NAMIBIA: Independent 3rd Party Natural Gas Resource Report for the Damara Fold Belt, Kavango Basin Indicates Significant Upgrade in Prospective Resources to 22.4TCF

Reconnaissance Energy Africa has announced an updated prospective resource estimate supported by a Prospective Resource Report (dated June 22, 2023 with an effective date of March 31, 2023) focused solely on the new Damara Fold Belt gas play located within the Company’s Petroleum Exploration Licence (‘PEL 73’) in the Kavango Basin, NE Namibia in which the Company holds a 90% working interest.

ReconAfrica engaged Netherland, Sewell & Associates, Inc. (NSAI), an independent qualified reserves evaluator based in Texas, to prepare the Report. A copy of the Report can be found on SEDAR via the following – SEDAR.

The significant upgrade in Prospective Resources since the last report, the Prospective Resource Report (dated April 27, 2022 with an effective date of December 31, 2021), is based on and driven by the Company’s strategy to fast-track acquisition and processing of an additional 1100 km + of 2D seismic over the Damara Fold Belt play, which was initially discovered in the first phase of 2D seismic acquisition in 2021.

Within the Fold Belt fairway on PEL 73, the Company has so far identified 9 large anticlinal prospects* and 12 anticlinal leads** of which the 9 prospects are included in the Report. The resource estimates on the properties described in the Report represent an initial unrisked 22.4 Trillion Cubic Feet (‘TCF’) of undiscovered gas initially-in-place for the Project.

* A prospect is a potential accumulation within a play that is sufficiently well defined to represent a viable drilling target.
** A lead is a potential accumulation within a play that requires more data acquisition and/or evaluation to be classified as a prospect.

REPORT HIGHLIGHTS:

Summary of Undiscovered Gas Initially-In-Place (1)

(As of March 31, 2023)

Category	Project Gross (100%)	Company Gross (90% WI)
Best Estimate (2U) (2)	Conventional Natural Gas (Bcf)	Conventional Natural Gas (Bcf)
	22,383	20,145

Summary of Unrisked Prospective (3) Gas Resources (4)

(As of March 31, 2023)

Category	Project Gross (100%)	Company Gross (90% WI)	Net prospective resources after royalty deduction
Best Estimate (2U) (2)	Conventional Natural Gas (Bcf)	Conventional Natural Gas (Bcf)	Conventional Natural Gas (Bcf)
	14,549	13,094	12,439

Summary of Risked Prospective Gas Resources (5)

(As of March 31, 2023)

Category	Project Gross (100%)	Company Gross (90% WI)	Net prospective resources after royalty deduction
Best Estimate (2U) (2)	Conventional Natural Gas (Bcf)	Conventional Natural Gas (Bcf)	Conventional Natural Gas (Bcf)
	1,370	1,233	1,172

(1) Undiscovered Gas Initially-In-Place is that quantity of natural gas that is estimated on a given date to be contained in accumulations yet to be discovered. The recoverable portion of undiscovered gas initially-in-place is referred to as prospective resources; the remainder is unrecoverable.
(2) 2U is the best estimate scenario of prospective resources.
(3) Prospective Resources are those quantities of gas estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
(4) Unrisked Prospective Resources – these estimates are the volumes that could reasonably be expected to be recovered in the event of the discovery and development of these prospects.
(5) Risked Prospective Resources – these estimates are based on unrisked prospective resources that have been risked for chance of discovery and chance of development. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development.