ReconAfrica Secures C$20 Million to Fast-Track Kavango Discovery and Gabon Operations
Reconnaissance Energy Africa Ltd. has announced an overnight marketed, listed issuer financing exemption private placement offering of units of the Company at a price of C$0.95 per unit for aggregate gross proceeds of C$20 million. The offering is led by Research Capital Corporation as the lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters, including Canaccord Genuity Corp. and Haywood Securities Inc.
In connection with the offering, it is expected that certain members of management and directors of the Company and other president’s list investors will be investing in the offering. Each unit will be comprised of one common share of the Company and one-half of one common share purchase warrant of the Company. Each warrant will entitle the holder to purchase one common share at an exercise price of C$1.20 at any time up to 36 months from closing of the offering. In addition, the Company will use commercially reasonable efforts to obtain the necessary approvals to list the warrants on the TSX Venture Exchange.
For the purposes of accelerating value capture, ReconAfrica plans to expedite activity across its portfolio, which is supported by the recent success at the Kavango West 1X well and the addition of the Ngulu Block offshore Gabon, which includes the Loba discovery, to the Company’s portfolio. Net proceeds will be used for conducting an extensive production test and installing production casing at the Kavango West 1X discovery well, advancing pre-drill operations to a drill ready status at the Kavango appraisal well, re-processing seismic at the Loba discovery and exploration inventory on the Ngulu block in Gabon to advance towards a resource report and drill ready status of an appraisal well, and general corporate purposes and working capital.
Brian Reinsborough, President and CEO stated, “This equity raise will fund our 2026 capital program, which is the most comprehensive and diverse program in ReconAfrica’s history. The success-based program will fund multiple activities in parallel, including advancing our Kavango discovery toward commerciality, advancing our exploration inventory of the newly discovered Damara Fold Belt play from Namibia into Angola and progressing the Loba discovery on our Ngulu exploration block offshore Gabon to a drill ready state. The activities in Namibia aim to position the Company towards FID/commercialization of the Kavango discovery and the acceleration of first production.”
As previously announced, ReconAfrica and its partners decided to proceed directly to production testing and not to perform a drill stem test to allow for more controlled testing of isolated intervals of interest. Due to thicker than expected Huttenburg and Elandshoek hydrocarbon bearing sections, a cased hole production test was selected as the most efficient use of capital to test the deliverability of all hydrocarbon bearing intervals. As a result of the extensive section of hydrocarbons, the company plans to test up to eight intervals.
A production casing string will be installed from the surface down to a total depth of 4,260 metres. This will allow for more controlled testing of all hydrocarbon-bearing intervals and for the well to be completed as a potential producing well.
In addition, ReconAfrica will be selecting the appraisal well location, advancing permitting and conducting drill-site preparations to a drill-ready status. The appraisal well location will test the pre-drill expected resource estimate of the Kavango structure. Upon successful results of the appraisal well, the Company would be able to issue an updated resource report and book reserves on the field. This appraisal well will be a critical step toward a final investment decision (FID)/commercialization.
As a result of the success at the Kavango West 1X well, the Company plans to accelerate geochemical sampling of surface oil seeps in the MOU area in Angola and commence permitting for a potential 2D seismic program as part of the broader evaluation of the Damara Fold Belt. Crews are expected to be in the field in April 2026 to commence the sampling program.
In September of 2025, the Company signed a Production Sharing Contract (PSC) with the Republic of Gabon and its national oil and gas company, Gabon Oil Company (GOC), for the Ngulu block located in the shallow waters offshore central Gabon. The Company has been gathering all the available seismic surveys and other technical data that is available on the Ngulu lease and sourcing seismic reprocessing vendors. The Company has received 3D seismic data covering prospective areas of interest and reprocessing efforts are commencing this month. Following the reprocessing and detailed evaluation of the seismic data, the Company plans to obtain a third-party resource report outlining the significant potential of the block and progress the Loba field appraisal well to a drill-ready status. The re-interpreted seismic data, combined with the updated resource report, are critical steps for the selection of an appraisal well location on the Loba discovery.
Source: namibiaoilandgas.com
