#JustIn: ReconAfrica, Namcor still discussing share sale

The National Petroleum Corporation of Namibia and Canadian firm Reconnaissance Energy Africa (ReconAfrica) are still discussing Namcor’s plans to sell 5% of its stake in its joint oil exploration project in the Kavango Basin.

Namcor currently has a 10% stake in the project and ReconAfrica the rest.

In February 2022, ReconAfrica said it entered into a Letter of Intent with Namcor to acquire half of the Namibian SOE’s 10% carried participating interest in the approximate 6.3 million acres petroleum exploration licence (PEL 73) in the Kavango Basin.

Consideration for the 5% carried interest comprised of 5 million common shares in the capital of ReconAfrica, having an aggregate value of C$31.75 million with a deemed price per ReconAfrica share of C$6.35, as well as US$2 million in cash, it said at the time.

In April 2022, ReconAfrica said it entered into an extension to the Letter of Intent with Namcor regarding the proposed transaction.

Last September, ReconAfrica said it entered into a definitive purchase and sale agreement with Namcor.

At the time, ReconAfrica said the completion of the transaction was expected to occur before the end of last year.

The transaction is subject to the ReconAfrica receiving all necessary regulatory approvals, including, but not limited to, approvals from a number of governmental authorities, including the Namibia’s ministry of mines and energy, and the acceptance of the TSX Venture Exchange.

In a stock exchange announcement yesterday, ReconAfrica said the parties “have not yet completed the transaction pursuant to the definitive purchase and sale agreement, but report that discussions are ongoing”.