Core Viewpoint - ReconAfrica has announced a C$10 million overnight marketed offering to advance operational activities on its Ngulu Block offshore Gabon and provided an update on the Kavango West 1X exploration well drilling progress [1][5]. Offering Details - The offering consists of units priced at C$0.60 each, aiming for total gross proceeds of C$10 million [1]. - Management and directors are expected to invest approximately C$3 million in the offering [2]. - Each unit includes one common share and one warrant, with the warrant allowing the purchase of a common share at C$0.72 for up to 24 months post-offering [3]. Use of Proceeds - Net proceeds will be allocated to appraisal and exploration activities related to the Ngulu Production Sharing Contract (PSC), including geological studies, seismic data reprocessing, and initial development well advancement at the Loba Complex [4]. Drilling Update - The Kavango West 1X well is currently at a depth of approximately 2,300 meters, with plans to drill an additional 1,500 meters through the Otavi reservoir before reaching a total depth of around 3,800 meters [5][8]. Ngulu Block Overview - ReconAfrica has entered a PSC for the Ngulu Block, holding a 55% working interest, with a joint venture involving Record Resources Inc., Gabon Oil Company, and the Republic of Gabon [9][22]. - The PSC covers 1,214 km² in shallow waters offshore Gabon, with near-term oil production potential from the Loba field, which has a historical gross pay of 140 meters [13][18]. Strategic Rationale - The acquisition of the Ngulu Block enhances ReconAfrica's portfolio with low-risk appraisal and development opportunities, positioning the company as an offshore West Africa operator [12][15]. - The Loba field has potential production of approximately 20,000 barrels per day, aligning with nearby producing fields [18]. Exploration Potential - The Ngulu Block contains 28 mapped prospects, with sizes comparable to existing producing fields ranging from 38 million to 250 million barrels [19]. - Advanced seismic reprocessing is planned to identify additional prospects and enhance the drilling inventory [19][16].