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Reconnaissance Energy (Africa) Ltd V.RECO

Alternate Symbol(s):  RECAF | V.RECO.WT | RCNWF

Reconnaissance Energy Africa Ltd. is a Canada-based oil and gas company. The Company is engaged in the exploration of the Damara Fold Belt and Kavango Rift Basin in the Kalahari Desert of northeastern Namibia and northwestern Botswana. The Company holds interest in a petroleum exploration license no. 0073 (PEL 73) in northeast Namibia and an interest in petroleum exploration rights in northwest Botswana over the Kavango Sedimentary Basin. The Company's exploration license covers an area of approximately 25,341.33 square kilometers (km2) (6.3 million acres) of oil and/or gas exploration properties comprising Blocks 1719, 1720, 1721, 1819, 1820 and 1821 situated in the Kavango Basin of northeast Namibia (the Namibia Licensed Property) and approximately 7,592 km2 (1.88 million acres) in Botswana (the Botswana Licensed Property). The two licenses together comprise over 32,933 km2 (8 million acres).


TSXV:RECO - Post by User

Comment by TurnToTheRighton Feb 22, 2021 6:35pm
339 Views
Post# 32632798

RE:Botswana Farm Out

RE:Botswana Farm OutVery interesting find Redrum. From the wording of the press release from Renaissance, it appears that Mr. Steinke's privately held company (a.k.a. Mr. Steinke) already held the 50% working interest in the Botswana Leases, and he is simply transferring it over to Renaissance for cash and shares, and the associated laibility for the $1MM or $1.5MM payment would likley also transfer to Renaissance.

Smart move for the majority of the payment for the working interest to be in shares, because from what I gather, if RECO hits and develops Botswana acreage, Renaissance could be a huge benficiary (assuming it exercises it's payment option), sending the share price up... along with Mr. Steinke's compensation.

When, and through what agreement, did this 50% working interest transfer originate. I feel like a 50% working interest option is highly valuable for such a large acreage, and what compensation did RECO receive for giving it up?
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