What’s going on with RECAF?
Reconnaissance Energy Africa Ltd. (RECAF) stock was down 2.76% after the Canadian oil and gas company responded to a negative National Geographic article published on May 21 about ReconAfrica’s Namibia operations, arguing that it's a 'hit piece' riddled with false allegations to benefit short sellers. Shares of RECAF were trading at $6.77 per share on Monday morning.
In defending itself against allegations made in an article it says was written by environmental activists to enable short sellers, ReconAfrica denied that an alleged complaint was filed with the SEC on May 5. “ReconAfrica has no knowledge of such a complaint and a request made to National Geographic for a copy was met with no response,” the company said.
What does this mean for ReconAfrica?
The Canadian oil and gas company holds petroleum licenses and is operating at the newly discovered deep Kavango Sedimentary Basin, in the Kalahari Desert of northeastern Namibia and northwestern Botswana, an area cover approximately 8.5 million contiguous acres.
“It is a sad indictment of today's American media that a storied publication like National Geographic, and a legendary entertainment company like Disney (which owns a 73% stake in National Geographic Partners), would facilitate activist short sellers attempting to attack ReconAfrica's stock price,” the company said in a statement.
“Rather than reporting on the true facts about the important work ReconAfrica is performing for the people of Namibia, National Geographic rushed to print a false and defamatory article, purposefully avoiding the detailed information ReconAfrica was willing and preparing to provide, and deliberately concealed their involvement with an anonymous source that reportedly filed an SEC complaint—characterizing this source as a "whistleblower." This all occurred immediately after filed short positions in ReconAfrica's stock increased significantly, more than tripling in volume. National Geographic has enabled these short sellers to potentially line their pockets at the expense of the Namibian people and investors.”
RECAF has an Overall Score of 56. Find out what this means to you and get the rest of the rankings on RECAF!
Reconnaissance Energy Africa Ltd, formerly Lund Enterprises Corp is a junior oil and gas company engaged in the exploration and development of oil and gas in Namibia. It holds an approximately 90% interest in a petroleum exploration licence in northeast Namibia which covers the entire Kavango sedimentary basin. The Kavango Basin offers both large scale conventional and non-conventional play types.
