Reconnaissance Energy Africa : Corporate Presentation - February 2025
RECO.V
CORPORATE PRESENTATION
Exploring and Developing
The Damara Fold Belt and Rift Basin
Onshore Namibia
WORLD OUTLOOK CONFERENCE - FEBRUARY 2025
TSXV | OTCQX | FRANKFURT | NSX
Prospective Resources Disclosure
With respect to the Company's Namibian assets, as the Damara Fold Belt is a prospective resource and the first potential production in the Kavango Basin, an evaluation of commercialization will await a successful discovery well to provide critical production test data, including rates and pressures. Based on reservoir studies, including samples, core, well log analysis, and internal Company estimates, the production is expected to be a combination of oil, natural gas liquids and natural gas, and the reservoir is expected to be a conventional reservoir system.
With respect to the Company's Namibian assets, as the Rift Basin is a prospective resource and the first potential production in the Kavango Basin, an evaluation of commercialization will await a successful discovery well to provide critical production test data, including rates and pressures. Based on reservoir studies, including samples, core, well log analysis, and internal Company estimates, the production is expected to be oil with some potential gas and gas liquids, and the reservoir is expected to be a conventional reservoir system, not requiring any special technology for production.
Regarding infrastructure, this area of northeast Namibia has good overall infrastructure, including transportation, communications and services. There is no oil or gas production infrastructure at this time. There is a very strong market for local power generation for Namibia and for all of southern Africa. Conceptually, Gas-To-Power technologies are expected to be the initial commercialization approach, and the main transmission grid for the region crosses PEL 73. It is premature at this time to estimate total cost and time to achieve commercial production.
The Prospective Resource Report prepared by Netherland, Sewell & Associates, Inc. ("NSAI"), entitled "Estimates of Prospective Resource to the Reconnaissance Energy Africa Ltd. Interest in Certain Prospects and Leads located in PEL 73, Kavango Basin, Namibia as of March 31,2024" (the "NSAI Report"). Values represent sum of prospective oil and or natural gas resources for prospects on a 100% working interest basis. Subject to approvals of the pending joint venture farm out agreement between Reconnaissance Energy Africa Ltd. ("ReconAfrica") and BW Energy Limited ("BW Energy"), the working interest ownership in PEL 73 would be ReconAfrica 70%, BW Energy 20% and NAMCOR 10%.
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RECONAFRICA
PURE PLAY WEST AFRICA
E&P COMPANY
Corporate Snapshot
Experienced management team with established track record
~8.1 million acres secured with
running room upon success
Multi-well drilling portfolio
Drilling program commenced
De-risked working petroleum system with oil shows and gas seeps
NAMIBIA
BOTSWANA
What's New
New CEO and General Counsel
New strategy
New SVP Exploration and
technical team
Improved governance with
experienced Board of Directors
Streamlined organization
Reduced costs
Enhanced corporate culture, performance and transparency
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Leadership
Extensive Exploration Experience
Executive Team
Technical Advisory Team
BRIAN REINSBOROUGH
Chief Executive Officer
Deepwater Industry thought leader, with over 35 years of experience including 20 years in deepwater Gulf of Mexico with a successful track record of building DW companies; made over 18 discoveries in his career including 2 significant discoveries.
Chairman and CEO
Venari Resources;
President and CEO of
Nexen USA.
Discovered over 2.5 bn of oil in his career and raised over $2.5 bn over the course of his career.
CHRIS SEMBRITZKY
SVP Exploration
Experienced geologist with a track record of international exploration, appraisal and development programs with significant business development experience.
Over a 20-year career at Anadarko he worked in over forty countries.
Prior to his retirement from Anadarko, Chris was the Vice President of International Exploration, Business Development and New Ventures.
ADAM RUBIN
General Counsel
Senior General Counsel providing strategic insight and advice to CEOs and Board Chairs.
Expert on financings, M&A, divestitures, governance, ethics, regulatory and stakeholder relations.
Provides a strong entrepreneurial / business judgement orientation at the highest-level business decisions.
GTIANE DE SILVA
SVP ESG, Stakeholder Relations & Communications
Respected public policy and regulatory leader with over 20 years executive experience at the provincial, national and international levels who is known for her deep expertise in the areas of energy, environment, trade and infrastructure.
Recipient of The International Alliance for Women World of Difference Award.
NICK STEINSBERGER
SVP Operations
35 years of Petroleum Engineering experience in Drilling and Completions.
Innovative and a strong team leader.
Responsible for the stimulation process used in all Shale plays today, developed during his work with Mitchell Energy in the Barnett Shale.
Drilled and completed over 1,200 vertical and horizontal wells throughout North America and worked in most shale basins active today.
CARLOS ESCRIBANO
Chief Financial Officer
Over 15 years of experience serving the resource industry as CFO for several publicly traded multinational corporations.
Depth of experience in financial reporting, strategic planning, tax, treasury, risk management, governance and information technology.
JIM OHLMS
Senior Commercial Advisor
Highly experienced professional with strong Petroleum Engineering foundation and over 30 years of experience.
Proven value delivery through engineering, M&A, international commercial development and exploration.
Served as Managing Director - Ghana / Commercial Manager, West Africa for Anadarko and Occidental.
RODNEY KIRKLAND
Senior Geoscience Advisor
Geoscientist with over 25 years' experience in petroleum systems, prospect generation, and drilling operations.
Successful in both exploration and development roles in numerous basins within the U.S. and globally.
Most recent work focused on Eastern and Southern Africa, including Mozambique (Rovuma basin discoveries), South Africa and Madagascar.
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Delivering on new strategy
2023
2024
2025
Q3
Q4
Strategy
Reset
New CEO and General Counsel
New SVP Exploration and Team
Sold Mexico Assets
Re-Started JV Process
Prioritized Exploration Inventory
Elevated ESG Efforts
Q1
Q2
Q3
Q4
Right Sized the
Company
Civil Cases Settled Streamlined the Organization
Enhanced Governance First Sustainability Report
Drilled Naingopo Well
BW Energy Joint Venture
Secured Financing
Completed Naingopo Well
Evidence of Oil
Prioritized Prospect I
Transforming Potential
into Performance
Q2
Drill Second Exploration Well
Q3
Commence Namibia's First 3D
Seismic Program
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Compelling Investment Opportunity
HIGH IMPACT PORTFOLIO
Deepwater resource potential with onshore
cost structure
Significant running room captured in Damara
Fold Belt play
Play opening wells in the Damara Fold Belt and
Rift Basin plays
MULTIPLE MONETIZATION OPTIONS
In oil success case, proximity to existing, nearby infrastructure allows for faster market access
Ideally located to source low carbon intensity, clean gas to local, regional and global markets
CYCLE TIME
COST STRUCTURE ADVANTAGE
Early Productions System allows oil to market
in 3 years from exploration discovery
Low finding and development costs, cycle time
and significant upside yield great returns
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Namibia Investment Proposition
Large Prospective Resources | High Quality Hotspot
Investments
▪ Over $10 Billion
Majors
▪ Total, Chevron, Azule (BP/ENI), Woodside, Qatar Energy
Past 24 months Discovered
▪ Over 11 Billion Bbls and 8.7 TCF Gas(1)
Business friendly environment
▪ Multi-party stable parliamentary democracy ▪ Pro-business government
▪ Highly developed banking system
Commercial framework
▪ Attractive fiscal terms
▪ Government carry of 10% until commercialization
Legal
▪ Transparent legal and fiscal system
▪ Corruption Perceptions Index - Ranked 59 Globally ▪ International arbitration - UN
Strong government support for energy development
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Strategic Joint Venture
Joint Venture
BW Energy | NAMCOR
Payment Structure
~US$163 Million
Potential Consideration
US$16 million
Equity investment
WORKING INTEREST
▪ Farmed-in for a 20% working interest
US$22 million
▪ Pro-rata share of spending on a multi-well exploration program, seismic or additional drilling
Potential warrant
proceeds
IDEAL PARTNER / COMPLEMENTRY SKILL SETS
▪ Holder of PPL003 onshore Namibia, Kudu gas discovery
US$45 million
▪
Proven operator with exploration and development success in offshore Gabon
Declaration of
▪
Success with both oil and gas exploration and development
commerciality (FID)
additional capital carry
A Partnership For the Long-Term
US$80 million
Production bonuses based
Exploration and Development Potential of PEL 73 Onshore Namibia
on cash flow milestones
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Capital Structure and Trading History
1Y TRADING HISTORY - IMPROVING VOLUME
$1.80
7,000,000
$1.60
6,000,000
$1.40
5,000,000
$1.20
$1.00
4,000,000
$0.80
3,000,000
$0.60
2,000,000
$0.40
$0.20
1,000,000
$-
-
1/2/2024
2/2/2024
3/2/2024
4/2/2024
5/2/2024
6/2/2024
7/2/2024
8/2/2024
9/2/2024
10/2/2024
11/2/2024
12/2/2024
1/2/2025
Daily Consolidated Volume
Daily Closing Share Price (C$)
CAPITALIZATION
(All figures in C$ millions or millions of shares, except per share values)
TSXV:RECO
Share Price(1)
$1.03
Basic Shares Outstanding(2)
265.6
Stock Options(2)
25.5
Compensation Options(2)
0.6
Warrants(2)
58.7
Diluted Shares Outstanding
350.4
Market Capitalization (Basic)
$273.6
EQUITY RESEARCH COVERAGE
Research Capital Corp.
Bill Newman
Fox Davies Capital
Lionel Therond
Haywood Securities
Christopher Jones
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Disclaimer
Reconnaissance Energy (Africa) Ltd. published this content on February 27, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 27, 2025 at 02:11:06.436.