10:37 AM EDT, 09/09/2025 (MT Newswires) -- Reconnaissance Energy Africa ( RECAF ) said Tuesday it signed a production sharing contract (PSC) and joint venture agreement with Record Resources (TSXV: REC), the Republic of Gabon and Gabon Oil Company (GOC).

The PSC covers exploration, appraisal, development and production of oil and gas on Gabon offshore Block C-7, renamed Ngulu. Under the JV terms, Recon will operate the block with a 55% interest, Record will hold 20%, GOC 15% and the Republic of Gabon 10% on a carried basis.

"The exploration inventory in Gabon contains play types analogous to the Gulf of Mexico deepwater plays," chief executive Brian Reinsborough said. "We plan to deploy Gulf of Mexico style exploration using state-of-the-art reprocessing to reduce risk and increase our chance of success on exploration drilling in this underexplored region of Gabon."

The PSC area covers 1,214 square kilometers, equivalent to about 54 Gulf of Mexico blocks, in shallow water offshore central Gabon. The Ngulu block lies on trend with producing fields ranging from 38 million to 250 million barrels. The company believes near-term oil production potential could provide cashflow to fund exploration growth.

Recon said the Loba field, discovered in 1976 with 140 meters of gross pay, provides low-risk appraisal and development potential, with possible output of about 20,000 barrels per day.

The company committed during the initial four-year term to conduct geological and geophysical studies, reprocess 3D seismic data and drill one well. Recon said there is significant exploration upside across 28 mapped prospects.

Shares of the company were last seen down 3.2% at $0.60 on the TSX Venture Exchange.

Price: 0.60, Change: -0.02, Percent Change: -3.23