Core Insights - Record Resources Inc is strategically entering the global oil and gas market with a focus on a significant offshore asset in Gabon, a region described as one of the last unexplored, well-rich areas in the world [2][11] - The company is forming a joint venture with Reconnaissance Energy Africa to explore the offshore Ngulu Block, which is seen as the foundation for a new international exploration and production platform [2][5] Asset Overview - The Ngulu Block covers approximately 1,200 square kilometers in shallow offshore waters, comparable in size to about 50 Gulf of Mexico blocks, and is located in Gabon's most productive oil trend [3] - Major operators like TotalEnergies and Perenco are already producing nearby, indicating the basin's commercial viability [3] Financial Structure - Record Resources holds a 20% working interest in the Ngulu Block, while ReconAfrica, as the operator, owns 55% and will fully carry Record through the initial four-year work program, which includes seismic reprocessing and drilling [4] - The absence of near-term funding obligations is a significant advantage for the company as it repositions itself in the market [4][5] Development Potential - The Ngulu Block features the Loba oil discovery, which was drilled in 1976 but never developed due to technological limitations; modern techniques now allow for reassessment [7] - The original Loba well recovered 27-degree API oil, and the company plans to conduct appraisal testing to confirm its potential [8] - Management estimates the potential to confirm 30 to 50 million barrels of contingent resources, with initial production projected at around 10,000 barrels per day, potentially doubling in a second phase [9] Exploration Opportunities - The Ngulu Block contains 28 mapped prospects across post-salt and pre-salt plays, allowing multiple targets to be tested from a single well [10] - Each well is expected to target at least three reservoir horizons, providing multiple value drivers for the company [10] Market Environment - Gabon produces over 220,000 barrels per day and has a stable fiscal and political framework, making it an attractive location for investment [11] - The government has shown openness to new investments, which bodes well for Record Resources' future operations in the region [11]