• ReconAfrica enters Gabon offshore oil with 55% Ngulu stake
• Deal covers 1,214 sq km, includes Loba field, 28 prospects
• Move diversifies portfolio beyond Namibia’s Kavango Basin

Canadian company Reconnaissance Energy Africa (ReconAfrica) officially announced its entry into Gabon's offshore oil sector on Tuesday. The announcement was made following the signing of a production sharing contract and a joint venture agreement with the Gabonese government and the state-owned Gabon Oil Company (GOC).

The agreements specifically concern the shallow-water Ngulu block, formerly known as C-7. Under the terms of the production sharing contract, ReconAfrica will serve as the operator with a 55% stake, alongside Record Resources (20%), Gabon Oil Company (15%), and the Gabonese state (10%).

The contract covers a total area of 1,214 sq km and includes a four-year initial phase for geological studies, 3D seismic data reprocessing, and the drilling of one well. The block contains the Loba field, discovered in 1976 with an estimated production potential of about 20,000 barrels per day, as well as 28 exploratory prospects, including Lepidote Deep and Palomite Complex.

"We are very pleased to be able to diversify our portfolio into an existing oil producing basin in the Republic of Gabon, complementing our exploration programs in Namibia and Angola," said Brian Reinsborough, CEO of ReconAfrica. The company, previously focused on onshore Namibia, is now entering a mature offshore environment with existing infrastructure and regulatory frameworks.

This diversification helps reduce the company's dependence on the complex Kavango Basin project in Namibia, which is still in the exploration phase. ReconAfrica aims to generate revenue quickly by developing the Loba field and utilizing existing infrastructure. This is expected to help finance its exploration campaigns and strengthen its credibility with investors.

For Gabon, the arrival of a new operator is part of the recent reorganization of its oil sector, which included the nationalization of Assala in 2024.

Abdel-Abdel-latif Boureima