Reconnaissance Energy Africa has struck a definitive deal with the National Petroleum Company of Namibia (Namcor) to increase its ownership in the Kavango Basin licence.
Namcor will exchange a 5% working interest (one half of its working interest) in the licence for US$2million and 5 million shares of ReconAfrica. Upon completion of this transaction, Namcor will be a major shareholder of ReconAfrica.
The deal, which is subject to regulatory approval from the Ministry of Mines and Energy and the Toronto Stock Exchange Venture Exchange (TSXV), is expected to be complete by year end, increasing ReconAfrica’s stake in the licence from 90% to 95%.
ReconAfrica also announced it had extended the expiry date of 7.5 million warrants to the end of March 2023.
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 north-eastern Namibia and north-western Botswana, where the Company holds petroleum licences comprising approximately 8.5 million contiguous acres.
The development comes as Namcor and its partners, Shell Namibia Upstream B.V and Qatar Energy are said to have discovered a working petroleum system for light oil in the Orange Basin, 270km from the town of Oranjemund, where drilling operations commenced in early December 2021 and were safely completed in early February 2022.
Namibia has sought to develop oil and gas fields for decades with no success and the potential oil find could prove to be a game changer for the country.
