BW Energy completes acquisition of Reconnaissance Energy securities

BW Energy Limited has acquired indirect beneficial ownership of an aggregate of 17,600,000 common share and 17,600,000 common share purchase warrants of Reconnaissance Energy Africa. BW Energy, indirectly through its wholly owned subsidiary BW Energy Services Limited, acquired the Common Shares and Warrants pursuant to the previously announced public offering by the Company of 30,944,000 units of the Company, including 2,944,000 Units issued pursuant to the partial exercise by the underwriters of their over-allotment option, completed on July 31, 2024. The Units were acquired at a purchase price of C$1.25 per Unit, for an aggregate purchase price of C$22,000,000. Each Unit is comprised of one Common Share and one Warrant, with each Warrant entitling the holder thereof to purchase one Common Shares at a price of C$1.75 at any time prior to 4:30 p.m. on the date which is 24 months following the closing of the Offering, subject to and in accordance with the terms and conditions of the warrant indenture entered into between the Company and Odyssey Trust Company, as warrant agent. Following the closing of the Offering and as of the date hereof, BW Energy, through its wholly-owned subsidiary BWESL, beneficially owns 17,600,000 Common Shares and 17,600,000 Warrants, representing approximately 6.6% of the issued and outstanding Common Shares on an undiluted basis and approximately 12.4% of the issued and outstanding Common Shares assuming the exercise in full of the Warrants acquired by BWESL pursuant to the Offering. Prior to closing of the Offering, neither BW Energy nor any of its associates or affiliates held any securities of the Company. BW Energy, through BWESL, has acquired the Common Shares and Warrants for investment purposes and strategically in connection with BW Energy Rundu Limited, a wholly owned subsidiary of BW Energy, entering into a farmout agreement with Reconnaissance Energy Namibia, a wholly-owned subsidiary of the Company, providing for the terms of a farmout transaction, including the transfer to an affiliate of BW Energy of 20% of RECON’s participating interest in the Petroleum Agreement dated January 26, 2015 between the Government of the Republic of Namibia represented by the Ministry of Mines and Energy, the National Petroleum Corporation of Namibia and RECON and the Petroleum Exploration Licence, Licence No. 0073 issued January 29, 2015.