Record Resources Forms Strategic Joint Venture with ReconAfrica to Enter Gabon, Africa, Acquiring Oil Development and Exploration Assets and Signs Production Sharing Contract

Core Viewpoint - Record Resources has formed a strategic joint venture with ReconAfrica to explore and develop oil and gas assets in Gabon, acquiring a production sharing contract for the Ngulu block, which is expected to enhance shareholder value and position the company as a significant player in West Africa's exploration and production sector [2][4][6]. Gabon Transaction and Asset Highlights - The joint venture will see Record Resources and ReconAfrica holding working interests of 20% and 55% respectively, with ReconAfrica as the operator [2][15]. - The PSC covers an area of 1,214 square kilometers, equivalent to approximately 54 Gulf of Mexico blocks, located in shallow offshore waters [5][9]. - The existing Loba oil field discovery, with a gross pay of 140 meters and potential production of approximately 20,000 barrels per day, provides low-risk appraisal and development opportunities [5][10]. - The consortium plans to conduct detailed geological studies, advance 3D seismic reprocessing, and drill one well during the initial four-year term [15][11]. Strategic Rationale - This transaction positions Record Resources in a producing hydrocarbon province, allowing for the development of a sustainable high-growth platform [6][8]. - The acquisition adds significant appraisal, development, and exploration potential to the company's portfolio, with near-term oil production expected to generate cash flow for further exploration [7][8]. Exploration Potential - The Ngulu block contains an extensive inventory of high-impact exploration projects, with 28 mapped prospects identified, which are analogous to play types found in the Gulf of Mexico [5][11]. - Advanced seismic reprocessing is planned to enhance imaging of prospects and reduce drilling risks, with a focus on the Lepidote Deep, Pompano Dentex, and Palomite complexes [12][13][14]. Industry Context - Gabon is a leading oil producer in Africa, with current production exceeding 220,000 barrels per day and proven reserves of approximately 2 billion barrels [17][18]. - The Gabonese government is committed to creating a favorable regulatory environment to attract investment in the oil and gas sector, which is crucial for the country's economic stability [17][18].