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Reconnaissance Energy Africa Ltd
Symbol RECO
Shares Issued 210,887,984
Close 2024-02-22 C$ 1.20
Market Cap C$ 253,065,581
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ReconAfrica hopes to spud Damara well in June

2024-02-23 11:10 ET - News Release

Mr. Brian Reinsborough reports

RECONAFRICA PROVIDES AN OPERATIONS UPDATE AND CHANGE IN THE BOARD OF DIRECTORS

Reconnaissance Energy Africa Ltd. (ReconAfrica) has provided an operations update and noted the resignation of Mark Gerlitz as a member of the board of directors.

Operations

ReconAfrica continues to pursue activities as it prepares to start a multiwell drilling campaign in 2024. To date, all surveying activity has been completed, with demining activities complete on the Damara fold belt prospect L, which is expected to be the company's first drilling location, with an expected spud date in June, 2024. The company is currently in the process of preparing well-site access roads and preparing the drilling pad. Additionally, the company is in the process of tendering all required equipment and services associated with the multiwell drilling campaign, which is expected to see back-to-back wells in the Damara fold belt. Follow-up drilling is expected to be either prospect M or prospect P -- both locations are being prepared for drilling operations.

The company has further progressed its technical assessment of the Damara fold belt over the last several months with the integration of new studies, basin modelling and all available geochemical data. The company now anticipates potentially having oil in the shallower Mulden reservoir intervals, while the deeper Otavi target is expected to have natural gas with liquid/oil yield potential. The company has re-engaged Netherland, Sewell & Associates (NSAI) to evaluate the oil potential of this play, considering the additional information, and anticipates having a revised report issued in March. Over in the Rift play, the company has decided to undertake an additional phase of tight grid 2-D seismic activity to more clearly image the prospects within this play ahead of drilling. The revised target for the first Rift well is in the first half of 2025.

ReconAfrica continues to progress the farmout joint venture process, which was restarted in December, 2023. For this process, the company deconstructed the assessment of all the assets and rebuilt the data room with a data-calibrated petroleum system assessment of the assets. To allow companies in the data room sufficient time to incorporate the pending revised NSAI report into their assessment, the timeline has been extended and is now anticipated to be completed in April, 2024. If a joint venture is completed, the company would expect the successful bidder to participate in the drilling of the Damara fold belt prospect L.

Board of directors

ReconAfrica announces that Mark Gerlitz has tendered his resignation from the board of directors, to pursue other professional interests. Mr. Gerlitz has been a member of the board since February, 2021, and has been an integral part of the company's growth during that period. Mr. Gerlitz's resignation is effective immediately and he has agreed to enter into a consulting agreement with the company to provide transition services as may be requested by the company.

Craig Steinke, chair of the board of directors, commented: "On behalf of the board, we would like to thank Mark for his significant contributions and unwavering commitment to the people of Namibia, and to the company. Mark proposed and initiated the launch of our water well program, which, to date, consists of 36 fresh water wells, allowing over 10,000 civilians in remote villages access to fresh water supplies. Mark has been an engaged and critical member of the board over the past three years, helping on numerous corporate initiatives. We wish him nothing but success in his future endeavours."

Mr. Gerlitz commented: "I would like to thank Craig and the other members of the board, who I have worked with during my tenure, as I move on to pursue additional opportunities. With the company's new management team in place, I know that I am leaving ReconAfrica with strong leadership and in a great position as the company progresses toward an exciting multiwell exploration drilling campaign. I wish the company great success in the future."

About Reconnaissance Energy Africa Ltd.

ReconAfrica is a Canadian oil and gas company engaged in the opening of the newly discovered Kavango sedimentary 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 disturbances 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.

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