ReconAfrica (RECAF) CAD $9.4M Kavango Area Issues U.S. Settlement
Reconnaissance Energy Africa (RECWF) agreed to settle CAD $9.425M with investors to end claims over hiding unconventional means for energy extraction in the fragile Kavango area. They are also paying CAD $5.07M settlement to Canadian investors for the same case.
Case Details:
Between October 2020 and September 2021, investors were informed of issues with ReconAfrica's energy operations in Namibia and Botswana.
These included unconventional extraction, unlicensed drilling, illegal tests, legal violations, improper hiring, and community info lack.
In a report released on September 7, 2021, Viceroy Research criticized ReconAfrica's handling of data from their 6-2 well, calling it an attempt to spin disappointing results.
They pointed out unreadable logs, misleading interpretations of water saturation, and the need for fracking, which is illegal in Namibia.
As a result, shares dropped by 12% the same day.
Based on these events, ReconAfrica and its leaders were accused of hiding or misleading about the following details:
They planned unconventional extraction methods like fracking in the fragile Kavango area.
ReconAfrica conducted unlicensed drilling, illegal water usage, and violated laws, risking future licenses.
They also failed to inform locals and focused on the Owambo Basin instead of the claimed Kavango Basin.
ReconAfrica has now decided to end all allegations related to the Kavango area business by paying a CAD $9.425M settlement to investors. They are also paying CAD $5.07M settlement to Canadian investors for the same case.
Frequently Asked Questions
All persons and entities that purchased or otherwise acquired publicly traded common stock of Reconnaissance Energy Africa Ltd., or its predecessor Lund Enterprises Corp., on the U.S. OTC market under the ticker symbols “RECAF,” “LGDOD” and/or “LGDOF,” between February 28, 2019 and September 7, 2021, both dates inclusive.
No, if you have purchased securities within the class period, you are eligible to participate.
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