22:13:54 EDT Tue 16 Apr 2024
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Reconnaissance Energy Africa Ltd
Symbol RECO
Shares Issued 210,887,984
Close 2024-02-28 C$ 1.06
Market Cap C$ 223,541,263
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ReconAfrica enters global settlement deal for lawsuits

2024-02-28 16:23 ET - News Release

Mr. Brian Reinsborough reports


Subject to court approval, Reconnaissance Energy Africa Ltd. has reached a global settlement of the class action lawsuits pending against the company in the United States and Canada.

As previously disclosed in the company's Oct. 28, 2021, and Feb. 4, 2022, press releases, three purported shareholder class action complaints were filed against the company and certain of its current and former officers and directors in the United States District Court for the Eastern District of New York. One of the complaints was voluntarily dismissed and the other two were consolidated by the court as in re: Reconnaissance Energy Africa Ltd. Securities Litigation, No. 1:21-CV-06176-NM-RML (E.D.N.Y.) (the U.S. action). Subsequently, as disclosed in the company's May 26, 2023, press release, a purported shareholder class action complaint was filed against the company in the Supreme Court of British Columbia. The case is captioned Bowles v. Reconnaissance Energy Africa Ltd., No. S233808 (Can. B.C. Sup. Ct.) (the Canadian action).

Following a mediation between the plaintiffs and the defendants in both the U.S. action and the Canadian action, the parties entered into a global settlement agreement to resolve both cases. The parties have filed a motion seeking preliminary court approval of the settlement of the U.S. action and expect a similar motion to be filed as to the Canadian action shortly. If preliminary orders are granted by both courts, the plaintiffs will send notice of the settlement to potential class members. Subject to certain conditions set forth in the settlement, the parties expect to seek final approval of the settlement from both courts after the applicable notice periods. The settlement will not be final unless both courts grant final approval. The company cannot provide any assurance that the settlement will obtain the necessary approvals and satisfy the conditions and requirements necessary for it to become final. None of the defendants are admitting any liability, wrongdoing or fault as part of the settlement. The settlement, if approved, is within the company's insured limits and will not result in any direct financial impact to the company.

About Reconnaissance Energy Africa Ltd.

Reconnaissance 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 eight million contiguous acres. In all aspects of its operations Reconnaissance is committed to minimal disturbance of habitat in line with international standards and will implement environmental and social best practices in all of its project areas.

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