Renaissance Closes Option Agreement Participating in the Opening of the Kavango Sedimentary Basin
A private company controlled by
The Option Agreement provides Renaissance with the option to acquire a 50% working interest in the 2.45 million acre Licence, exercisable at any time within 36 months upon: (i) payment of
The Botswana Petroleum Licence
The key terms of Licence are as follows:
- A 100% working interest in all petroleum rights from surface to basement covering 2.45 million acres in northwestern
Botswana. The deep Kavango Basinoffers both large scale conventional and non-conventional play types.
- An initial 4-year exploration period, with renewals up to an additional 10 years, in accordance with the Botswana Petroleum (Exploration and Production) Act.
- Upon declaration of commercial production, the licence holder(s) have the right to enter into a 25-year production licence with a 20-year renewal period, in accordance with the Botswana Petroleum (Exploration and Production) Act.
Royalties associated with the production licence will be subject to negotiation, in accordance with the Botswana Petroleum (Exploration and Production) Act, and generally range from 3% to 10% of gross revenue from production.
By the terms of the Licence, the operator, ReconAfrica, is committed to a minimum work program of
As a result of the issuance of the Consideration Shares, the security holding percentage of
Immediately before the issuance of the Consideration Shares,
Immediately after the issuance of the Consideration Shares,
The investments in the Company were made for investment purposes by
A report respecting this acquisition will be electronically filed with the securities regulatory authorities in each jurisdiction where the Company is a reporting issuer and will be available for viewing through the Internet at the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com under the Company's profile. To obtain a copy of the report, contact
RENAISSANCE OIL CORP.
The Board of Directors
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain "forward-looking statements" within the meaning of Canadian securities legislation . Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "believes", "aims to", "plans to" or "intends to" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Such statements include, without limitation, statements with respect to the exercise of the option to acquire a 50% working interest in the Licence.
Forward-looking statements are based on the opinions, assumptions and estimates of management as of the date such statements are made, including among others, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, and that governmental and other approvals required to complete the exercise of the option will be obtained and that the Option Agreement will not be terminated. Although the assumptions made by the Company in making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking statements also involve known and unknown risks, uncertainties and other factors that may cause the actual events or results, level of activity, performance or achievements of the Company to be materially different from those predicted by such forward-looking statements, including the speculative nature of oil and gas exploration and development, fluctuating commodity prices, competitive risks, the delay or inability to complete a financing or failure to receive regulatory approvals.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are included herein, except as required by applicable securities laws.
SOURCE Renaissance Oil Corp.