ReconAfrica Raises $19 Million to Advance Namibian Exploration Program
Reconnaissance Energy Africa has successfully completed an upsized public offering, raising approximately $19 million in gross proceeds to fund its ambitious exploration activities in Namibia. The offering, priced at $0.50 per unit and including the full exercise of the over-allotment option, was led by Research Capital Corporation with participation from Canaccord Genuity Corp. and Haywood Securities Inc.
The funding will primarily support the drilling of the Kavango West 1X exploration well, representing the second test in the expansive Damara Fold Belt play. The prospect, identified through modern 2D seismic data, extends over 20 kilometers long by 5 kilometers wide and is expected to penetrate a thick Otavi carbonate reservoir section.
The Kavango West 1X well will be drilled to a planned total depth of approximately 3,800 meters and is targeting significant prospective resources. According to the most recent report by Netherland, Sewell & Associates, the prospect contains an estimated 346 million barrels of gross unrisked prospective light/medium crude oil resources, or alternatively 1,839 billion cubic feet of gross unrisked prospective natural gas resources.
The exploration program builds on ReconAfrica’s extensive acreage position across the Damara Fold Belt trend, where the company has identified 19 prospects and 4 leads on the Namibian side of the play. The company recently expanded its footprint by entering a Memorandum of Understanding with Angola’s National Agency for Petroleum, Gas and Biofuels for a joint exploration project covering 5.2 million contiguous acres in southeastern Angola.
BW Energy Limited participated in the offering for approximately $4.7 million, with the units subject to a six-month lock-up agreement. The company’s rig mobilization to the Kavango West 1X location is scheduled for late June, with drilling to begin thereafter.
Source: NamibiaOilAndGas.com
