ReconAfrica spuds Kavango West 1X well

Executive Summary

• Reconnaissance Energy Africa Ltd. has started drilling the Kavango West 1X exploration well, which was spudded on July 31.
• The well is planned to reach a total depth of approximately 3,800 meters by the end of November 2025, targeting over 1,500 meters of Otavi carbonate reservoir section within the Damara fold belt play.
• The company reprioritized this location following results from the Naingopo well, citing it as the best opportunity to unlock the play's potential, with results expected before year-end 2025.

Key Details

• Drilling Status: Kavango West 1X well spudded on July 31.
• Well Specifications:
  • Planned Total Depth: Approximately 3,800 meters (12,500 feet).
  • Target Penetration: Over 1,500 meters of Otavi carbonate reservoir section.
  • Target Play: Damara fold belt.
  • Prospect Characteristics: Large structural fold identified on modern 2-D seismic data, extending over 22 km long by 3 km wide.
• Strategic Context:
  • Location reprioritized after Naingopo well results.
  • Company identifies over 19 prospects and four leads mapped in the Damara fold belt trend.
  • Additional 5.0 million acres captured in a recently executed memorandum of understanding in offsetting Angola.
  • Expected reporting of results before year-end 2025.
• Operational Changes:
  • Previously announced 3-D seismic program for the second half of 2025 has been moved to the 2026 operating program due to continuing drilling activities.
• Corporate Activity:
  • Company is reviewing potential investment opportunities, including acquisition of further acreage, development/producing properties, and joint venture transactions.
• Administrative/Compensation Update:
  • Granted incentive stock options for an aggregate of 6.96 million common shares.
  • Exercise Price: 60 cents per share.
  • Term: Five years, expiring July 31, 2030.
  • Vesting: Subject to provisions determined by the board of directors.
  • Insider Resale Restriction: Until November 30, 2025.

Notable Quotes

• Brian Reinsborough, President and CEO: "We are pleased to announce that we have started drilling the Kavango West 1X well... We think that the Kavango West 1X prospect represents our best opportunity in the Damara fold belt to unlock the potential of this play, and we look forward to reporting results expected before year-end 2025."
• Chris Sembritzky, Senior Vice-President, Exploration: "By utilizing our learnings from the Naingopo well, Kavango West 1X represents the best opportunity we have identified on seismic in the Damara fold belt play due to its size, hydrocarbon migration pathway and well-defined four-way closure... we believe that we have captured the best possible chance for drilling an efficient, safe and commercially successful well."