Reconnaissance Energy Africa Ltd. Announces Delayed Filing of Financial Statements

VANCOUVER, British Columbia , Sept. 10, 2019 (GLOBE NEWSWIRE) -- Reconnaissance Energy Africa Ltd. (the “Company”) (TSX-V: RECO) announces that the following continuous disclosure filings (the “Filings”) for each of 1163631 B.C. Ltd. (“116”) and Reconnaissance Oil & Gas Corp. (“ROG”) will be delayed beyond the filing deadline of September 19, 2019: (i) audited annual financial statements for the year ended December 31, 2018; (ii) interim financial statements for the three months ended March 31, 2019; and (iii) interim financial statements for the six months ended June 30, 2019.

On August 30, 2019, the Company completed a reverse takeover transaction among 116, ROG and the Company (the “Transaction”) together with a non-brokered private placement financing for gross proceeds of approximately $3.4 million (the “Concurrent Financing”). Pursuant to National Instrument 51-102 – Continuous Disclosure Obligations (“NI 51-102”), the Company is required to file the Filings within 20 days following the completion of the Transaction.

The reason for the delayed filing beyond the deadline set out by NI 51-102 is that, prior to the completion of the Concurrent Financing, the Company required additional  working capital to complete an audit of the 116 and ROG annual financial statements for the year ended December 31, 2018. Furthermore, the Company is in the process of transitioning from its present auditor to Deloitte LLP (Calgary). As a result of the closing of the Concurrent Financing, the Company now has the working capital available to complete an audit and is currently in the process of engaging Deloitte LLP (Calgary) to act as its auditor on a going forward basis (subject to the completion of industry standard due diligence).

The British Columbia Securities Commission (the “Commission”) has provided the Company with an administrative extension until September 30, 2019 to complete and file the Filings. In connection with the granting of such an administrative extension, the Commission has advised the Company that it will issue a failure-to-file cease trade order in the event the Filings are not filed by 11:00 a.m. (Vancouver time) on September 30, 2019. The Company intends to work diligently with its new auditor to complete and file the Filings in an expedited manner prior to the September 30^th deadline.

About Reconnaissance Energy Africa Ltd.

Reconnaissance Energy Africa Ltd. is a junior oil and gas company engaged in the  development of the newly discovered Kavango Sedimentary Basin in northeast Namibia where the Company holds a 90% working interest in petroleum  licences  comprising  approximately 6.3 million contiguous acres.

For Further Information Contact:

Reconnaissance Energy Africa Ltd.
J. Jay Park, QC
Chief Executive Officer
Tel: +44 7748 354 555
Email: admin@reconafrica.com

Cautionary Statement Regarding Forward-Looking Information

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation that are not current or historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan”, “except”, “project”, “intend”, “believe”, “anticipate”, “could”, “should”, “seek”, “estimate” and other similar words or statements that certain events or conditions “may” or “will” occur. Forward-looking statements in this news release include, but are not limited to, statements with respect to the Company’s objectives, goals or future plans, the engagement of Deloitte LLP (Calgary) as the Company’s auditor, the anticipated timing to complete and file the Filings, and the potential issuance of a failure-to-file cease trade order and any conditions or restrictions imposed on the trading of the Company’s shares in connection therewith. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risk factors set out in the Company’s public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release and should not be relied upon as of any other date, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

NEITHER THE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE EXCHANGE) ACCEPTS RESPONSIBILITY OF THE ADEQUACY OR ACCURACY OF THIS RELEASE.