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    ReconAfrica increases stake in Namibian permit

Summary

The Canada-listed firm has signed a letter of intent with its partner, the National Petroleum Company of Namibia.

by: Shardul Sharma

Posted in:

Complimentary, Africa, Security of Supply, Corporate, Exploration & Production, Investments, News By Country, Namibia

ReconAfrica increases stake in Namibian permit

Africa-focused Reconnaissance Energy Africa (ReconAfrica) has signed a letter of intent with its partner, the National Petroleum Company of Namibia (NAMCOR) to acquire half of the latter’s 10% carried interest in the petroleum exploration licence PEL 73 in the Kavango basin, Namibia, it said on February 6.

Consideration for the 5% carried interest shall comprise 5mn common shares in the capital of ReconAfrica having an aggregate value of C$31.75mn with a deemed price per ReconAfrica share of C$6.35mn, and US$2,000,000 in cash.

The consideration shares will be subject to a hold period of four months and one day under Canadian securities laws as well as certain restrictions on resale as agreed to with the company, the company said.

ReconAfrica and NAMCOR shall enter into a mutually acceptable agreement by February 17. The deal is expected to close by March 30.

ReconAfrica is a junior oil and gas company engaged in the development of the newly discovered Kavango basin, in northeast Namibia, 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.