Reconnaissance Energy Africa Boosts Funding to $18 Million Amid Strong Investor Demand
Reconnaissance Energy Africa Ltd. has increased its underwritten offering to C$18 million due to robust investor interest, as the company advances operations on its Ngulu Block offshore Gabon and provides updates on its Kavango West 1X exploration well. The expanded funding will support geological and geophysical studies, seismic data reprocessing, and development of the Loba Complex oil discovery.
In a separate announcement, the Canadian oil and gas company revealed an overnight marketed public offering priced at C$0.60 per unit to raise gross proceeds of C$10 million. Each financing unit comprises one common share plus one warrant, with warrants allowing holders to purchase additional shares at C$0.72 within 24 months of closing.
The company expects management, directors, and other investors to contribute approximately C$3 million to the offering, with closing anticipated around September 29, 2025. Net proceeds will fund appraisal and exploration activities related to the Ngulu Production Sharing Contract offshore Gabon.
“Our drilling operations in Namibia on the highly anticipated Kavango West 1X well are proceeding on schedule,” said CEO Brian Reinsborough. “We are on track to reach total depth of around 3,800 meters and are expecting to release results in Q4 2025.”
The Kavango West 1X exploration well, which began drilling on July 31, 2025, has reached approximately 2,300 meters depth. The company’s joint venture in Gabon positions it as an offshore operator with potential near-term production and exploration opportunities, though financial analysts note ongoing concerns about declining revenues and negative cash flows despite recent positive corporate developments.
Sources: tipranks.com, proactiveinvestors.com
