Announcement • Mar 28
Reconnaissance Energy Africa Ltd. Commences Production Testing Operations At Kavango West Discovery and Provides Operational Update Reconnaissance Energy Africa Ltd. commenced testing operations on schedule at the Kavango West 1X discovery well. Regulatory permits required to proceed with production testing have been received and work crews are on site preparing the well for testing. The production liner, which was procured in North America, has arrived on site. The Company has signed contracts with Halliburton and Schlumberger Oilfield Services for equipment and services. Local suppliers have been engaged in multiple support capacities. By incorporating additional rock data, log analysis has continued to be updated which has resulted in refinements to previously disclosed results of the well log analysis. The current petrophysical analysis indicates 75 metres (246 feet) of net hydrocarbon pay in the Huttenberg formation, an increase over the previously disclosed 64 metres (210 feet). ReconAfrica, as operator, will be conducting production testing across six optimized zones, three of which are in the Huttenberg formation and three in the deeper Elandshoek formation. A total of 345 metres (1,132 feet) of prospective interval will be isolated and perforated for testing. The Company is currently reprocessing 3D seismic data over the key areas of the Ngulu block, including the Loba discovery. Upon completion, the Company will select an appraisal location on the Loba oil discovery and commission a third-party resource report, which is expected by the end of 2026. The Ngulu block, which covers 1,214 Km2 and is equivalent to 54 Gulf of Mexico blocks, is in shallow water offshore central Gabon. This strategic block is located on trend to several sizable producing oil fields. The key aspects of the Ngulu block include the Loba oil discovery and over 28 seismically identified prospects in the pre- and post-salt plays. New Risk • Jan 20
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 42% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$58m free cash flow). Shareholders have been substantially diluted in the past year (42% increase in shares outstanding). Revenue is less than US$1m. Minor Risks Share price has been volatile over the past 3 months (17% average weekly change). Significant insider selling over the past 3 months (CA$136k sold). Announcement • Jan 20
Reconnaissance Energy Africa Ltd. has completed a Composite Units Offering in the amount of CAD 32.000085 million. Reconnaissance Energy Africa Ltd. has completed a Composite Units Offering in the amount of CAD 32.000085 million.
Security Name: Units
Security Type: Equity/Derivative Unit
Securities Offered: 33,684,300
Price\Range: CAD 0.95
Discount Per Security: CAD 0.057
Security Name: Units
Security Type: Equity/Derivative Unit
Price\Range: CAD 0.95
Discount Per Security: CAD 0.0285
Security Name: Common Shares
Security Type: Common Stock
Security Name: Warrants
Security Type: Equity Warrant 
