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- Oilman Jim's Letter - 4 April 2024
Oilman Jim's Letter - 4 April 2024
Interesting and important news: RECO.V RECAF UJO.L UJOGF
Reconnaissance Energy Africa (RECO.V RECAF 0XD.F) announced that it has completed its bought deal public offering for aggregate gross proceeds of C$17,250,035, including the full exercise of the over-allotment option. A total of 19,166,705 units were sold at a price of C$0.90 per unit, each unit consisting of one common share and one common share purchase warrant exercisable at C$1.15 until April 3, 2026. In the event that the moving volume weighted average trading price of the shares is equal to or greater than C$2.50 for any 20 consecutive trading days, the company may accelerate the expiry date of the warrants, effectively forcing exercise and raising up to a further C$22,041,710. The net proceeds from the offering are expected to be used for drilling activities, long lead items for drilling, road and location construction, and working capital. The project is potentially massive, being 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 licenses comprising ~8 million contiguous acres.
Union Jack Oil (UJO.L UJOGF) announced that the company’s ordinary shares have been approved to trade on the OTCQB Venture Market in the United States and will commence trading at market open today, providing trading access for investors based in the US and increased liquidity due to a now broader geographic pool of potential investors. Harbor Access, an established North American based investor relations group has been appointed to represent Union Jack, to assist with increasing visibility and facilitating a better understanding of the company. Obtaining a trading facility on the OTCQB is an important step forward at a time where the company is actively conducting an ongoing drilling program in Oklahoma and building a portfolio of cash generative mineral royalties focused on the Permian Basin in Texas and the Bakken Shale in North Dakota. Per Harbour Access, proven producing assets in the UK and an impressive mineral royalties portfolio and drilling campaign within the US will resonate with North American investors leading to a successful IR program.