ReconAfrica Provides a Corporate Update and Announces That the Kavango West 1X Well Has Started Drilling

Rhea-AI Summary

ReconAfrica (OTCQX:RECAF) has commenced drilling the Kavango West 1X exploration well in Namibia on July 31st, 2025. The well targets the Damara Fold Belt play with a planned depth of 3,800 metres, expected to penetrate over 1,500 metres of Otavi carbonate reservoir section.

The prospect features a large structural fold spanning 22 kilometers long by 3 kilometers wide. The company has identified over 19 prospects and four leads in the Damara Fold Belt trend, plus secured 5.0 million acres in neighboring Angola through a recent MOU.

Additionally, ReconAfrica has postponed its planned 3D seismic program from H2 2025 to 2026 due to ongoing drilling activities. The company also granted 6,960,000 stock options at $0.60 per share, expiring July 31, 2030.

Positive

• Strategic reprioritization of drilling location based on previous well results
• Large prospect size with 22km x 3km structural fold identified on modern 2D seismic
• Expansion potential with 19 prospects and 4 leads mapped, plus 5.0 million acres in Angola
• Well-defined four-way closure and hydrocarbon migration pathway identified

Negative

• Delay in planned 3D seismic program pushed to 2026
• Company acknowledges concentrated asset risk profile
• Stock option grants may lead to potential dilution

CALGARY, Alberta, July 31, 2025 (GLOBE NEWSWIRE) -- Reconnaissance Energy Africa Ltd. (the “Company” or “ReconAfrica”) (TSXV: RECO) (OTCQX: RECAF) (Frankfurt: 0XD) (NSX: REC) announces that the Kavango West 1X exploration well is currently drilling and provides a corporate update on ongoing operations.

Kavango West 1X (Prospect I) – Well Spud on July 31st

The Kavango West 1X exploration prospect spud on July 31st. The well is planned to reach total depth (TD) of approximately 3,800 metres (12,500 feet) by the end of November 2025 and is expected to penetrate over 1,500 metres of Otavi carbonate reservoir section, which is the primary target of the Damara Fold Belt play.   The prospect is a large structural fold identified on modern 2D seismic data, which extends over 22 kilometers long by 3 kilometers wide. The Company has identified over 19 prospects and four leads mapped in the Damara Fold Belt trend, with an additional 5.0 million acres captured in a recently executed Memorandum of Understanding in offsetting Angola. More information about the Damara Fold Belt Play, and the Kavango West 1X well, can be found in the Corporate Presentation available on the Company’s website.

Brian Reinsborough, President and CEO stated: “We are pleased to announce that we have started drilling the Kavango West 1X well. This is an exciting time for everyone at the Company, our partners and stakeholders in Namibia and, of course, shareholders alike. Originally, the Kavango West 1X location was not scheduled to be the next well, but the location was reprioritized after the results of our last well, Naingopo. While this reprioritizing resulted in a slightly longer lead time to spud this location, the Company prioritizes rigorous technical appraisal with respect to location selection to ensure we have the best possible chance for commercial success. We think that the Kavango West 1X prospect represents our best opportunity in the Damara Fold Belt to unlock the potential of this play and we look forward to reporting results expected before year-end 2025.”

Chris Sembritzky, SVP Exploration commented: “By utilizing our learnings from the Naingopo well, Kavango West 1X represents the best opportunity we have identified on seismic in the Damara Fold Belt play due to its size, hydrocarbon migration pathway and well defined four-way closure.  With our new subsurface learnings, highly experienced drilling crew and optimized, built for purpose drill bits, we believe that we have captured the best possible chance for drilling an efficient, safe and commercially successful well.”

Corporate Update

Due to our ongoing drilling activities, the previously announced 3D seismic program that had been scheduled for the second half of 2025 has been moved to the 2026 operating program.The Company is continually reviewing potential investment opportunities that may include acquisition of further acreage for exploration, development and producing properties and joint venture transactions that target acceleration of production and free cash flow, particularly due to the Company’s concentrated asset risk profile.

Stock Option Grants

As part of the annual compensation review, the Company has granted incentive stock options (the “Options”) to certain directors, officers, employees and consultants of the Company to acquire an aggregate of 6,960,000 common shares at an exercise price of $0.60 per share. The Options are exercisable for a five-year term expiring July 31, 2030, and will be subject to certain vesting provisions as determined by the Board of Directors of the Company in accordance with the Company’s Stock Option Plan. The Options granted to insiders are subject to restrictions on resale until November 30, 2025, in accordance with the policies of the TSX Venture Exchange.     

About ReconAfrica

ReconAfrica is a Canadian oil and gas company engaged in the exploration of the Damara Fold Belt and Kavango Rift Basin in the Kalahari Desert of northeastern Namibia, southeastern Angola and northwestern Botswana, where the Company holds petroleum licences comprising ~13 million contiguous acres. In all aspects of its operations, ReconAfrica is committed to minimal disturbance of habitat in line with international standards and implementing environmental and social best practices in its project areas.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

For further information contact:

Brian Reinsborough, President and Chief Executive Officer
Mark Friesen, Managing Director, Investor Relations & Capital Markets

IR Inquiries Email: investors@reconafrica.com

Media Inquiries Email: media@reconafrica.com

Cautionary Note Regarding Forward-Looking Statements:

Certain statements contained in this press release constitute forward-looking information under applicable Canadian, United States and other applicable securities laws, rules and regulations, including, without limitation, statements with respect to the expected timing of spud of the Kavango West 1X well, the well being drilled to a planned total depth of approximately 3,800 metres (12,500 feet), timing to reach total depth of the well, the planning, timing and commencement of a 3D seismic program, identifying and capturing potential opportunities and the Company’s commitment to minimal disturbance of habitat, in line with best international standards and its implementation of environmental and social best practices in its project areas. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on ReconAfrica's current belief or assumptions as to the outcome and timing of such future events. There can be no assurance that such statements will prove to be accurate, as the Company's actual results and future events could differ materially from those anticipated in these forward-looking statements as a result of the factors discussed in the "Risk Factors" section in the Company's annual information form (“AIF”) dated April 29, 2025 for the financial period ended December 31, 2024, available under the Company's profile at www.sedarplus.ca. Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to ReconAfrica. The forward-looking information contained in this release is made as of the date hereof and ReconAfrica undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

FAQ

When did ReconAfrica (RECAF) start drilling the Kavango West 1X well?

ReconAfrica began drilling the Kavango West 1X exploration well on July 31st, 2025.

What is the target depth of RECAF's Kavango West 1X well?

The well is planned to reach a total depth of 3,800 metres (12,500 feet) and is expected to penetrate over 1,500 metres of Otavi carbonate reservoir section.

How many prospects has ReconAfrica identified in the Damara Fold Belt trend?

ReconAfrica has identified over 19 prospects and four leads in the Damara Fold Belt trend, plus secured rights to 5.0 million additional acres in Angola.

What stock options did ReconAfrica grant in July 2025?

ReconAfrica granted 6,960,000 stock options at an exercise price of $0.60 per share, expiring July 31, 2030.

Why did ReconAfrica postpone its 3D seismic program?

ReconAfrica postponed its 3D seismic program from H2 2025 to 2026 due to ongoing drilling activities.