お知らせ • Aug 18
Reconnaissance Energy Africa Ltd. Announces Hydrocarbon Flow To Surface From Huttenberg Formation At Kavango West 1X And Plans Open Hole Horizontal Testing Reconnaissance Energy Africa Ltd. along with its partners BW Energy (20% WI) and the National Petroleum Corporation of Namibia (NAMCOR, 10% carried WI), announced preliminary production testing results from the three zones in the Huttenberg formation on the Kavango West 1X (KW1X) discovery well, along with plans to advance to open-hole horizontal production testing. The uppermost zone of the Huttenberg formation flowed natural gas and potential liquid content to surface immediately upon perforation, ahead of any acid stimulation, and was flared through the relief flare stack. Flow rates were not measured from the Huttenberg due to previously disclosed equipment limitations, which has been rectified for the upcoming open hole horizontal production test by way of procuring the necessary equipment, which is currently being shipped to site, and by changing the surface operations service provider at site. Production samples, including both natural gas and potential liquid content have been collected in several IsoTubes with results of the compositional analysis expected in the coming weeks from samples sent to laboratories in the United States. This test result completes vertical production testing operations at KW1X. Surface testing equipment associated with the vertical program has been stood down and demobilized as the Company prepares for the next phase of operations. Having flowed natural gas and potentially liquids to surface from two separate zones at KW1X, the next stage of success-based testing is to proceed with an open-hole horizontal production test in the uppermost zone of the Huttenberg formation, with an option for an additional horizontal test in the uppermost zone of the Elandshoek formation. The Huttenberg formation was selected for the initial horizontal test based on flow of natural gas and potential liquids to surface, 75 metres of pay identified from original well log analysis, presence of matrix porosity between large natural fractures, longer horizontal lateral section due to being approximately 600 metres shallower than the Elandshoek, and the Jarvie-1 rig is expected to drill up to 1,000 metres of horizontal section through the Huttenberg formation. The purpose of the vertical production testing program was to determine which parts of the reservoir, if any, could flow hydrocarbons to surface. It was not to determine flow rate as cased vertical wells are not the optimized development design for this fractured reservoir. Phase one production testing achieved a critical milestone; the program established two of the six zones of interest identified in the well contain hydrocarbons capable of flowing to surface. This does not preclude the other sections from flowing hydrocarbons via a more optimized horizontal open hole completion. The next step, an open-hole horizontal production test in the upper Huttenberg zone, is designed to establish a representative flow rate over a large, exposed reservoir section uninhibited by production casing, cement and perforations. An open-hole horizontal well is required to achieve maximum reservoir penetration and optimal fracture intersection, consistent with the natural fracture orientation observed in the reservoir. Formation imaging log (FMI) analysis from wells drilled through the Otavi reservoir indicates fracture density ranging from 1.0 to 12.7 fractures per metre (P90–P10), with fracture orientation running parallel to the fold structure. The current well design contemplates a horizontal lateral of up to 1,000 metres to optimally intersect these natural fracture swarms. Completing the well open hole, without casing or cement, is intended to maximize flow from fractures. These fractures have inclinations of 50-90 degrees, with most fractures being vertical, to near vertical. The horizontal well will be drilled perpendicular to the fracture orientation. Open fractures in analogue carbonate fields enhance permeability and often link matrix porosity with the reservoirs. The Jarvie-1 rig remains on location to drill the horizontal sidetrack laterals. To ensure the best possible outcome from the planned horizontal test, Reconnaissance Energy Africa Ltd. has procured two high pressure pumps, a swabbing unit and additional supporting equipment in the United States which is currently being shipped to site for the continuation of the production testing operation. Routine rig maintenance is currently being conducted as the Company awaits the delivery of equipment and receipt of necessary permit amendments before the resumption of drilling operations. Reconnaissance Energy Africa Ltd. has contracted H2OIL to conduct surface operations and provide additional surface equipment, including an appropriately sized separator unit. Halliburton will continue to provide downhole equipment and services. The Company continues to advance permitting and preparations of the Kavango West 2A (KW2A) appraisal well. Once the horizontal production test at KW1X is complete, the partners plan to move to drill a horizontal well and conduct an open hole horizontal production test at the KW2A appraisal well location to establish reservoir extent and communication. Reported Earnings • Jul 31
Second quarter 2026 earnings released: EPS: US$0.17 (vs US$0.10 in 2Q 2025) Second quarter 2026 results: EPS: US$0.17 (up from US$0.10 in 2Q 2025). Revenue: US$296.3m (up 62% from 2Q 2025). Net income: US$43.9m (up 64% from 2Q 2025). Profit margin: 15% (in line with 2Q 2025). Revenue is forecast to grow 32% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 20% per year. New Risk • May 21
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 13% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). High level of non-cash earnings (28% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (12% net profit margin). Reported Earnings • May 21
First quarter 2026 earnings released First quarter 2026 results: EPS: US$0.13. Revenue: US$172.7m (down 39% from 1Q 2025). Net income: US$32.6m (down 61% from 1Q 2025). Profit margin: 19% (down from 29% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 42% p.a. on average during the next 3 years, compared to a 1.4% growth forecast for the Oil and Gas industry in Europe. Reported Earnings • Feb 06
Full year 2025 earnings released Full year 2025 results: Revenue: US$797.9m (up 1.8% from FY 2024). Net income: US$133.1m (down 20% from FY 2024). Profit margin: 17% (down from 21% in FY 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 1.0% growth forecast for the Oil and Gas industry in Europe. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to kr44.90, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 8x in the Oil and Gas industry in Europe. Total returns to shareholders of 82% over the past three years. 
