Reconnaissance Energy Africa Ltd. (TSXV: RECO) has announced an upsized bought-deal public offering totalling C$19,000,440, increasing the size of a previously announced financing. The offering will fund a horizontal sidetrack and production testing program targeting the Huttenberg and Elandshoek formations at the Kavango West-1X well in Namibia. Lead underwriter Research Capital Corporation is joined by Canaccord Genuity Corp. and ATB Cormark Capital Markets in the syndicate. Closing is expected on or about September 10, 2026, subject to regulatory approvals.

Key Points

  • Reconnaissance Energy Africa Ltd. (TSXV: RECO | OTCQX: RECAF | FSE: 0XD | NSX: REC)
  • Bought-deal offering upsized to C$19,000,440 via 26,028,000 units priced at C$0.73 each
  • Each unit includes one common share and one-half warrant; full warrants exercisable at C$0.93 for 36 months from closing
  • Investors will be watching closing confirmation and regulatory acceptance from the TSX Venture Exchange

Offering Structure and Underwriter Syndicate

ReconAfrica has amended its agreement with Research Capital Corporation, acting as sole bookrunner and lead underwriter, alongside Canaccord Genuity Corp. and ATB Cormark Capital Markets. The syndicate will purchase 26,028,000 units at C$0.73 per unit on a bought-deal basis. Each unit comprises one common share and one-half of one common share purchase warrant, with whole warrants carrying an exercise price of C$0.93 and a 36-month term from closing. The company has also indicated it will use commercially reasonable efforts to list the warrants on the TSX Venture Exchange.

Over-Allotment Option Adds Potential Upside to Gross Proceeds

The underwriters have been granted an over-allotment option permitting the offering size to be increased by up to 15% of the total units issued. This option may be exercised at any time within 30 days following closing, covering over-allotments and supporting market stabilisation. If fully exercised, gross proceeds would increase beyond the announced C$19,000,440 figure, though the company did not disclose a specific maximum figure for the fully diluted over-allotment scenario in the announcement.

Kavango West-1X Horizontal Sidetrack as the Primary Use of Proceeds

Net proceeds from the offering are directed toward an open-hole horizontal sidetrack and production testing program at the Kavango West-1X well, targeting the primary Huttenberg formation reservoir and, secondarily, the Elandshoek formation. Remaining funds will support general corporate purposes and working capital. ReconAfrica holds petroleum licences across approximately 13 million contiguous acres spanning northeastern Namibia, southeastern Angola, and northwestern Botswana, with additional operations on the Ngulu block offshore Gabon.