VANCOUVER, BC, March 1,
2024 /CNW/ - Reconnaissance Energy Africa Ltd. (the
"Company" or "ReconAfrica") (TSXV: RECO) (OTCQX: RECAF)
(Frankfurt: 0XD) announces the
filing of its financial results for the quarter ended December 31, 2023.
HIGHLIGHTS
- Re-initiated the farmout joint venture process in December 2023 with completion expected in
April 2024. The bid deadline was
extended to allow participating companies time to incorporate the
updated resource report on the Damara Fold Belt currently being
evaluated by Netherland, Sewell & Associates ("NSAI"), and
expected to be completed in March
2024.
- Completed the sale of Renaissance Oil Corp., holder of the
Mexican assets, for deemed gross proceeds of approximately
$10.3 million (US$7.5 million), resulting in a gain on sale of
$85.3 million and a reduction in net
liabilities of $85.6 million.
- ReconAfrica and its joint venture partner the National
Petroleum Corporation of Namibia
("NAMCOR") were granted approval for the Second Renewal Exploration
Period by the Ministry of Mines and Energy ("MME"), which covers
the period from January 30, 2024 to
January 29, 2026. As part of the
approval for the Second Renewal Exploration Period, the Company
requested and has been granted a relinquishment exemption and has
retained 100% of the original acreage.
- Received key land access approvals and completed the surveying,
demining and debushing for Damara Fold Belt - Prospect L, which
will be the first well to be drilled in the upcoming multi-well
drilling program expected to commence in June 2024. Additional civil works are being
undertaken including the construction of well site access roads,
the drilling pad, and the tendering of key long lead oil services
and equipment.
- Streamlined the organization resulting in the reduction of
general and administrative expenses in Q4 2023 by 27% compared to
Q3 2023 and by 32% compared to Q4 2022.
- Working capital of $8.9 million
as of December 31, 2023, including
$5.2 million in cash.
- As disclosed on February 28,
2024, the Company entered into a global settlement agreement
to resolve all previously announced U.S. and Canadian class action
lawsuits. The settlement is subject to coverage by the Company's
insurers and, if approved, will not have any direct financial
impact on the Company.
- Filed a short form shelf prospectus covering a 25 month period
for the offering of securities of the Company in one or more series
of issuances of common shares, warrants, subscription receipts,
units or debt securities for proceeds of up to $120 million to fund the exploration and
evaluation activities of the Company in the Kavango Basin.
Brian Reinsborough, President and
CEO of the Company stated: "The Recon team had a productive quarter
as we significantly advanced our understanding of the prospectivity
of the Damara Fold Belt play, while at the same time advancing our
joint venture process and preparing for drilling operations. Our
technical team has increased our understanding of the oil potential
of the Fold Belt play by integrating all available geochemical data
and conducting additional basin modeling studies. This work is
currently being evaluated by NSAI and we anticipate the revised
resource report in early March. The revised report will also
provide interested third party joint venture partners with an
independent evaluation of the oil and natural gas potential in the
Damara Fold Belt. We expect to wrap up our joint venture process in
April. I recently visited Namibia
where we met with multiple government agencies and ministers who
expressed their appreciation and continued commitment to our
project and the energy industry in Namibia. We would also like to pass along our
deepest condolences to the people of Namibia on the passing of President Dr.
Hage G. Geingob. While observing a
period of national mourning, we were pleased to see the transition
of power to be seamless and professional."
FILING UPDATE
The Company has filed its quarterly financial statements and
management's discussion and analysis for the three and nine months
ended December 31, 2023, on SEDAR+ at
www.sedarplus.ca.
About ReconAfrica
ReconAfrica is a Canadian oil and gas company engaged in the
opening of the newly discovered deep Kavango Sedimentary 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 will implement
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 timing and outcome of the
Company's farmout joint venture process, the timing and
outcome of the NSAI report, the commencement of drilling in
June 2024, the Company's ability to
procure necessary equipment and services for drilling, the approval
and completion of a global settlement agreement to resolve class
action lawsuits, and the issuance of securities under a shelf
prospectus. 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 December 4,
2023, 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.