Reconnaissance Energy Africa (ReconAfrica) has signed a letter of intent with its partner the National Petroleum Company of Namibia (NAMCOR) to acquire half of NAMCOR’s 10% carried participating interest in the approximate 6.3 million acres petroleum exploration licence (PEL 73) in the Kavango basin, NE Namibia
Consideration for the 5% carried interest shall comprise (a) 5,000,000 common shares in the capital of ReconAfrica (consideration shares) having an aggregate value of approximately US$31,750,000 with a deemed price per ReconAfrica Share of approximately US$6.35 and (b) US$2,000,000 in cash.
ReconAfrica and NAMCOR shall enter into a mutually acceptable agreement and other related documents containing the terms and conditions of the transaction, including those that are customary in international oil and gas transactions by 17 February 2022.
Immanuel Mulunga, managing director, NAMCOR, stated, “The transaction, is not only less onerous but adds significant strength to NAMCOR’s balance sheet, as well as provides NAMCOR with exposure to the entire Kavango sedimentary basin in Namibia and Botswana. We have the utmost confidence in ReconAfrica as the Company has proven to be a responsible operator in our country with an excellent track record in the performance of its work obligation.”
