Mr. J. Jay Park reports
RECONNAISSANCE ENERGY AFRICA LTD. ANNOUNCES DELAYED FILING OF FINANCIAL STATEMENTS
Reconnaissance Energy Africa Ltd. has provided an update. The following continuous disclosure filings for each of 1163631 B.C. Ltd. and Reconnaissance Oil & Gas Corp. (ROG) will be delayed beyond the filing deadline of Sept. 19, 2019: (i) audited annual financial statements for the year ended Dec. 31, 2018; (ii) interim financial statements for the three months ended March 31, 2019; and (iii) interim financial statements for the six months ended June 30, 2019.
On Aug. 30, 2019, the company completed a reverse takeover transaction among 116, ROG and the company together with a non-brokered private placement financing for gross proceeds of approximately $3.4-million. Pursuant to National Instrument 51-102 -- Continuous Disclosure Obligations, the company is required to file the filings within 20 days following the completion of the transaction.
The reason for the delayed filing beyond the deadline set out by NI 51-102 is that, prior to the completion of the concurrent financing, the company required additional working capital to complete an audit of the 116 and ROG annual financial statements for the year ended Dec. 31, 2018. Furthermore, the company is in the process of transitioning from its present auditor to Deloitte LLP (Calgary). As a result of the closing of the concurrent financing, the company now has the working capital available to complete an audit and is currently in the process of engaging Deloitte LLP (Calgary) to act as its auditor on a going-forward basis (subject to the completion of industry-standard due diligence).
The British Columbia Securities Commission has provided the company with an administrative extension until Sept. 30, 2019, to complete and file the filings. In connection with the granting of such an administrative extension, the commission has advised the company that it will issue a failure-to-file cease trade order in the event the filings are not filed by 11 a.m. Vancouver time on Sept. 30, 2019. The company intends to work diligently with its new auditor to complete and file the filings in an expedited manner prior to the Sept. 30 deadline.
About Reconnaissance Energy Africa Ltd.
Reconnaissance Energy Africa is a junior oil and gas company engaged in the development of the newly discovered Kavango sedimentary basin in northeastern Namibia where the company holds a 90-per-cent working interest in petroleum licences comprising approximately 6.3 million contiguous acres.
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