Reconnaissance Energy Africa ('ReconAfrica') has announced that, further to its announcement on July 16, 2024, it has entered into a definitive farm down agreement with BW Energy dated July 30, 2024, for the sale of a 20% working interest in Petroleum Exploration Licence 73 ('PEL 73'), in northeast Namibia. The terms of the agreement are as described in the press release dated July 16, 2024.
Brian Reinsborough, President and CEO commented: 'We have demonstrated a great start to our joint venture partnership with BW Energy by completing the farm down agreement in such a short period of time. This transaction maximizes cash up front for our multi-well drilling program and provides significant cash for development expenditures on success, while still retaining a high level of working interest for ReconAfrica and its shareholders. We look forward to continuing to work closely with BW Energy over the coming years.'
Completion of the transaction is expected to occur before October 31, 2024, and is subject to the Company receiving all necessary regulatory approvals, including, but not limited to, approvals from certain governmental authorities, including the Ministry of Mines and Energy ('MME') and Namcor Exploration and Production ('NAMCOR'), in Namibia, and the acceptance of the TSX Venture Exchange.
Source: ReconAfrica
