ReconAfrica completes acquisition of Renaissance Oil
Toronto-listed Reconnaissance Energy Africa (ReconAfrica) has completed the acquisition of fellow Canadian explorer Renaissance Oil Corp, it said on July 27. The deal was announced in April this year.
As per the agreement, Renaissance shareholders received 0.046 of a common share of ReconAfrica for each Renaissance share held at the close of business on July 26. The deal values Renaissance at approximately C$155mn ($123mn).
Renaissance shares are expected to be delisted from the Toronto Stock Exchange at the close of trading on July 29, ReconAfrica said. Renaissance is an onshore operator in Mexico with 100% working interest in approximately 1,200 boe/day. It holds an option to acquire a 50% working interest, in all rights from surface to basement, in a petroleum licence, comprising 2.2mn acres in the Kavango sedimentary basin, in Botswana. The licence operator is ReconAfrica.
ReconAfrica is a junior oil and gas company engaged in the development of the newly discovered Kavango basin, in northeastern Namibia and northwestern Botswana, where it holds a 90% working interest in a 25,500-km2 petroleum licence. It recently started drilling the first of three planned wells at the site. Earlier this month it got the approval of the Namibian government to shoot a 2D seismic survey in the Kavango East and West regions.