Reconnaissance Energy Africa Ltd. provides a factual response to National Geographic’s false and defamatory article May 21, 2021, written by environmental activists.
ReconAfrica’s Vital Operations in Namibia
We are proud that the Namibian Government has selected ReconAfrica as one of over 30 national and international energy companies it trusts to explore the country’s natural resource potential in sustainable ways.
In seeking the best path forward to address the country’s energy deficit, the Government of Namibia is wisely considering many solutions, including oil and gas exploration, geothermal and biomass assessments, as well as examining wind and solar power alternatives.
While we appreciate there may be concerns about the impact of the ReconAfrica project in Namibia, we would like to point to some important facts that should be considered when assessing the project.
National Geographic’s False Allegations
The National Geographic article published on May 21, 2021 describes a complaint to the SEC purported to have been filed on May 5, 2021. ReconAfrica has no knowledge of such a complaint and a request made to National Geographic for a copy was met with no response.
First, it is important to know that anyone can file a complaint with the SEC. There are no standards or requirements for accuracy or truth for these filings, and they should be understood as such—unproven allegations.
The following points are in direct response to allegations raised within the National Geographic article.
National Geographic Enables Short Sellers
It is a sad indictment of today’s American media that a storied publication like National Geographic, and a legendary entertainment company like Disney (NYSE:DIS which owns a 73% stake in National Geographic Partners), would facilitate activist short sellers attempting to attack ReconAfrica’s stock price. 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.
We note that the Ontario Securities Commission (OSC) and the Investment Industry Regulatory Organization of Canada (IIROC) have recently expressed their growing concern with abusive short selling and a renewed interest in curtailing this kind of destructive behaviour. We hope they (and their counterparts in the United States) take notice. These predatory tactics through ‘short and distort’ schemes and so-called ‘hit pieces’ enabling short sellers to profit without justification or consequence are highly destructive to shareholder value and are unbecoming to the credentials of regulated capital markets.
Helping Build Namibia’s Future
We sincerely believe that Namibia’s natural resource industry can be developed in an environmentally and socially responsible manner that is accountable and supports the development and delivery of much-needed economic and social benefits, as well as funding investments in local wildlife and ecological conservation.
Ultimately, the Namibian people, through their traditional authorities, elected governments, and regulatory agencies, will determine how the country will manage its natural resources.
The company is following all of the terms required under the Namibian Government’s Environmental Clearance Certificate, which itself complies fully with the provisions of the Environmental Management Act (EMA), Act No. 7 of 2007. It is also ReconAfrica’s practice to complete additional environmental and social monitoring and analyses of each site and extended surrounding areas.
Thank you for subscribing...