfrica holds a 55% working interest; partners include Record Resources (20%), Gabon Oil (15%), and the Republic of Gabon (10% carried).
  • 3D seismic data covering prospective areas is expected near the end of December 2025, with reprocessing beginning in January 2026.
  • A third-party resource report outlining the block's potential is planned following data evaluation.
• Partnership Structure (Namibia):
  • ReconAfrica: 70% WI (Operator)
  • BW Energy: 20% WI
  • National Petroleum Corp. of Namibia: 10% carried WI

Notable Quotes

• Brian Reinsborough, President and CEO: "We have had an active and productive 2025 in which we advanced the company on multiple strategic fronts. We completed drilling our second well in the Damara Fold belt resulting in encountering of significant hydrocarbons, extended our acreage position into Angola at a low cost of entry and expanded our asset portfolio into offshore Gabon to help balance our investment risk profile."
• Nick Steinsberger, Senior Vice-President Drilling and Completions: "We are preparing to conduct a production test on Kavango West 1X, which will allow us to conduct a longer flow period and pressure buildup analysis to better calculate potential production rates and reserve estimates. Early planning suggests that we may test up to eight separate reservoir intervals of interest."