Staff Writer
Reconnaissance Energy Africa Ltd (ReconAfrica) has expanded its portfolio with an entry into Gabon’s offshore oil and gas sector.
The company signed a production sharing contract and joint venture agreement with Gabon Oil Company (GOC) and Record Resources Inc.
The deal covers Block C-7, renamed Ngulu, located in shallow waters offshore central Gabon. ReconAfrica will operate the block with a 55% working interest. Record Resources holds 20%, GOC 15%, and the Republic of Gabon a 10% carried interest.
Ngulu covers 1 214 square kilometres and lies close to producing fields with reserves of between 38 million and 250 million barrels.
The block includes the Loba oil discovery, drilled in 1976, which showed 140 metres of gross pay and is estimated to hold production potential of about 20 000 barrels per day.
During the initial four-year term, ReconAfrica has committed to geological and geophysical studies, reprocessing 3D seismic data, and drilling at least one well.
The agreement also allows access to existing infrastructure within 10 kilometres of the Loba field, which the company said will reduce development costs.
The block holds 28 mapped prospects across pre-salt and post-salt plays, with similarities to discoveries in the Gulf of Mexico.
ReconAfrica’s management team, with experience in that region, plans to use advanced seismic techniques to improve imaging and lower exploration risks.
“This transaction, in addition to our high-potential exploration programme in Namibia, including the current drilling of the Kavango West 1X well, positions Recon shareholders with significant near-term growth potential,” said Brian Reinsborough, president and CEO.
The company said the deal aligns with its strategy of becoming a full-cycle offshore exploration and production player in West Africa. Its goal is to combine appraisal, development, and exploration opportunities to build a growth platform anchored by near-term production.
Gabon, sub-Saharan Africa’s fourth-largest crude producer, currently produces more than 220,000 barrels per day from reserves of about 2 billion barrels.
Major operators in the country include Perenco, BW Energy, TotalEnergies, Maurel & Prom, Sinopec, VAALCO Energy, and Panoro Energy.
Caption
ReconAfrica has moved to invest in Gabon.
- Photo: Contributed
