ReconAfrica Enters Offshore Gabon with Strategic $23 Billion Oil Discovery Deal
Reconnaissance Energy Africa has signed a production sharing contract for Gabon’s offshore Block C-7, now renamed Ngulu, positioning the company as an offshore West Africa operator. The deal includes an existing oil discovery at the Loba field, drilled in 1976, which offers potential production of approximately 20,000 barrels per day with 140 meters of gross pay.
ReconAfrica will operate the 1,214-square-kilometer block with a 55% working interest, alongside Record Resources (20%), Gabon Oil Company (15%), and the Republic of Gabon (10% carried interest). The block contains 28 mapped prospects analogous to Gulf of Mexico play types, with exploration inventory estimated between 35-250 million barrels per prospect.
President and CEO Brian Reinsborough highlighted the strategic diversification into a producing basin, providing “line of sight to near-term production and cash flow.” The company has committed to executing geological studies, advancing 3D seismic reprocessing, and drilling one well during the initial four-year term.
The acquisition positions ReconAfrica in sub-Saharan Africa’s fourth-largest oil-producing nation, complementing exploration programs in Namibia and Angola.
Source: globenewswire.com, bairdmaritime.com
