CALGARY, AB, Aug. 29, 2024 /PRNewswire/ - Reconnaissance Energy Africa Ltd. (the "Company" or "ReconAfrica") (TSXV:RECO) (OTCQX:RECAF) (Frankfurt: 0XD) announces an operational update, the filing of its financial results for the quarter ended June 30, 2024 and the release of the Company's first Sustainability Report.
HIGHLIGHTS
Spud the Naingopo exploration well, which is currently drilling at a depth past 2,400 metres or 7,875 feet. All primary objectives are below the current drilling depth.
Entered into a definitive farm down agreement with BW Energy Limited ("BW Energy") (OSE:BWE), for the sale of a 20% working interest in Petroleum Exploration Licence 73 ("PEL 73"), in northeast Namibia. Under the terms of the agreement BW Energy made a $22 million strategic equity investment in the Company to support a multi-well exploration program, and additional contingent payments of $171 million, based on meeting certain development, production and cash flow milestones.
Raised gross proceeds of $38.8 million via an underwritten public offering in July 2024.
Raised gross proceeds of $17.5 million via bought deal public offering in April 2024.
Reduced General and Administration costs to $3.2 million from $4.2 million for the three months ended June 30, 2024 compared to June 30, 2023.
Increased governance structure at the Board of Directors level, adding the Honourable Diana McQueen ECA, ICD.D as Chair of the Board of Directors, and the appointment of D. Jeffrey Harder, FCPA, FCA, FCBV, ICD.D as a new independent director and Chair of the Audit Committee.
The Company is pleased to announce the Company's first Sustainability Report has been completed and will be available on the Company's website next week.
Brian Reinsborough, President and CEO of the Company stated: "Over the past few months we have improved the Company's balance sheet which enables us to execute our planned multi-well exploration drilling campaign through the completion of two equity financings and our strategic joint venture partnership with BW Energy. Through these transactions, the Company has maximized capital upfront which allows flexibility to execute our program, and positions us with significant capital available for appraisal, evaluation and development activities. We continue to deliver on our strategic objectives, including reducing our cost structure, where we are seeing the benefits of the strategic repositioning of the Company over the past year with nearly $1 million savings on G&A costs in Q1 2024 compared to the prior year. Operationally, things remain on track, with the Naingopo exploration well drilling, on time and on budget. The seismic velocities are running faster than modeled, hence reservoirs are coming in deeper than predicted, with all primary reservoir targets below the current drilling depth. We continue to progress the road construction work ahead of getting the well pad ready for the Kambundu (Prospect P) exploration well which is targeting to start drilling in the fourth quarter. Finally, I am proud to announce that we have ...
