BW Energy, an Oslo-listed oil and gas company, has agreed to purchase a significant stake in Reconnaissance Energy Africa Ltd (ReconAfrica), as part of the company’s equity raise, bolstering their partnership in Namibia energy projects.
According to a letter agreement, BW Energy will acquire approximately 16.8 million common shares and 16.8 million warrants for a total consideration of $16 million. Additionally, BW Energy will also receive a 20% non-operating interest in ReconAfrica's onshore Petroleum Exploration License 73 (PEL 73), with ReconAfrica providing a carry of $6.4 million for the initial work programme
The agreement also includes contingent payments from BW Energy to ReconAfrica, tied to specific field development milestones.
The deal brings two of Namibia’s active independent energy companies, with BW Energy involved in the Kudu gas project and ReconAfrica focused on exploration in the Kavango Basin. The partnership aims to accelerate exploration efforts in the region, leveraging their combined expertise and resources.
“The transaction will enable BW Energy to expand its footprint in a strategically important energy region and further our position as a leader in Namibia’s development towards energy independence,” CEO of BW Energy, Carl Krogh Arnet, said in a company statement.
“The data and insights gained through ReconAfrica’s exploration campaign will further our understanding of the geology and petroleum system in Namibia and help de-risk planned exploration and development of our Kudu license.”
The transaction is subject to regulatory approvals and is expected to close in the coming weeks.
The agreement also includes contingent payments from BW Energy to ReconAfrica, tied to specific field development milestones.
The deal brings two of Namibia’s active independent energy companies, with BW Energy involved in the Kudu gas project and ReconAfrica focused on exploration in the Kavango Basin. The partnership aims to accelerate exploration efforts in the region, leveraging their combined expertise and resources.
“The transaction will enable BW Energy to expand its footprint in a strategically important energy region and further our position as a leader in Namibia’s development towards energy independence,” CEO of BW Energy, Carl Krogh Arnet, said in a company statement.
“The data and insights gained through ReconAfrica’s exploration campaign will further our understanding of the geology and petroleum system in Namibia and help de-risk planned exploration and development of our Kudu license.”
The transaction is subject to regulatory approvals and is expected to close in the coming weeks.
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