Highlights

  • ReconAfrica completed a CAD 19 million upsized public offering, including full over-allotment.
  • The company will use proceeds to fund its second Damara Fold Belt well in Namibia’s Kavango Basin.
  • ReconAfrica targets 346 million barrels of unrisked oil resources with the Kavango West 1X well.

Reconnaissance Energy Africa Ltd. (TSX-V: RECO, OTCQX: RECAF), is a Canadian oil and gas exploration company focused on the development of the Kavango Basin, which straddles northeastern Namibia and southern Angola. The company holds a 90% working interest in its Namibian license and a 100% interest in its Angolan acreage. ReconAfrica’s current exploration activities target both oil and natural gas within underexplored geological formations. The company is headquartered in Vancouver, Canada, and trades on the TSX Venture Exchange and OTCQX.

The company has finalized a CAD 19 million public offering to support its upcoming drilling campaign in Namibia’s Kavango Basin. The offering was upsized and included the full exercise of the over-allotment option. Funds will be allocated toward drilling the company’s Kavango West 1X well, the second exploration test targeting the Damara Fold Belt play in the region.

The Kavango West 1X well is scheduled for spud following drill site preparation and the receipt of remaining regulatory approvals. Rig mobilization is expected to commence in late June 2025. According to a December 2024 resource report, the well targets an estimated 346 million barrels of gross unrisked prospective light and medium crude oil resources, or approximately 1,839 billion cubic feet of natural gas. ReconAfrica holds a 90% working interest in the asset.

This well follows the company's earlier drilling campaign in the Damara Fold Belt, a geological feature extending across northeastern Namibia and into southern Angola. ReconAfrica has mapped 19 prospects and four additional leads within the fold belt, which spans 11.5 million contiguous acres. The Namibian section alone is believed to hold an estimated 2.6 billion barrels of gross unrisked prospective oil resources.

The CAD 19 million offering was priced at CAD 0.50 per unit, with each unit consisting of one common share and one common share purchase warrant. Each warrant will be exercisable at a price of CAD 0.60 and remain valid until June 2027. The company anticipates that the warrants will begin trading on the TSX Venture Exchange around June 24, pending final approval.

A portion of the offering, approximately CAD 4.7 million, was subscribed by BW Energy ,ReconAfrica’s management, board members, and other existing investors. The company stated that these participants’ involvement underscores their continued engagement with ReconAfrica’s exploration strategy, particularly in assessing the hydrocarbon potential of the Damara Fold Belt.

ReconAfrica’s broader exploration strategy is focused on evaluating the untapped frontier geology of the Kavango Basin. Since its initial discovery well in 2021, the company has conducted various seismic and drilling programs across its licensed acreage. The upcoming well is expected to provide further geological data to assess the commercial potential of the fold belt system.

The company continues to conduct its operations in compliance with national regulations and has secured necessary environmental and operational clearances for its current activities. The Namibian government has previously granted ReconAfrica a license over approximately 8 million acres in the country, complemented by an additional 3.5 million acres in adjacent Angola.