Reconnaissance Energy Africa Ltd. entered a production sharing contract and joint venture (JV) agreement with Record Resources, the Republic of Gabon, and Gabon Oil Company, the country’s national oil and gas firm.
The Canadian oil and gas company said the deal covers exploration, appraisal, development, and production on Gabon’s offshore Block C-7, now renamed Ngulu.
Reconnaissance Energy Africa CEO Brian Reinsborough said the company is pleased to diversify into an established oil-producing basin in Gabon, strengthening its ongoing exploration work in Namibia and Angola.
He explained that the move gives the company capital deployment options for drilling, including appraisal and development, with a clear path to near-term output and revenue.
Reinsborough highlighted Gabon as sub-Saharan Africa’s fourth-largest crude producer and exporter, noting its strong potential for exploration.
Under the JV terms, Reconnaissance Energy Africa will operate the project with a 55% working interest. Record Resources will hold 20%, Gabon Oil Company 15%, while the Republic of Gabon will retain a 10% carried interest.
The company emphasized that this acquisition positions it as an offshore West Africa operator with near-term oil production potential, creating cash flow to support further exploration growth.
source: www.proactiveinvestors.com
African Energy Council