ReconAfrica, ANPG launch joint exploration project in Angola

ReconAfrica has entered into a Memorandum of Understanding (MoU) with ANPG for a joint exploration project in the Etosha-Okavango basin, located onshore in southeastern Angola. ANPG is Angola's national concessionaire and regulator.

The agreement is a strategic addition to the company's asset portfolio, which creates an opportunity for early entry into onshore Angola at a low cost, with minimal work commitments. It complements ReconAfrica's activities in Namibia and highlights the potential of the Damara Fold Belt and Rift Basin by adding 5.2 million acres in Angola to the existing 6.3 million acres in Namibia in the highly prospective Damara Fold Belt and Rift Basin exploration plays.

"The encouraging technical results from our recent Naingopo exploration well on PEL 73 onshore Namibia have strengthened our belief in the significant hydrocarbon potential of the Damara Fold Belt play," said Brian Reinsborough, President and CEO of ReconAfrica. "Our regional geological models indicate that the promising Fold Belt play, known for hosting some of the world's largest fields and covering extensive areas, likely extends into Angola.

"As a result, we are excited to be entering into a strategic MoU with ANPG. Recent regulatory reforms make Angola an attractive jurisdiction for new oil and gas exploration, and we look forward to working with ANPG and Sonangol as we progress our exploration initiatives.

"This significant transaction underscores the company's strategic focus and complements our activities in Namibia, highlighting the potential within both the Damara Fold Belt and Rift Basin plays. It also aligns with our focus on creating significant value for our shareholders as an early mover into prospective hydrocarbon basins with significant acreage positions. We look forward to implementing our ESG and community outreach programs and creating employment for the people of the Okavango region," Reinsborough continued.

Ownership interest in the MoU Area will be ReconAfrica with an 80% working interest and Sonangol with a 20% working interest. ReconAfrica will have exclusive rights during the MoU term.

Under the terms of the MoU, ReconAfrica will initiate and coordinate geological studies, conduct a regional oil and gas seep study, and plan for a 2D seismic program, as well as perform detailed geochemical analysis and sampling of any oil and gas seeps identified within the MoU area, over a 24-month period.