ReconAfrica Secures Enhanced Funding for Namibian Drilling Operations
Reconnaissance Energy Africa Ltd has successfully increased its public offering to C$16.5 million due to strong investor demand, positioning the company to advance its exploration activities in Namibia’s promising oil and gas sector.
The company entered into an underwriting agreement with Research Capital Corporation as lead underwriter, alongside Canaccord Genuity Corp. and Haywood Securities Inc. The syndicate has agreed to purchase 33 million units at C$0.50 per unit, with each unit comprising one common share and one warrant exercisable at C$0.60 for 24 months.
Strategic investor BW Energy Limited has committed approximately C$2 million under the offering, reaffirming its partnership with ReconAfrica. The investment includes lead orders exceeding C$4 million from BW Energy, company directors, management members, and other investors.
The primary focus of the funding will be drilling the Kavango West 1X well, designated as Prospect I. Preparatory work on the access road and drill site is nearing completion while the company awaits final permits. The rig move to the drilling location is scheduled for late June, with drilling operations to commence thereafter.
ReconAfrica has granted underwriters an over-allotment option to purchase up to 15% additional units for market stabilization purposes. The offering is expected to close during the week of June 16, 2025, subject to regulatory approvals and exchange acceptance.
Source: Namibia Oil and Gas
