ReconAfrica increases offering to $18-million

Executive Summary

• Reconnaissance Energy Africa Ltd. has upsized its previously announced overnight marketed public offering to raise C$18 million in gross proceeds, driven by strong investor demand.
• The company entered into a Production Sharing Contract (PSC) for the Ngulu Block (Block C-7) in offshore Gabon, forming a joint venture with Record Resources Inc., Gabon Oil Company (GOC), and the Republic of Gabon, positioning ReconAfrica as the operator with a 55% working interest.
• The company provided a drilling update on the Kavango West 1X exploration well in Namibia, which has reached 2,300 meters with Total Depth (TD) expected in Q4 2025.

Key Details

• Financing Structure:

  • Gross Proceeds: C$18 million.
  • Units Sold: 30 million units.
  • Price: C$0.60 per unit.
  • Underwriter: Research Capital Corp. (lead underwriter/sole bookrunner); syndicate includes Canaccord Genuity Corp. and Haywood Securities Inc.
  • Warrant Terms: Each unit includes one common share and one common share purchase warrant. Warrants allow purchase of one share at C$0.72 exercise price, exercisable for 24 months. Company will seek TSX Venture Exchange listing for warrants.
  • Over-allotment Option: Underwriters have an option to purchase up to 15% additional units (4.5 million units) to cover overallotments, exercisable within 30 days of closing.
  • Use of Proceeds: Advancement of appraisal and exploration expenses for the Ngulu PSC, including geological/geophysical studies, 3-D seismic data reprocessing, advancement of the initial development well at the Loba complex, and general corporate purposes/working capital.
  • Strategic Partner: BW Energy Ltd. is investing alongside other investors.
  • Closing Date: Expected on or about Sept. 29, 2025.

• M&A / Ngulu Block PSC (Gabon):

  • Asset: Ngulu Block (formerly Block C-7), offshore central Gabon.
  • Size: 1,214 square kilometers in shallow water.
  • Joint Venture Partners & Interests:
    • ReconAfrica: 55% (Operator)
    • Record Resources Inc.: 20%
    • Gabon Oil Company (GOC): 15%
    • Republic of Gabon: 10% (Carried interest)
  • Commitments: Initial four-year term with option to renew for four additional years. Commitments include detailed geological/geophysical studies, 3-D seismic reprocessing, and drilling one well.
  • Strategic Rationale: Entry into a producing hydrocarbon province; diversification; near-term production potential from existing Loba discovery; access to existing infrastructure (10 km from Perenco facilities).

• Operations Update - Namibia (Kavango West 1X):

  • Status: Spudded July 31, 2025.
  • Current Depth: ~2,300 meters.
  • Activities: Intermediate logging underway.
  • Plan: Set casing at 2,300m, then drill through ~1,500 meters of Otavi reservoir zone.
  • Total Depth (TD): ~3,800 meters.
  • Timeline: Drilling on schedule to reach TD with results expected in Q4 2025.

• Ngulu Block Asset Highlights:

  • Loba Field Discovery: Drilled in 1976 by Elf-Gabon.
    • Reservoir: Batanga formation.
    • Oil Quality: 27-degree API gravity.
    • Pay: 140 meters gross (70 meters net).
    • Production Potential: ~20,000 Bbl/d (based on offset fields).
    • Location: 60 meters water depth, ~10 km from existing infrastructure.
  • Exploration Inventory: 28 mapped prospects analogous to Gulf of Mexico play types.
    • Marquee Prospects: Lepidote Deep (postsalt) and Palomite Deep (presalt).
    • Offset Fields: Range from 38 MMBbl to 250 MMBbl.
  • Seismic: Advanced reprocessing planned to unlock exploration upside and derisk prospects.

Notable Quotes

• No direct quotes from the CEO/President were included in the provided text.