Mr. Brian Reinsborough reports

RECONAFRICA ANNOUNCES AN OPERATIONS UPDATE, FILING OF QUARTERLY FINANCIAL REPORTS AND FIRST SUSTAINABILITY REPORT

Reconnaissance Energy Africa Ltd. has provided an operational update. The company has also filed its financial results for the quarter ended June 30, 2024, and released its first sustainability report.

Highlights:

• Spudded the Naingopo exploration well, which is currently drilling at a depth past 2,400 metres, or 7,875 feet. All primary objectives are below the current drilling depth.
• Entered into a definitive farm-down agreement with BW Energy Ltd. for the sale of a 20-per-cent working interest in petroleum exploration licence 73 (PEL 73), northeastern Namibia. Under the terms of the agreement, BW Energy made a $22-million strategic equity investment in the company to support a multiwell exploration program, and additional contingent payments of $171-million, based on meeting certain development, production and cash flow milestones.
• Raised gross proceeds of $38.8-million via an underwritten public offering in July, 2024.
• Raised gross proceeds of $17.5-million via a bought deal public offering in April, 2024.
• Reduced general and administration costs to $3.2-million, from $4.2-million, for the three months ended June 30, 2024, compared with June 30, 2023.
• Increased governance structure at the board of directors level, adding Diana McQueen, ECA, ICDD, as chair of the board of directors, and appointing D. Jeffrey Harder, FCPA, FCA, FCBV, ICDD, as a new independent director and chair of the audit committee.
• The company's first sustainability report has been completed and will be available on the company's website next week.

Brian Reinsborough, president and chief executive officer of the company, stated: "Over the past few months, we have improved the company's balance sheet, which enables us to execute our planned multiwell exploration drilling campaign through the completion of two equity financings and our strategic joint venture partnership with BW Energy. Through these transactions, the company has maximized capital up front, which allows flexibility to execute our program and positions us with significant capital available for appraisal, evaluation and development activities. We continue to deliver on our strategic objectives, including reducing our cost structure, where we are seeing the benefits of the strategic repositioning of the company over the past year with nearly $1-million savings on G&A costs in Q1 2024 compared to the prior year. Operationally, things remain on track, with the Naingopo exploration well drilling on time and on budget. The seismic velocities are running faster than modelled, hence reservoirs are coming in deeper than predicted, with all primary reservoir targets below the current drilling depth. We continue to progress the road construction work ahead of getting the well pad ready for the Kambundu (prospect P) exploration well, which is targeting to start drilling in the fourth quarter. Finally, I am proud to announce that we have completed our first sustainability report, which will be published on our website next week. This report reflects our commitment and efforts as a company to ensure that our exploration activities are balanced with sustainable management practices and stakeholder engagement under our environmental, social and governance programs."

Exploration activities

The Naingopo exploration well is drilling beyond a depth of 2,400 metres, or 7,875 feet, with surface casing set at 350 metres and a first casing string set at 1,200 metres. The company will soon be undertaking its next set of logging and coring activities and setting the second casing string, targeted at approximately 2,600 metres, or 8,530 feet. The well has been tracking to drilling depth and well cost estimates on schedule and plan, with the primary objectives beneath the current drilling depth.

The Naingopo well is targeting 181 million barrels of unrisked prospective light/medium oil resources, or 937 billion cubic feet of prospective natural gas resources, on a 100-per-cent working interest basis, based on the most recent prospective resources report prepared by Netherland, Sewell & Associates Inc. (NSAI). The well is targeting to drill to a depth of approximately 3,800 metres, or 12,500 feet, and is expected to encounter four primary reservoir intervals targeting both oil and natural gas. If successful, the well would be a major play-opening discovery providing access to multiple drill-ready prospects.

Elsewhere on PEL 73, the company continues to make progress in the construction of the access road for the second Damara fold belt exploration well, prospect P, which is expected to start drilling in the fourth quarter of 2024. Prospect P is targeting 309 million barrels of unrisked prospective light/medium oil resources, or 1.6 trillion cubic feet of prospective natural gas resources, on a 100-per-cent working interest basis, based on the most recent prospective resources report prepared by NSAI.

The company recently conducted a Vibroseis seismic parameter test to establish the best vibrator sweep parameters and the number of vibrators in a fleet, and to investigate field data processing results for future seismic projects on PEL 73. The project commenced on July 30, 2024, and was completed on Aug. 6, 2024. Six runs of a six-kilometre line with different vibrator and sweep configurations were completed first, to reshoot a 23 km line previously shot with an accelerated weight drop (AWD) source. The initial field data processing results from the six km line identified the best vibrator and sweep configuration to use on the 23 km test line. After shooting the 23 km line, the results were processed to a brute stack and compared with the previous AWD processed data, which showed a marked improvement in data quality. Individual shot records from the Vibroseis and AWD were also analyzed and showed similar improvements.

Filing update

The company has filed its quarterly financial statements and management's discussion and analysis for the three months ended June 30, 2024, on SEDAR+. Additionally, the company has prepared its first sustainability report, which will be available on the company's website next week.

About Reconnaissance Energy Africa Ltd.

ReconAfrica is a Canadian oil and gas company engaged in the exploration of the Damara fold belt and Kavango rift basin in the Kalahari Desert of northeastern Namibia and northwestern Botswana, where the company holds petroleum licences comprising approximately eight million contiguous acres. In all aspects of its operations, ReconAfrica is committed to minimal disturbance of habitat in line with international standards and will implement environmental and social best practices in all of its project areas.

We seek Safe Harbor.