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ReconAfrica increases stake in Kavango Basin licence

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Oilfield Technology,

Reconnaissance Energy Africa Ltd. has entered into a Letter of Intent with its partner, the National Petroleum Company of Namibia (NAMCOR) to acquire half of NAMCOR’s 10% carried participating interest in the approximate 6.3 million acres petroleum exploration licence (PEL 73) in the Kavango Basin, Namibia.

Consideration for the 5% carried interest shall comprise (a) 5 000 000 common shares in the capital of ReconAfrica having an aggregate value of CAN$31 750 000 with a deemed price per ReconAfrica Share of CAN$6.35, and (b) US$2 000 000 in cash.

Closing of the transaction is expected to occur on or about 30 March 2022.

Immanuel Mulunga, Managing Director, NAMCOR, stated: “We are delighted to enter into this strategic and mutually beneficial transaction with ReconAfrica. The transaction, is not only less onerous but adds significant strength to NAMCOR’s balance sheet, as well as provides NAMCOR with exposure to the entire Kavango sedimentary basin in Namibia and Botswana. We have the utmost confidence in ReconAfrica as the Company has proven to be a responsible operator in our country with an excellent track record in the performance of its work obligation.”

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