Mr. Michael Judson reports

RECORD RESOURCES RECEIVES KEY 3D-SEISMIC DATASET AND COMMENCES REPROCESSING PROJECT FOR SELECTION OF DRILLING LOCATION ON EXISTING LOBA OIL DISCOVERY AND MAPPING OF OVER 28 IDENTIFIED HIGH IMPACT MARQUEE PROSPECTS ACROSS THE NGULU BLOCK IN GABON, AFRICA

Record Resources Inc. has received from the Directorate General of Hydrocarbons of the Ministry of Petroleum and Gas of Gabon all sets of government-owned legacy 3-D seismic data. This includes the 1993 vintage Mandaros 3-D seismic data covering the eastern part of the Ngulu block and the 2001 vintage Moabi 3-D seismic data that cover the western end of the Ngulu block. In addition to seismic data, the contractor has received all existing well data and reports over the Ngulu block.

3-D seismic reprocessing project under way

Record and its strategic partner have received these legacy data sets as part of signing the Ngulu PSC, and, as a result, the partnership can move much faster in the appraisal of the Loba oil discovery and further definition of the remaining exploration potential of the Ngulu block without the need to shoot new 3-D seismic, resulting in major cost savings. The global cost of shooting circa 1,000 square kilometres of new 3-D seismic today would have been in the order of $10-million (U.S.) to $20-million (U.S.). The partnership is currently reprocessing 3-D seismic data over the key areas of the Ngulu block, including the Loba oil discovery. Upon completion, the company will select an appraisal/development location on the Loba oil discovery in the second half of 2026.

New 3-D seismic reprocessing algorithms have been developed recently by a number of geophysical firms. These algorithms provide significantly clearer imaging of the subsurface, particularly in complex geological settings involving subsalt and presalt plays, permitting a more precise mapping and definition of leads and prospects in the Ngulu block. The Ngulu contractor group has retained the services of DUG Technology's Houston office to undertake the reprocessing project, using its acoustic full wavefield inversion technology, which is at the forefront of current seismic imaging technology. The legacy 1993 vintage Mandaros 3-D seismic data have been copied and sent to DUG Technology for reprocessing, with the project expected to last for three more months. The Mandaros data cover the eastern end of the block and include the Loba oil discovery and most of the marquee prospects in shallow water.

Ngulu block: large scale with existing oil field development and inventory of high-impact prospects provides significant upside

The Ngulu block, which covers 1,214 square kilometres and is equivalent to 54 Gulf of Mexico blocks, is in shallow water offshore central Gabon. This strategic block is located on trend to several sizable producing oil fields. The key aspects of the Ngulu block include the Loba oil field discovery and over 28 seismically identified prospects in the presalt Gamba/Dentale and postsalt plays. The previous operator identified these prospects based on reprocessed 3-D seismic data, but technology has evolved for the better since 2017. Its marquee prospects on the block include Lepidote Deep (postsalt play), the Palomite complex including Deep (presalt play) and Shallow (postsalt) prospects, and the Pompano complex with both postsalt and subsalt prospects.

Following 3-D seismic reprocessing by DUG Technology under way, the Ngulu contractor group plans to undertake an exhaustive remapping and both confirmation of the existing leads/prospects and identification of additional plays and prospects. Record Resources, in conjunction with its joint venture partner, will also conduct in 2026 an independent third party resource report to outline the size and scope of the opportunities across the block, including the contingent resources at the Loba oil discovery and prospective resources in its marquee prospects.

Loba oil complex: existing oil 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-metre 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 the Barbier field existing infrastructure, operated by international oil company Perenco. Management believes that low-cost options are available for the development of the Loba complex, which include the initial Loba oil discovery and follow-on appraisal targets at Loba Deep and Loba East. The Loba field complex has potential production of approximately 20,000 barrels per day based on offset fields. Wells in analogous fields have shown initial production rates up to 7,600 bbl/d of oil with a single completion. These analogous wells are located within 40 kilometres from the Loba oil complex and are in the same targeted reservoir.

Drilling of first Loba oil appraisal well -- financed by financial carry by operating partner

Under the deal signed with its strategic partner and operator of the Ngulu block, Record Resources is fully carried financially through the first phase of exploration/appraisal expenditures including all seismic reprocessing activities and the drilling of the first well on the block to total depth. As such, the company will not be cash-called until after the first well is drilled to its total depth.

High-impact exploration prospect inventory

Approximately 28 prospects have been delineated on vintage 3-D seismic data by prior operators, with estimated sizes consistent with offsetting producing fields ranging from 35 million barrels of oil equivalent to 250 barrels of oil equivalent per prospect. The application of DUG's MP-FWI technology will allow the company to more precisely identify and map prospects to develop a drilling inventory of low-risk high-materiality exploration targets from the enhanced data set. Marquee prospects previously identified are described below.

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 of stacked sands. An initial Lepidote 1 well was drilled in the 1970s on sparse 2-D seismic data with the well encountering strong oil shows but was not drilled deep enough to penetrate the deeper prospective intervals. The Lepidote Deep prospect benefits from its proximity to established infrastructure with available capacity, supporting a potential cost-effective development project.

Palomite complex

The Palomite complex provides exposure to test multiple prospective horizons in the post, subsalt and presalt with a single well. The Palomite postsalt cluster targets stacked reservoirs in the Batanga, Anguille and Cape Lopez reservoirs while the Palomite presalt cluster targets the Gamba and Dentale reservoirs in an optimal position from a reservoir and source rock maturity and charge standpoint. The old 3-D seismic data set provided inadequate imaging at the presalt level, however, the application of DUG's MP-FWI technology is expected to significantly enhance imaging and materially improve structural interpretation.

Pompano Dentex complex

The Pompano Dentex complex has multiple stacked channel systems within three main targets, Batanga, Lower Anguille and Cap Lopez. Similar to the above Palomite complex, the application of DUG's MP-FWI technology is expected to significantly enhance imaging and materially improve structural understanding and interpretation.

"We are finally on our way to realizing the full potential of our Ngulu block. The operator's selection of DUG Technology as our reprocessing service provider for the Mandaros 3-D seismic demonstrates their acute knowledge of the industry and the winning formula to extract maximum value from these legacy 3-D seismic data sets. We are convinced that these reprocessed data will provide a far superior image of the Loba oil field complex discovery, allowing rapid appraisal and development to be achieved with greatly reduced risk, and finally revealing the full prospectivity and upside of the Ngulu block," said Alain Mizelle, Record's president and chief operating officer.

"Record is on the cusp of unlocking transformational shareholder value. The months that lie ahead will unveil just that," added Michael Judson, Record's chairman and chief executive officer.

We seek Safe Harbor.