CALGARY,
AB, Nov. 21, 2024 /CNW/ - Reconnaissance
Energy Africa Ltd. (the "Company" or "ReconAfrica") (TSXV: RECO)
(OTCQX: RECAF) (Frankfurt: 0XD)
(NSX: REC) announces an operational update with respect to its
exploration activities on Petroleum Exploration Licence 073 ("PEL
73"), onshore Namibia, the
appointment of directors and the filing of its financial results
for the quarter ended September 30,
2024.
Highlights
- Spud the Naingopo exploration well in the Damara Fold Belt on
July 7, 2024. The well is currently
drilling at a depth of 4,000 metres (13,125 feet).
- Entered into a definitive agreement with BW Energy Limited
(OSE:BWE), for a 20% working interest in Petroleum Exploration
Licence 073, including a $22 million
(US$16 million) equity investment to
support a multi-well exploration program, and additional contingent
payments of US$125 million
($171 million), based on meeting
certain development, production and cash flow milestones.
- Raised gross proceeds of $38.8
million via an underwritten public offering on July 31, 2024.
- Reduced General and Administration costs to $3.2 million from $4.1
million for the three months ended September 30, 2024 compared to September 30, 2023.
- Completed the Company's first Sustainability Report.
- Granted approval for the First Renewal Exploration Period by
the Department of Mines of the Republic of Botswana for PEL 001 onshore Botswana. The First Renewal Exploration Period
covers the period from October 1,
2024, to September 30,
2028.
- Listed on the Namibian Stock Exchange ("NSX") under the symbol
"REC".
- Appointed Gitane De Silva to our
team as the new Senior Vice President ESG, Communications &
Stakeholder Relations on October 21,
2024.
- Elected W. Derek Aylesworth,
independent director, and Brian
Reinsborough, President and CEO, to the Board of Directors,
effective November 20, 2024.
Brian Reinsborough,
President and CEO of the Company stated: "Since the last
Annual General Meeting of shareholders, ReconAfrica has undergone
significant change in every aspect of how the Company operates. It
was another quarter whereby we reduced our general and
administrative costs by nearly $1
million compared to the same period a year ago. We have
positioned the Company for success following our joint venture
process with BW Energy. We have nearly completed drilling
operations on the Naingopo exploration well, our first Damara Fold
Belt well, and have prepared the access roads and well pad for our
second well, Kambundu. We are also planning the first onshore 3D
seismic program ever completed in Namibia. Our technical team are proven oil
finders who have created significant value in the past while we
have added significant experience at the executive level and added
core competencies at the board level. I would like to welcome
Derek Aylesworth to the Board of
Directors and I look forward to the next year as we continue to
deliver on our objectives for shareholders."
Operational Update
The Company is currently drilling ahead on the Naingopo
exploration well at a depth of approximately 4,000 metres (13,125
feet). On completion of drilling activities, the Company will
undertake a comprehensive logging and coring program, and perform a
vertical seismic profile of the well. Results of the well will be
provided following a thorough analysis of an extensive logging
program and any obtained oil or natural gas samples.
Road and well site construction activities are nearly complete
on the Kambundu exploration (Prospect P). We anticipate moving to
the Kambundu exploration well following the complete analysis of
the results of the Naingopo exploration well.
Appointment of Directors
Joining the Board of Directors as an independent director is W.
Derek Aylesworth, an independent
businessman. Mr. Aylesworth has over 30 years of experience in the
Canadian oil and gas industry having previously served as Chief
Financial Officer of TSX listed Seven Generations Energy and TSX
and NYSE listed Baytex Energy Corporation. Since September 2023, he is a director of TSX and NYSE
listed Greenfire Resources Ltd, and is Chair of the Audit and
Reserves Committee. Mr. Aylesworth is a Chartered Professional
Accountant and holds a Batchelor of Commerce degree.
Additionally, President and Chief Executive Officer,
Brian Reinsborough, has been elected
to the Board of Directors.
Filing Update
The Company has filed its quarterly financial statements and
management's discussion and analysis for the three months ended
September 30, 2024, on SEDAR+ at
www.sedarplus.ca.
About ReconAfrica
ReconAfrica is a Canadian oil and gas company engaged in the
exploration of the Damara Fold Belt and Kavango Rift Basin in the
Kalahari Desert of northeastern Namibia and northwestern Botswana, where the Company holds petroleum
licenses comprising ~8 million contiguous acres. In all aspects of
its operations, ReconAfrica is committed to minimal disturbance of
habitat in line with international standards and to implementing
environmental and social best practices in all of its project
areas.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
Cautionary
Note Regarding Forward-Looking Statements:
Certain statements contained in this
press release constitute forward-looking information under
applicable Canadian, United States
and other applicable securities laws, rules and regulations,
including, without limitation, statements with respect to the
drilling and analysis of the Naingopo exploration well, the
drilling of the Kambundu exploration well, the joint venture with
BW Energy, the 3D seismic program, the Company's commitment to
minimal disturbance of habitat, in line with best international
standards and its implementation of environmental and social best
practices in all of its project areas. These statements relate to
future events or future performance. The use of any of the words
"could", "intend", "expect", "believe", "will", "projected",
"estimated" and similar expressions and statements relating to
matters that are not historical facts are intended to identify
forward-looking information and are based on ReconAfrica's current
belief or assumptions as to the outcome and timing of such future
events. There can be no assurance that such statements will prove
to be accurate, as the Company's actual results and future events
could differ materially from those anticipated in these
forward-looking statements as a result of the factors discussed in
the "Risk Factors" section in the Company's annual information form
dated July 29, 2024, available under
the Company's profile at
www.sedarplus.ca. Actual future
results may differ materially. Various assumptions or factors are
typically applied in drawing conclusions or making the forecasts or
projections set out in forward-looking information. Those
assumptions and factors are based on information currently
available to ReconAfrica. The forward-looking information contained
in this release is made as of the date hereof and ReconAfrica
undertakes no obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws.
Because of the risks, uncertainties and assumptions contained
herein, investors should not place undue reliance on
forward-looking information. The foregoing statements expressly
qualify any forward-looking information contained
herein.
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SOURCE Reconnaissance Energy Africa Ltd.
