ReconAfrica: Millions for bigger stake in Kavango Basin

Reconnaissance Energy Africa has entered into a Letter of Intent with its partner, the National Petroleum Company of Namibia 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.
The listed Canadian oil and gas company said in an announcement to its investors that the consideration for the 5% carried interest shall comprise of five million common shares in the capital of ReconAfrica, having an aggregate value of C$31.75 million – around N$388.5 million at the current exchange rate.
In addition, ReconAfrica will pay Namcor US$2 million in cash, about N$31 million.
“ReconAfrica and Namcor shall enter into a mutually acceptable agreement and other related documents containing the terms and conditions of the transaction, including those that are customary in international oil and gas transactions by February 17, 2022.
“Closing of the transaction is expected to occur on or about March 30, 2022, and is subject to the company receiving all necessary regulatory approvals, including, but not limited to, the acceptance of the TSX Venture Exchange to the issuance of the consideration shares,” ReconAfrica said.
The managing director of Namcor, Immanuel Mulunga, said: “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.”
According to Mulunga: “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.”