Record Resources Expects to Complete Seismic Reprocessing and Resource Report by Year End

Record Resources advances seismic and resource work on Gabon's Ngulu block, targeting year-end milestones.

What the company is saying

Record Resources is emphasizing technical progress on its 20% interest in the Ngulu oil block in Gabon, highlighting the use of advanced 3D seismic reprocessing with DUG’s Full Waveform Inversion (MP-FWI) technology. The company states that both the seismic reprocessing and a new resource report will be completed before year-end, with appraisal well locations for the Loba oil discovery to be selected in parallel. Management frames the Loba complex as a low-cost development opportunity, citing proximity to existing infrastructure and analogies to nearby producing fields. The announcement references potential production of ~20,000 Bbl/d for the Loba complex, based on offset field data, and notes that analogous wells in the region have achieved initial production rates up to 7,600 Bbl/d. The tone is optimistic and forward-looking, with a focus on technical capability and the scale of the opportunity, but does not provide cost estimates, reserves, or economic analysis. Michael Judson (Chairman & CEO) and Robert Kramberger (VP Capital Markets) are named as key executives.

What the data suggests

The disclosed facts confirm Record Resources’ 20% working interest in the Ngulu block, which spans 1,214 km2 and contains over 28 seismically identified prospects. The Loba discovery, made by Elf-Gabon's LOM-1 well, encountered a 140-metre gross oil column (70 metres net pay) of 27° API oil in 60 metres of water, 10 km from Perenco-operated infrastructure. The company is currently reprocessing 3D seismic data and plans to commission a resource report and select appraisal well locations before year-end 2026. Management’s claim of ~20,000 Bbl/d potential production for the Loba complex is based on analogies to nearby fields—Grondin (peak ~25,000 bbl/d), Baudroie (reported 42,000 bbl/d), and Torpille (25,000 bbl/d)—with initial production rates in analogous wells up to 7,600 Bbl/d. No reserves, cost, or economic data are disclosed, and all production figures for Loba are extrapolated from regional analogs, not direct test results. The technical update is specific, but commercial potential remains speculative pending the resource report and appraisal drilling.

Analysis

The announcement is generally positive in tone, highlighting technical progress on the Ngulu oil block and referencing advanced seismic reprocessing and well planning. However, many of the key claims are forward-looking, such as the expected completion of seismic reprocessing, commissioning of a resource report, and selection of appraisal well locations. The most substantial operational facts (block size, number of prospects, historical discovery data) are historical or technical, not financial or commercial. Claims about 'potential production' and 'low-cost options' are not supported by reserves, cost estimates, or economic analysis, relying instead on analogies to nearby fields. No profitability, cash flow, or capital outlay figures are disclosed, and there is no evidence of immediate earnings impact. The gap between narrative and evidence is moderate: technical progress is real, but commercial outcomes remain speculative.

Risk flags

• ●Execution risk is significant, as the project is still in the pre-drill stage with seismic reprocessing and resource reporting not yet complete. The transition from technical studies to appraisal drilling often encounters delays or technical setbacks.
• ●Commercial risk is high because all production and cost projections for the Loba complex are based on analogies to nearby fields, not on direct test results or reserves estimates from the block itself. Without a completed resource report or reserves certification, the economic viability remains unproven.
• ●Disclosure risk is present due to the absence of cost estimates, capital requirements, or detailed carry terms for Record Resources’ consortium participation. Investors lack visibility into future funding needs and the company’s financial exposure.
• ●Geopolitical and regulatory risk is relevant, as the asset is located offshore Gabon, where changes in government policy, fiscal terms, or permitting processes could impact project timelines and economics.

Bottom line

Record Resources is progressing technical de-risking of its 20% stake in Gabon's Ngulu oil block, with 3D seismic reprocessing and a resource report due by year-end. The company presents a compelling geological case for the Loba complex, referencing nearby analog fields with peak production up to 42,000 bbl/d and initial rates of 7,600 Bbl/d, but all commercial projections are extrapolated rather than based on direct results. No reserves, cost, or economic data are provided, leaving the scale and profitability of the opportunity unquantified. The next key catalyst is the delivery of the resource report and selection of appraisal well locations; only then will investors have a clearer view of the asset’s commercial potential. The main takeaway is that this is a technical milestone, not a commercial breakthrough—future updates must deliver hard resource and cost data to move the story beyond speculation.

Announcement summary

(TSXV:REC) Record Resources Inc. reports that 3D seismic reprocessing and a resource report on its 20 percent-owned Ngulu oil block in Gabon are scheduled for completion by year-end. The 3D seismic reprocessing program is utilizing state-of-the-art technology, specifically DUG’s Full Waveform Inversion (MP-FWI), to illuminate oil-bearing reservoirs within the Loba discovery and the broader salt-related exploration inventory. The reprocessing project is expected to be completed before year end, with a resource report to be commissioned and appraisal well locations for the Loba oil discovery to be selected. Well planning has commenced for an anticipated spud. The Ngulu block covers 1,214 km2, equivalent to 54 Gulf of Mexico blocks, and is located in shallow water offshore central Gabon. The block is on trend with several sizable producing oil fields and contains the Loba oil field discovery as well as over 28 seismically identified prospects in the Pre-salt Gamba / Dentale and Post-salt plays. Marquee prospects on the block include Lepidote Deep (Post-salt play), the Palomite Complex (including Deep Pre-salt and shallow Post-salt prospects), and the Pompano complex (with both postsalt and subsalt prospects). The Loba discovery was made by Elf-Gabon’s LOM-1 well, which targeted the Batanga and Anguille reservoirs, discovering a shallow oil zone (27o API gravity oil) in the Batanga Formation with 140 metres of gross oil column and 70 metres net pay. The Loba oil discovery is in 60 metres of water depth and is approximately 10 kilometres from the Barbier field infrastructure operated by Perenco. Management believes that low-cost options are available for the development of the Loba Complex, including the initial Loba oil discovery and follow-on appraisal targets at Loba Deep and Loba East. The Loba complex has potential production of approximately 20,000 Bbl/d based on offset fields. Wells in analogous fields have shown initial production rates up to 7,600 Bbl/d of oil with a single completion. Analogous fields within 40 km include Grondin Field (peak field production ~25,000 bbl/d), Baudroie field (total production reported at 42,000 bbl/d, IPs up to 7,600 Bbl/d), and Torpille field (total field production reported as 25,000 Bbl/d). Record Resources is a carried partner in a consortium developing oil and gas projects in Central Gabon’s Ngulu Block and also holds an interest in natural hydrogen exploration assets in Ontario, Canada. Michael Judson is Chairman & CEO of Record Resources Inc. Robert Kramberger is VP Capital Markets of Record Resources Inc.

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