tdbowieknife
2 days ago
BW Energy acquires 6.7% of ReconAfrica for US$16m and a 20% working interest in PEL 73 for US$125m
ReconAfrica has found a joint venture partner – BW Energy – with a hefty US$16 million investment.
BW Energy, which has a 95% interest in the Kudu field, is paying US$16 million for an ownership of 6.7% in ReconAfrica.
The company is also acquiring a 20% working interest in PEL73 in exchange for future payments of up to US$125 million upon successful exploration outcomes, of which US$45 million comes at declaration of final investment decision of a commercial discovery, US$5 million on first production, and three tranches of US$25 million after certain cash flow milestones are reached.
ReconAfrica is engaged in the opening of the newly discovered Kavango Sedimentary Basin in the Kalahari Desert of northeastern Namibia and northwestern Botswana, where the company holds petroleum licences comprising ~8 million contiguous acres.
ReconAfrica has been looking for a partner for months.
The joint venture structure preserves a 70% working interest in PEL 73 for ReconAfrica, 10% carried interest for Namcor and 20% working interest for BW Energy.
BW Energy will participate in ReconAfrica’s two Damara Fold Belt exploration wells and a 3D seismic program.
The company also has an option to join two Rift Basin exploration wells for over two years.
In return, BW Energy will earn a US$45 million bonus at the declaration of commerciality (final investment decision), providing additional capital carry through to the first production.
The company will also receive US$80 million in production bonuses based on certain cash flow milestones.
After achieving positive free cash flow, BW Energy will earn a further US$141 million.
ReconAfrica has also agreed with Research Capital Corporation to be the lead underwriter and sole book-runner.
ReconAfrica CEO Brian Reinsborough welcomed BW Energy as a partner in Namibia.
“Our farm-out joint venture process was thorough, which attracted significant interest from high-quality companies of all sizes.
“BW Energy’s offer met our guidelines to ensure strategic alignment for a multi-well exploration drilling program while retaining significant upside exposure on success.
“We continue to execute our strategic priorities set out last year with the company on track to drill a portfolio of opportunities in the Damara Fold Belt and the Kavango Rift Basin,” Reiborough said.
He added that the first well, Naingopo, is currently drilling and is supported by BW Energy, whose high-quality technical team will add significant value to executing ReconAfrica’s forward exploration plans.
BW Energy CEO Carl Arnet said the transaction will enable them to expand their footprint in a strategically important energy region and further their position as a leader in Namibia’s development towards energy independence.
Arnet said the data and insights gained through ReconAfrica’s exploration campaign will further BW Energy’s understanding of Namibia’s geology and petroleum system and help de-risk planned exploration and development of our Kudu licence.
https://theextractormagazine.com/2024/07/17/bw-energy-acquires-6-7-of-reconafrica-for-us16m-and-a-20-working-interest-in-pel-73-for-us125m/
..
.
tdbowieknife
2 days ago
Strategic Farm Down Transaction
ReconAfrica is selling a 20% working interest in PEL 73, onshore northeast Namibia, to BW Energy, in exchange for total potential consideration of US$141 million (C$193 million), including US$16 million (C$22 million), equity investment and an additional US$45 million (C$62 million) in carry payments based on achievement of commerciality (final investment decision). These payments will be paid in two installments, one at FID and the second payment one year after production. In the event of development of discoveries, production milestone payments could total an additional US$80 million (C$109 million). Three separate production payments of US$25 million (C$34 million), are made after BW Energy reaches certain free cash flow milestones. An additional first production payment of US$5 million (C$7 million), is paid sixty days after the start of commercial production. On completion of the transaction, the ownership interests in PEL 73 will be; ReconAfrica 70%, BW Energy 20%, and NAMCOR 10%. ReconAfrica remains the operator of PEL 73.
Completion of the transaction is subject to the satisfaction of customary closing conditions, including entering into a definitive farm down agreement and approvals from NAMCOR (the state oil company of Namibia) and the Ministry of Mines and Energy in Namibia.
Multi-Well Exploration Drilling Campaign and Development Capital
The Joint Venture transaction has been structured to provide tiers of financing to cover capital requirements in each of the phases of exploration, development and production.
Together with the concurrent Offering, the Company has the financial runway to execute a high impact multi-well exploration drilling program with play opening exposure in the Damara Fold Belt, on a 100% working interest basis, to over 17.1 billion barrels of undiscovered original oil-in-place, consisting of 3.4 billion barrels of unrisked prospective oil resources, based on the most recent prospective resource report prepared by Netherland, Sewell & Associates Inc. (“NSAI”), dated March 12, 2024(1) (as announced in a press release dated March 14, 2024). On exploration success, the Company has built-in bonus payments to fund the program to first production. On commencement of commercial production, the transaction further exposes shareholders to certain production payments based on cash flow milestones.
https://finance.yahoo.com/news/reconafrica-announces-strategic-partnership-bw-204000122.html
tdbowieknife
2 days ago
ReconAfrica Announces a Strategic Partnership with BW Energy to Explore Onshore Namibia and Concurrent C$35 Million Overnight Marketed Offering Led by C$22 Million Strategic Investment from BW Energy
Key Highlights of Letter Agreement:
Working interest sold to BW Energy is 20%
BW Energy to participate in two Damara Fold Belt exploration wells and a 3D seismic program, with an option to participate in two Rift Basin exploration wells over 2-year period
US$16 million (C$22 million), equity investment supporting the exploration program
US$45 million (C$62 million), bonus earned at declaration of commerciality (final investment decision), providing additional capital carry through to first production
US$80 million (C$109 million), of production bonuses based on certain cash flow milestones achieved by BW Energy
US$141 million (C$192 million), total potential consideration, including all incentives and production bonuses which is paid after achieving positive free cash flow
The joint venture structure preserves a 70% working interest in PEL 73 for ReconAfrica, exposing shareholders to significant upside on success
Provides alignment with strategic partner to explore both the Damara Fold Belt and Kavango Rift Basin with significant in country expertise on oil and gas monetization markets
https://marketwirenews.com/news-releases/reconafrica-announces-a-strategic-partnership-with-b-5008354714821718.html
..
.
tdbowieknife
3 months ago
ReconAfrica Announces an Operations Update, Joint Venture Update and Conference Event.
NEWS PROVIDED BY
Reconnaissance Energy Africa Ltd.
Apr 18, 2024, 06:00 ET
VANCOUVER, BC, April 18, 2024 /PRNewswire/ - Reconnaissance Energy Africa Ltd. (the "Company" or "ReconAfrica") (TSXV: RECO) (OTCQX: RECAF) (Frankfurt: 0XD) announces an operations update with respect to activity relating to Petroleum Exploration Licence 73 ("PEL 73"), onshore northeast Namibia, an update with respect to the ongoing joint venture process and a conference event.
Brian Reinsborough, President and CEO commented: "With our recently completed upsized bought deal financing we are now in a position to commence drilling of the Naingopo exploration well (also referred to as Prospect L), in the Damara Fold Belt. Demining and brush clearing activities on Prospect L were completed in March 2024. Heavy equipment and key personnel are now in the field with construction of the well pad and access roads now commencing. We are meeting with our partner NAMCOR and the Ministry of Mines and Energy this week to finalize the detailed drilling program and future drilling and subsurface data acquisition plans. We thank them for their continued support and are encouraged by the overwhelming support from the people in Namibia, particularly those in the Kavango East and Kavango West regions. We have recently met with both governors of the Kavango region, who continue to express gratitude for Recon's safe activities and community involvement. To date we have employed over 1,350 people from the region and our 36 community water wells have positively impacted the lives of over 10,000 people. We look forward to employing more people from the local communities now that our operations have once again progressed to the exploration and appraisal drilling phase."
First Damara Fold Belt Well
The Company has commenced the major civil works associated with building access roads to the well site with the primary contractor having mobilized equipment and personnel to the region. The Company is in the process of completing the drilling of the water well necessary for the completion of major civil works and drilling operations. On completion of the civil works, access road and wellsite construction, the Jarvie-1 drilling rig will be mobilized for drilling. Key services relating to the maintenance of the Jarvie-1 are all scheduled to be undertaken in May.
The Company expects to begin drilling the first Damara Fold Belt exploration well, Naingopo (Prospect L), in June 2024. The Naingopo exploration well is targeting 163 million barrels of unrisked prospective oil resources or 843 billion cubic feet of unrisked prospective natural gas resources based on the most recent prospective resources report prepared by Netherland, Sewell & Associates, Inc. ("NSAI") dated March 12, 2024, and available on the Company's website (the "NSAI Report")(1). The well is expected to drill to a depth of approximately 12,500 feet or 3,800 meters and is projected to encounter four primary reservoir intervals targeting both oil and natural gas. Drilling is expected to take approximately 90 days and will include three sets of logging operations, coring and reservoir testing.
The Company has been in contact with key drilling personnel who have agreed to rejoin the Company in preparation for the upcoming drilling program and will be mobilizing to Namibia in May and June. The Company has also awarded critical oilfield services contracts to key contractors, and drilling tools and equipment recently purchased are preparing to be shipped to Namibia this month.
Future Plans
Following the drilling of the Naingopo well, ReconAfrica is planning to drill a second Damara Fold Belt well, Prospect P, targeting 278 million barrels of unrisked prospective oil resources, or 1.5 trillion cubic feet of unrisked prospective natural gas resources, based on the NSAI Report(1). Drilling of the second Damara Fold Belt well is expected to commence in the fourth quarter of 2024, subject to the results of the Naingopo well.
Joint Venture Process
The Company has provided interested third parties with bid instructions and guidelines. Initial bids are expected this month and will be reviewed and negotiated as necessary by management. Only strong bids that enhance shareholder and stakeholder value will be considered.
Namibia International Energy Conference
ReconAfrica is a sponsor of the 2024 Namibia International Energy Conference taking place in Windhoek, Namibia from April 23 to April 25, 2024. The Company will be participating in two key industry panels with representation from President and CEO, Brian Reinsborough, and Reconnaissance Energy Namibia ("REN"), Vice President and General Manager, Robert Mwanachilenga. Additionally, Mwanyengwa Ndapewoshali Shapwanale, Director of Communication and Stakeholder Relations with REN, will be a moderator at the conference.
https://www.prnewswire.com/news-releases/reconafrica-announces-an-operations-update-joint-venture-update-and-conference-event-302120763.html
..
.
tdbowieknife
4 months ago
VANCOUVER, BC, March 14, 2024 /CNW/ - Reconnaissance Energy Africa Ltd. (the "Company" or "ReconAfrica") (TSXV: RECO) (OTCQX: RECAF) (Frankfurt: 0XD) announces an updated prospective resource estimate supported by a Prospective Resource Report (the "Report") dated March 12, 2024 (with an effective date of February 29, 2024) prepared by Netherland, Sewell & Associates, Inc. ("NSAI"), an independent qualified reserves evaluator. The Report focused solely on the Damara Fold and Thrust Belt Area, located within the Company's Petroleum Exploration Licence (PEL73), in the Kavango Basin, NE Namibia, in which the Company holds a 90% working interest. The integration of all subsurface data and new geochemical analyses in the Damara Fold Belt has resulted in an increase of oil potential.
REPORT HIGHLIGHTS(1)
Gross to the Company unrisked, prospective oil in place in identified prospects of 15.4 billion barrels
Gross to the Company unrisked, prospective oil resources in identified prospects of 3.1 billion barrels
https://www.newswire.ca/news-releases/reconafrica-announces-an-updated-independent-third-party-resource-report-for-the-damara-fold-belt-onshore-namibia-834836435.html
..
.
tdbowieknife
5 months ago
HIGHLIGHTS
Re-initiated the farmout joint venture process in December 2023 with completion expected in April 2024. The bid deadline was extended to allow participating companies time to incorporate the updated resource report on the Damara Fold Belt currently being evaluated by Netherland, Sewell & Associates ("NSAI"), and expected to be completed in March 2024.
Completed the sale of Renaissance Oil Corp., holder of the Mexican assets, for deemed gross proceeds of approximately $10.3 million (US$7.5 million), resulting in a gain on sale of $85.3 million and a reduction in net liabilities of $85.6 million.
ReconAfrica and its joint venture partner the National Petroleum Corporation of Namibia ("NAMCOR") were granted approval for the Second Renewal Exploration Period by the Ministry of Mines and Energy ("MME"), which covers the period from January 30, 2024 to January 29, 2026. As part of the approval for the Second Renewal Exploration Period, the Company requested and has been granted a relinquishment exemption and has retained 100% of the original acreage.
Received key land access approvals and completed the surveying, demining and debushing for Damara Fold Belt - Prospect L, which will be the first well to be drilled in the upcoming multi-well drilling program expected to commence in June 2024. Additional civil works are being undertaken including the construction of well site access roads, the drilling pad, and the tendering of key long lead oil services and equipment.
Streamlined the organization resulting in the reduction of general and administrative expenses in Q4 2023 by 27% compared to Q3 2023 and by 32% compared to Q4 2022.
Working capital of $8.9 million as of December 31, 2023, including $5.2 million in cash.
As disclosed on February 28, 2024, the Company entered into a global settlement agreement to resolve all previously announced U.S. and Canadian class action lawsuits. The settlement is subject to coverage by the Company's insurers and, if approved, will not have any direct financial impact on the Company.
Filed a short form shelf prospectus covering a 25 month period for the offering of securities of the Company in one or more series of issuances of common shares, warrants, subscription receipts, units or debt securities for proceeds of up to $120 million to fund the exploration and evaluation activities of the Company in the Kavango Basin.
Brian Reinsborough, President and CEO of the Company stated: "The Recon team had a productive quarter as we significantly advanced our understanding of the prospectivity of the Damara Fold Belt play, while at the same time advancing our joint venture process and preparing for drilling operations. Our technical team has increased our understanding of the oil potential of the Fold Belt play by integrating all available geochemical data and conducting additional basin modeling studies. This work is currently being evaluated by NSAI and we anticipate the revised resource report in early March. The revised report will also provide interested third party joint venture partners with an independent evaluation of the oil and natural gas potential in the Damara Fold Belt. We expect to wrap up our joint venture process in April. I recently visited Namibia where we met with multiple government agencies and ministers who expressed their appreciation and continued commitment to our project and the energy industry in Namibia. We would also like to pass along our deepest condolences to the people of Namibia on the passing of President Dr. Hage G. Geingob. While observing a period of national mourning, we were pleased to see the transition of power to be seamless and professional."
FILING UPDATE
The Company has filed its quarterly financial statements and management's discussion and analysis for the three and nine months ended December 31, 2023, on SEDAR+ at www.sedarplus.ca.
https://www.newswire.ca/news-releases/reconafrica-announces-the-filing-of-quarterly-financial-reports-870336862.html
..
.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
dounome
1 month ago
HotterMama
8 months ago
Hot Features
Premium
