ReconAfrica, Namcor in EPL sale agreement

Staff Reporter - Reconnaissance Energy Africa has entered into a definitive purchase and sale agreement with its partner, state-owned Namcor Exploration and Production 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 in northeastern Namibia.

The Canadian oil and gas company said a statement on Thursday the completion of the transaction is expected to occur before the end of 2022 and is subject to ReconAfrica receiving all necessary regulatory approvals, including, but not limited to, approvals from a number of governmental authorities, including the ministry of mines and energy, and the acceptance of the TSX Venture Exchange.

ReconAfrica also announced that, subject to receipt of required acceptance from the TSXV, the company will extend the expiry of a total of 7 475 000 outstanding common share purchase warrants.

WARRANTS

The warrants were issued pursuant to a public offering which closed on 1 March 2022, pursuant to which the company issued 7 475 000 units of the company at a price of C$6.35 per unit.

Each unit consisted of one common share of ReconAfrica and one warrant, with each warrant entitling the holder thereof to purchase one additional share until 31 October 2022, subject to acceleration in certain events, at an exercise price of C$9.00.

The warrants may be subject to acceleration of the expiry date to a date that is 30 calendar days following notice to be provided to the holders of the warrants by ReconAfrica in the event that the moving volume weighted average trading price of the shares on the TSXV over any period of 20 consecutive trading days equals or exceeds C$14.00.

The term of the warrants will be amended to extend the expiry date of the warrants by five months from 31 October 2022 to 31 March 2023. All other terms and conditions of the warrants will remain unchanged.