Reconnaissance Energy Africa Ltd. (TSXV: RECO) has closed a bought-deal public offering raising gross proceeds of C$21,850,506, including the full exercise of the over-allotment option. The Calgary-based oil and gas explorer issued 29,932,200 units at C$0.73 each, with proceeds earmarked for a horizontal sidetrack and production testing program targeting the Huttenberg and Elandshoek formations at the Kavango West 1X well. The successful upsized offering and full exercise of the over-allotment option may signal underwriter confidence in the program ahead.

Key Points

  • Reconnaissance Energy Africa Ltd. (TSXV: RECO, OTCQX: RECAF, Frankfurt: 0XD, NSX: REC)
  • Closed a bought-deal public offering of 29,932,200 units at C$0.73 per unit for gross proceeds of C$21,850,506, including full exercise of the over-allotment option
  • Each unit includes one common share and one-half warrant; full warrants exercise at C$0.93 until September 10, 2029, with warrants expected to trade as RECO.WT.D
  • Investors will be watching progress on the open-hole horizontal sidetrack and production testing program targeting the Huttenberg and Elandshoek formations

Unit Structure and Warrant Terms for the RECO Offering

Each unit sold in the offering consists of one common share and one-half of one common share purchase warrant, meaning two units are required to obtain one full warrant. Each whole warrant entitles the holder to purchase one additional common share at C$0.93 until September 10, 2029. The warrants are expected to commence trading on the TSX Venture Exchange under the symbol RECO.WT.D within the week following closing, subject to final TSXV acceptance. The offering was led by Research Capital Corporation as sole bookrunner, alongside syndicate members Canaccord Genuity Corp. and ATB Cormark Capital Markets.

Underwriter Compensation and Commission Structure

In connection with the offering, ReconAfrica paid the underwriting syndicate an aggregate cash commission of C$1,282,910.76 and issued 1,757,412 broker warrants exercisable at C$0.73 per share until September 10, 2029. The underwriters also received an aggregate advisory fee of C$15,000 and 6,000 advisory warrants on the same terms as the broker warrants. The offering was completed by way of a prospectus supplement to the company's short form base shelf prospectus dated April 13, 2026, with securities regulatory authorities across Canadian provinces except Québec.

Kavango West 1X Horizontal Sidetrack Program and Use of Proceeds

Net proceeds from the offering will primarily fund an open-hole horizontal sidetrack and production testing program at the Kavango West 1X well, targeting the primary reservoir in the Huttenberg formation and the secondary reservoir in the Elandshoek formation. Remaining proceeds will support general corporate purposes and working capital. ReconAfrica holds petroleum licences covering approximately 13 million contiguous acres across northeastern Namibia, southeastern Angola, and northwestern Botswana, and also operates the Ngulu block offshore Gabon, which includes the Loba oil field discovery.