Mr. Brian Reinsborough reports

RECONAFRICA ANNOUNCES THE RESULTS OF THE FIRST DAMARA FOLD BELT EXPLORATION WELL AT NAINGOPO

Reconnaissance Energy Africa Ltd. has released the results of the Naingopo exploration well within the Damara fold belt on petroleum exploration licence 73 (PEL 73), onshore Namibia.

Highlights of the Naingopo well:

• Encountered over 50 metres of net reservoir in the Otavi group, derived from log analysis and indications of oil, which will be further confirmed from side wall cores;
• Indications of oil observed from the Damara fold belt;
• Follow-on drilling in the Damara fold belt is accelerated to drill prospect I ahead of Kambundu, which is expected to spud in July, 2025.

Brian Reinsborough, president and chief executive officer of the company, stated: "We are excited about the results of this well, which opens the play and demonstrates a working petroleum system within the Damara fold belt. The importance of finding over 50 metres of net reservoir with indications of oil in this well is significant. The primary objective in the Otavi above the main fault was not penetrated due to seismic uncertainties; however, the Otavi was penetrated at predicted depth below the main fault, which contained evidence of oil. Further drilling is planned to delineate the full extent of the Damara fold belt play. Multiple indications of oil were encountered in the Naingopo well, and we plan to continue to analyze all fluid and rock samples, which may take several months. Based on our technical learnings from the Naingopo well results, we have further derisked prospect I and plan to drill this prospect ahead of Kambundu."

Chris Sembritzky, senior vice-president of exploration, stated: "I want to thank and congratulate our technical team for their technical rigor and efforts, which contributed to this success. Finding the presence of oil in the Otavi, as well as reservoir at these depths, is critical for the opening of the Damara fold belt play. The Naingopo well was invaluable for unlocking our understanding of the play, as well as for further derisking the petroleum system elements and specific prospects. We may return to Naingopo for further appraisal drilling to fully test the extent of the structure. With the acquisition and processing of the vertical seismic profile (VSP), we feel confident that any uncertainty with structure has been eliminated with respect to prospect I. We are excited to move to our next prospect as we seek to unlock the significant resource potential of the Damara fold belt."

Naingopo exploration well

The Naingopo well reached a total depth of 4,184 metres on Nov. 26, 2024. The well proved the occurrence of both the Mulden and Otavi stratigraphy. The well encountered 52 metres of net reservoir in the Otavi group, with the Mulden reservoirs being tighter than expected. The Naingopo VSP has allowed us to correlate the well results to the Otavi seismic event, derisking the Otavi presence in future Damara fold belt prospects. Additionally, the indication of oil via rock fluorescence was pervasive within the Otavi group. This interval of fluorescence was associated with oil being recovered at surface in the drilling mud system.

Future plans

Side wall cores, isotubes, cuttings and fluid samples are currently with third party service providers for analysis. Additionally, the VSP processing is being finalized, along with the structural and stratigraphic interpretations from the formation image logs.

In addition to the plan to move next to prospect I in the Damara fold belt, the company is advancing permitting for its planned three-dimensional seismic acquisition program, which is expected to include both rift basin and Damara fold belt locations and will be conducted by vibroseis. The company expects to commence 3-D seismic acquisition in the second half of 2025.

ReconAfrica holds a 70-per-cent working interest in PEL 73 and is the operator of the concession. Partners are BW Energy Ltd., with a 20-per-cent working interest, and NAMCOR (National Petroleum Corporation of Namibia), with a 10-per-cent working interest.

About Reconnaissance Energy Africa Ltd. has

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 implementing environmental and social best practices in all of its project areas.

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