AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
- Reconnaissance Energy Africa Ltd. completes farm-down agreement with BW Energy Limited.
- The sale includes a 20% working interest in Petroleum Exploration Licence 73 in northeast Namibia.
- The transaction has received approval from the Namibian Ministry of Mines and Energy and Namcor Exploration and Production.
Reconnaissance Energy Africa Ltd. (TSX:RECO) has announced the successful completion of its farm-down agreement with BW Energy Limited. The transaction involves the sale of a 20% working interest in Petroleum Exploration Licence 73 (PEL 73), located in northeast Namibia. The Namibian Ministry of Mines and Energy (MME) and Namcor Exploration and Production (Pty) Ltd (NAMCOR) have given their approval for the agreement.
Details of the Working Interest in PEL 73
As a result of the agreement, the working interests in PEL 73 have been restructured. Reconnaissance Energy now holds a significant portion, while BW Energy assumes a new stake in the project. The updated structure reflects the collaboration between the two companies and the regulatory approval that has enabled this new phase in the development of the project.
Significance of the Transaction
This farm-down agreement marks a crucial step in Reconnaissance Energy Africa's ongoing operations in Namibia. The transaction further solidifies the company's commitment to advancing exploration and development in the region. With the new ownership structure in place, both ReconAfrica and BW Energy will continue to focus on the exploration and production aspects of PEL 73.
Approval from Namibian Authorities
The successful completion of the agreement was contingent upon receiving the necessary regulatory approvals. Both the Namibian Ministry of Mines and Energy and NAMCOR played a key role in facilitating the transaction. Their approval paves the way for continued operations and investment in the PEL 73 block.
Next Steps for the Companies
Following the completion of the agreement and the associated approvals, both ReconAfrica and BW Energy are poised to move forward with their respective roles in the development of the PEL 73 block. The two companies will continue their work in the area, with a focus on expanding the project and achieving key milestones in the coming phases. The updated working interest structure is expected to support the future exploration and development goals of the project.
