VANCOUVER, British Columbia, Sept. 27, 2019 (GLOBE NEWSWIRE) -- Reconnaissance Energy Africa Ltd. (the “Company”) (TSX-V: RECO) wishes to provide the following corporate updates:
Change of Auditor
The Company announces that its former auditor Ernst & Young LLP (the “Former Auditor”) has resigned, at the Former Auditor’s own initiative, effective September 27, 2019. The board of directors of the Company (the “Board”) has appointed Davidson & Company LLP (the “Successor Auditor”), who previously served as auditor to the Company prior to the reverse takeover transaction with 1163631 B.C. Ltd. (“116”), to fill the resulting vacancy in the interim and to complete an audit of the stand alone annual financial statements of Lund Enterprises Corp. (the “Prior Year Financials”) for the year ended June 30, 2019 as required under National Instrument 51-102 - Continuous Disclosure Obligations (“NI 51-102”).
The Board has appointed Davidson & Company LLP as auditors to complete the audit of the Prior Year Financials due to their familiarity with the Company and their ability to complete the audit on a timely basis. Upon completing the aforementioned audit, it is anticipated that the Company will request the Successor Auditor to resign and will appoint Deloitte LLP (Calgary) to act as auditor of the consolidated Company until the next annual meeting of the Company’s shareholders.
The change of auditor notice and associated material that is required to be filed pursuant to NI 51-102 in connection with the resignation of the Former Auditor and the appointment of the Successor Auditor will be filed on SEDAR under the Company’s profile within the prescribed time period. No “reportable event” has occurred during the period in which the Former Auditor was the Company’s auditor.
Filing of Certain Financial Statements
Further to the Company’s press release dated September 10, 2019, the Company announces that it is delayed in filing the following continuous disclosure filings (the “Filings”) for each of 116 and Reconnaissance Oil & Gas Corp. (“ROG”) by 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. As a result of the foregoing delays, the British Columbia Securities Commission (the “Commission”) has placed the Company on its “Issuers in Default” list until the Filings are completed.
On September 10, 2019, the Commission provided the Company with an administrative extension until September 30, 2019 to complete and file the Filings. In the event the Filings are not filed by 11:00 a.m. (Vancouver Time) on September 30, 2019, the Commission has advised the Company that it will issue a failure-to-file cease trade order. The Company is working diligently with Deloitte LLP (Calgary), auditor to each of 116 and ROG, to meet the revised September 30, 2019 filing 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, future changes with respect to the Company’s auditor including the anticipated future resignation of Davidson & Company LLP and the engagement of Deloitte LLP (Calgary), the anticipated timing to complete and file the Filings, the filing of the change of auditor notice and associated materials pursuant to NI 51-102, 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.
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