April 4, 2024 Cases

Reconnaissance Energy Africa Ltd. offers to settle shareholder class action

(March 26, 2024) We are pleased to announce that the Supreme Court of British Columbia (the “Court”) has scheduled a hearing to be held on June 20, 2024 the “Settlement Approval Hearing”) to approve a settlement among in Catherine Bowles v. Reconnaissance Energy Africa Ltd., bearing Court File No. VLC-S-S-233808 (the “Action” and “ReconAfrica”).


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.  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. The pleading may be read here. ReconAfrica denies all wrongdoing.

The Settlement

After mediation ReconAfrica has agreed to pay the shareholders of the Canadian class action 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”. More information about the Settlement Agreement may be viewed here.

The Class

If you acquired common shares of ReconAfrica listed on the Toronto Stock Exchange or Frankfurt Stock Exchange, on or after May 30, 2020, and held some or all of those shares until at least September 7, 2021, you will likely be entitled to participate in the settlement after the Court has approved it.

The Opt-Outs and Objections

At the Settlement Approval Hearing, the Court will consider any objections to the proposed Settlement by the Class Members if the objections are submitted in writing before May 27, 2024 in the manner described in the Notice of Proposed Settlement of the ReconAfrica Securities Class Action at [email protected].