Mr. Brian Reinsborough reports

RECONAFRICA ANNOUNCES STRATEGIC ENTRY INTO OFFSHORE GABON AND SIGNING OF A PRODUCTION SHARING CONTRACT THAT ADDS SIGNIFICANT OIL APPRAISAL, DEVELOPMENT AND EXPLORATION OPPORTUNITIES

On Sept. 8, 2025, Reconnaissance Energy Africa Ltd. has entered into a production-sharing contract and a joint venture agreement, led by Recon along with Record Resources Inc., the Republic of Gabon, and its national oil and gas company Gabon Oil Company. The PSC is for the exploration, appraisal, development and production of oil and gas on Gabon offshore block C-7, renamed Ngulu. Under the terms of the joint venture, Recon will be the designated operator, with a 55-per-cent working interest, Record with a 20-per-cent working interest, the Gabon Oil Company with a 15-per-cent working interest and the Republic of Gabon with a 10-per-cent working interest (carried).

Transaction and asset highlights:

• Acquisition positions Recon as an offshore West Africa operator;
• Diversified portfolio with low-risk appraisal, development and exploration assets;
• Near-term oil production potential could provide cash flow to finance exploration growth;
• Capital-efficient entry terms include a large concession with minimal work phased over a four-year commitment;
• Advanced seismic reprocessing to unlock exploration upside while derisking prospects;
• PSC agreement covers 1,214 square kilometres in shallow water offshore central Gabon;
• Ngulu is located on trend and offset to a number of sizable producing fields, which range in size from 38 million barrels up to 250 MMbbl;
• Existing oil discovery, the Loba field, was drilled in 1976 with 140 metres gross pay (70 metres net pay), and provides for low-risk appraisal and development opportunities and near-term production; the Loba field complex has potential production of approximately 20,000 bbl per day in line with offset fields;
• Significant exploration upside from an inventory of 28 mapped prospects that are analogous to play types found in the Gulf of Mexico;
• The company has committed during the initial four-year term to execute detailed geological and geophysical studies, advance 3-D seismic reprocessing on an existing database and drill one well on the block.

Brian Reinsborough, president and chief executive officer, commented: "We are very pleased to be able to diversify our portfolio into an existing oil-producing basin in the Republic of Gabon, complementing our exploration programs in Namibia and Angola. Gabon is Sub-Saharan Africa's fourth-largest producer and exporter of crude oil, and is a jurisdiction that has attractive exploration upside. This strategic entry allows the company to deploy capital to drilling options, including appraisal and development opportunities, with line of sight to near-term production and cash flow.

"The exploration inventory in Gabon contains play types analogous to the Gulf of Mexico deepwater plays. This is an area of expertise for both me and our team, which has extensive experience and success in finding many significant fields. We plan to deploy Gulf of Mexico-style exploration using state-of-the-art reprocessing to reduce risk and increase our chance of success on exploration drilling in this underexplored region of Gabon.

"This transaction, in addition to our high-potential exploration program in Namibia, including the current drilling of the Kavango West 1X well, positions Recon shareholders with significant near-term growth potential."

Strategic rationale: pathway to a full-cycle, offshore exploration and production company

This transaction places Recon into a producing hydrocarbon province with the opportunity to build a long-term and sustainable high-growth platform. Collectively, this transaction adds appraisal, development and exploration potential to the company's portfolio.

Entry terms are attractive for a large concession secured at a low-entry cost with a minimal work program over the initial four-year period. Ngulu contains near-term oil production potential with the development of the Loba field and access to existing infrastructure within 10 kilometres, which provide a low-cost production tie-back. The block also adds an extensive inventory of high-impact exploration projects for future drilling, in addition to exposure to a large pipeline of brownfield opportunities across Gabon.

The transaction advances ReconAfrica's strategy of becoming an offshore West Africa exploration and production company with an expanded footprint and a derisked diversified corporate profile. Anchored by an existing oil discovery, the acquired asset base provides a pathway to potential low-cost development and near-term production, underpinning cash flow growth and financing optionality. Pursuing development close to existing infrastructure reduces costs and drives robust returns. In addition, reprocessing the seismic data could unlock a significant exploration inventory.

Ngulu overview: Gulf of Mexico-style exploration

The PSC agreement, which covers 1,214 square kilometres and is roughly equivalent to 54 Gulf of Mexico blocks, is in shallow-water offshore central Gabon. Ngulu block is located on trend and offset to several sizable producing fields, which range in size from 38 MMbbl up to 250 MMbbl. The company plans to apply state-of-the-art seismic reprocessing to the existing seismic data set to identify additional prospects, as well as conduct an independent third party resource report to outline the size and scope of the opportunities across the block.

The key aspects of the Ngulu block include the Loba oil field discovery made by Elf-Gabon in 1976 and over 28 seismically identified prospects in the presalt Gamba/Dentale and postsalt plays. Marquee prospects on the block include Lepidote Deep (postsalt play) and the Palomite Deep (presalt play). All the prospects are similar to Gulf of Mexico play styles where several members of the current Recon management team have made numerous important discoveries, including 18 discoveries in the Gulf of Mexico made with a cumulative 2.4 billion barrels of oil equivalent.

Loba oil complex: existing 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 metres 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 existing infrastructure, operated by international oil company Perenco. Management believes that low-cost options are available for the development of the Loba complex, which includes the initial Loba oil discovery and follow-on appraisal targets at Loba Deep and Loba East. Loba field complex has potential production of approximately 20,000 bbl/d based on offset fields. These analogous fields are located within 30 to 60 kilometres from the Loba oil complex and are in the same targeted reservoir.

The company is unable to confirm if the reports were prepared by a qualified reserves evaluator or auditor or in accordance with the Canadian oil and gas evaluation handbook.

High-impact exploration inventory

Approximately 28 prospects have been delineated on vintage seismic by prior operators, with estimated sizes consistent with offsetting producing fields ranging from 35 million to 250 million bbl. The company expects to immediately commence a state-of-the-art seismic reprocessing project to clearly identify prospects and develop a drilling inventory of lower-risk exploration targets from the enhanced data set. The company will also initiate a third party resource assessment using the newly enhanced, reprocessed seismic data.

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

Pompano Dentex complex

The Pompano Dentex complex has multiple stacked channel systems within three main targets, Batanga, Lower Anguille and Cap Lopez. The current seismic provides low-quality imaging at the presalt level; however, the application of modern prestack depth migration is expected to significantly enhance imaging and materially improve structural interpretation.

PalomiLmplex

The Palomite complex provides exposure to test multiple prospective horizons in the post, sub and presalt with a single well. The Palomite postsalt cluster targets stacked reservoirs in the Batanga, Anguilee and Cape Lopez zones, while the Palomite presalt cluster targets the Gamba and Dentale reservoirs. The current seismic provides inadequate imaging at the presalt level; however, the application of modern PSDM is expected to significantly enhance imaging and materially improve structural interpretation.

Production-sharing contract

The PSC grants Recon a 55-per-cent working interest and operatorship in the Ngulu contract area for an initial four-year term, with the option to renew for an additional four years. The remaining interests are allocated to Record with 20-per-cent, GOC with 15-per-cent and the Republic of Gabon with a 10-per-cent carried interest. Under the terms of the PSC, the company has committed during the initial four-year term to execute detailed geological and geophysical studies, advance 3-D seismic reprocessing on an existing database, and drill one well on the block.

The transaction was at arm's length with an independent third party, and no finders' fees were incurred.

Overview of oil and gas in Gabon

The oil and gas sector in Gabon remains a cornerstone of its economy. Gabon is one of Africa's leading oil producers, underpinning the country's fiscal stability and external trade.

The government of Gabon has expressed its commitment to creating a regulatory environment that attracts investment and encourages the full development of the country's plentiful natural resources as a means of creating wealth for the country and its people.

Gabon currently produces over 220,000 bbl/d from its reserves of approximately two billion barrels of proven oil reserves and has significant potential for natural gas. There are numerous major international operators in Gabon, including, but not limited to, Perenco, BW Energy, Total Energies, Maurel & Prom, Sinopec, Vaalco Energy, and Panoro Energy.

Research Capital Corp. was acting as an adviser to Recon with respect to the transaction.

About Reconnaissance Energy Africa Ltd.

ReconAfrica is a Canadian oil and gas company engaged in the exploration of the Damara fold belt and the Kavango rift basin in the Kalahari desert of northeastern Namibia, southeastern Angola and northwestern Botswana, where the company holds petroleum licences and access to approximately 13 million contiguous acres. The company also operates the Ngulu block in the shallow waters offshore Gabon. 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 its project areas.

We seek Safe Harbor.