BW Vitality has signed a letter settlement with Reconnaissance Vitality Africa Ltd (ReconAfrica) to amass roughly 16.8 million frequent shares and 16.8 million warrants for a complete consideration of $16 million in ReconAfrica’s introduced fairness elevate.
By collaborating within the fairness elevate, BW Vitality may even obtain a 20 % non-operating curiosity within the onshore Petroleum Exploration License 73 (PEL 73), the place ReconAfrica will present BW Vitality with a carry of $6.4 million primarily based on the supposed preliminary work program.
BW Vitality stated in a information launch it has additionally dedicated to sure contingent funds to ReconAfrica primarily based on particular area growth milestones.
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PEL 73 is positioned in northeast Namibia, masking an space of roughly 9784 sq. miles (25,341 sq. kilometers). Two exploration wells are deliberate to be drilled within the Damara Fold Belt Basin within the second half of 2024, in response to the discharge.
The wells are focusing on a mixed unrisked useful resource potential of 489 million barrels of oil primarily based on the latest potential useful resource report by Netherland, Sewell & Associates Inc. (NSAI). After the 2 preliminary exploration wells, the partnership plans a 3D seismic survey of the Kavango Rift Basin within the second half of 2025, which can lead to two further exploration wells.
“The transaction will allow BW Vitality to develop its footprint in a strategically vital vitality area and additional our place as a pacesetter in Namibia’s growth in the direction of vitality independence,” BW Vitality CEO Carl Krogh Arnet stated. “The info and insights gained by ReconAfrica’s exploration marketing campaign will additional our understanding of the geology and petroleum system in Namibia and assist de-risk deliberate [the] exploration and growth of our Kudu license”.
The ReconAfrica frequent shares are priced at CAD 1.30 per share. The warrants have a validity of 24 months and are priced at CAD 1.70 per warrant. If particular milestones are met, BW Vitality has agreed to additional contingent funds to ReconAfrica of as much as $125 million.
The completion of the transaction is topic to the events getting into right into a definitive settlement and the fulfilment of customary circumstances precedents, BW Vitality famous.
Earlier within the month Vancouver-based ReconAfrica and its three way partnership associate NAMCOR, the state oil firm of Namibia, spudded the Naingopo exploration effectively on PEL 73, onshore northeast Namibia.
ReconAfrica stated in an earlier information launch that it spud the Naingopo exploration effectively within the Damara Fold Belt onshore PEL 73 on July 7.
The effectively will likely be drilled to a deliberate complete depth of roughly 12,500 toes (3,800 meters), and is predicted to come across a number of reservoir intervals focusing on each oil and pure gasoline, in response to the discharge. The Naingopo effectively is focusing on 163 million barrels of unrisked potential oil sources or 843 billion cubic toes of unrisked potential pure gasoline sources, web to ReconAfrica.
ReconAfrica is a Canadian oil and gasoline firm engaged within the opening of the newly found deep Kavango Sedimentary Basin within the Kalahari Desert of northeastern Namibia and northwestern Botswana, the place the agency holds petroleum licenses comprising roughly eight million contiguous acres.
In keeping with the corporate’s web site, the agency has been granted licenses by Namibia and Botswana to discover and ensure the presence of hydrocarbon sources.
To contact the creator, e mail rocky.teodoro@rigzone.com
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