06:13:32 EST Mon 06 Dec 2021
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Reconnaissance Energy Africa Ltd
Symbol RECO
Shares Issued 181,684,420
Close 2021-08-16 C$ 6.48
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ReconAfrica says no surprise, short-seller all wrong

2021-08-17 00:46 ET - News Release

Mr. Scot Evans reports


Reconnaissance Energy Africa Ltd. has received and reviewed a report issued yesterday by Viceroy Research, a stock market short-seller, about the company's exploratory drilling program in Namibia.

The report, like previous misinformation campaigns launched by Viceroy, contains many intentionally false allegations and displays an unfortunate lack of knowledge and understanding of geology and oil and gas exploration. It also unfairly defames government and company officials.

To correct the misinformation disseminated today by the short-seller, ReconAfrica can summarize and reaffirm the intention and recent results of the exploratory drilling program it began in Namibia, as follows:

  • ReconAfrica, in collaboration with the government of the Republic of Namibia, set out this year with a stratigraphic drilling program to prove there is an active conventional petroleum system in the Kavango sedimentary basin. The released data and analysis from the first well confirm this. In conventional oil and gas systems, petroleum migrates along faults, fractures or porous rock from a source to a reservoir. The company is confident that these data confirm it has a conventional petroleum system. No fracking is planned or permitted by the government of Namibia.
  • Based on the promising results of the first two stratigraphic test wells, ReconAfrica has initiated a government-approved, low-impact, 2-D seismic program (seismic fact sheet) designed to delineate potential hydrocarbon-bearing reservoirs to aid in the assessment of establishing commerciality in the Kavango sedimentary basin.
  • As it has stated in the past, ReconAfrica has selected and employed two reputable industry service providers to acquire and analyze its well data. The short-seller report is factually incorrect about the company's service providers and obviously did not conduct any research to support its false allegations.

ReconAfrica is committed to working in close collaboration with the government of Namibia to fully explore and understand the potential of the Kavango sedimentary basin and explore for commercial petroleum reservoirs. It also communicates frequently with regulators, investors and credible research organizations to share its findings and ensure full transparency throughout this exploratory phase.

About Reconnaissance Energy Africa Ltd.

ReconAfrica is a Canadian oil and gas company engaged in the opening of the newly discovered deep Kavango sedimentary basin, in the Kalahari Desert of northeastern Namibia and northwestern Botswana, where the company holds petroleum licences comprising approximately 8.5 million contiguous acres. In all aspects of its operations, ReconAfrica is committed to minimal disturbances in line with international best standards, and will implement environmental and social best practices in all of its project areas.

We seek Safe Harbor.

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