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).

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Reconnaissance Energy (Africa) Ltd > The Piggy Back

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Post by Oregonduckon Feb 09, 2022 2:20am

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Post# 34411194

The Piggy Back

The two deals - Namcor and Canaccord - are done almost concurrently at $6.35 totaling 11.5 million new shares from treasury. Both will flood the mkt after the hold periods expired.

The deal buying their 5 percent of Namcor's doesn't make sense. Namcor has 10 percent "free" carried interest. Reco is obligated to pay 100% of all costs plus royalties and taxes. It could be construed as bribes under the Foreign Corruption Bribery Act with giving away 5 million shares plus $2 million cash. The Jount Opertaing Agreement (JOA) states:
"...Under the agreement, the two companies will jointly pursue an ongoing petroleum exploration program in the Kavango East and Kavango West regions of Namibia, with ReconAfrica covering the full costs to commerciality."