Monday, July 15, 2024

Botswana oil explorer sued for scamming investors

Claims that the Okavango Basin oil find is a huge investment scam and the Canadian oil and gas company company behind the exploration, ReconAfrica is a pack of penny-stock peddlers who falsified their findings to inflate their stock prices will be tested in an American court of law.

A class action lawsuit was this week filed against Reconnaissance Energy Africa Ltd (ReconAfrica) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired ReconAfrica shares between February 28, 2019 and September 7, 2021.

This class action seeks to recover damages against ReconAfrica for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.

The complaint alleges that throughout the Class Period, ReconAfrica made materially false and/or misleading statements and/or failed to disclose that: (1) ReconAfrica’s plan for using unconventional means for energy extraction (including fracking) in the fragile Kavango area; (2) that ReconAfrica would begin unlicensed drilling tests; (3) that ReconAfrica would illegally use water for well testing; (4) that ReconAfrica would illegally store used water in unlined pools; (5) that ReconAfrica would skirt Namibian law and hire an inadequate and inappropriate consultant; (6) that, as a result, ReconAfrica risked future well, drilling, and water-related licenses in Namibia and Botswana; (7) that, as opposed to its representations, ReconAfrica did not reach out nor provide adequate information (including in relevant local languages) through accessible means to those to be impacted by its testing and potential energy extraction; (8) that ReconAfrica’s interests are in the Owambo Basin, not the so-called Kavango Basin; (9) that ReconAfrica has continuously engaged in stock pumping; and (10) as a result of the foregoing, defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.


Read this week's paper