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Reconnaissance Energy Africa Ltd.
Supreme Court of British Columbia (Vancouver)

Read this notice carefully as it may affect your rights

The parties have reached a Settlement and the Settlement Agreement must be approved by the Court. A hearing will be held on June 20, 2024, at 9:45 a.m. in the courthouse located 800 Smithe Street, Vancouver, British Columbia.

The value of the settlement reached for the Canadian Settlement Class is CAD $5,075,000. The Canadian Plaintiff, the Canadian Settlement Class and the Defendant have provided releases in the Settlement Agreement, specifically under the definitions “Released Canadian Plaintiff’s Claims”, “Released Plaintiff Parties”, “Released Defendants’ Claims”, and “Released Defendant Parties”.

Members of the Class means that you are an investor that purchased shares of Reconnaissance Energy Africa Ltd. (“ReconAfrica”) between May 30, 2020 and September 7, 2021, that were listed on the Toronto Stock Exchange and Frankfurt Stock Exchange.

If you wish to participate in the Settlement and receive your pro rata share of the Settlement Funds you are not required to do anything at this time. We will provide another notice and send an email to all investors that register for updates.

If you wish to opt-out and not participate in the Settlement Agreement or wish to object to the Settlement, you must do so before May 27, 2024 (“Objection Deadline”).


This shareholder class action on behalf of a class consisting of all persons and entities who purchased or otherwise acquired the securities of Reconnaissance Energy Africa Ltd. (“ReconAfrica”) between May 30, 2020 and September 7, 2021 (the “Class Period”), excluding those persons and entities that have issued their own action or a member of a certified class action in the United States and who have not otherwise opted out of said certified class action in the United States. 

Commencing June 24, 2021, research firm Viceroy Research LLC (“Viceroy”) published a report exposing the Defendant’s wrongdoing. The report detailed ReconAfrica’s unrealistic fracking intentions, and the omission of material facts concerning their data from the Company’s promotional test well announcements. Viceroy continued to publish additional reports further revealing the Defendant’s misrepresentations and weak prospects for conventional oil and gas production. Those reports included a Viceroy report dated September 7, 2021, the last day of the Class Period, pointing out significant weaknesses and omissions in the Company’s then most recently announced test results. During the Class Period, the Defendant failed to disclose to investors that: (1) ReconAfrica had not determined whether Namibia would allow fracking, which had never been done in Namibia, and which was central to the Company’s business plans; and (2) ReconAfrica possessed data from its test wells that revealed poor prospects for achieving oil and gas production that would be commercially viable. These omitted material facts undermined the Defendant’s public statements made during the Class Period, rendering them misleading. When publicly corrected, the markets’ reaction was immediate and harsh.

On September 7, 2021, when the Viceroy Report was published, ReconAfrica’s closing share price dropped from $6.50 to $5.90, or 12.8%, on record trading volume.