Reconnaissance Energy Africa (ReconAfrica) is raising about N$174.3 million (C$15 million) to fund a horizontal sidetrack and production testing programme at its Kavango West 1X well in northeastern Namibia.
The Canadian-listed oil and gas explorer said it had entered into a bought-deal public offering with Research Capital Corporation, which is acting as sole bookrunner and lead underwriter.
Under the transaction, the underwriters have agreed to purchase 20.55 million units at C$0.73 per unit, generating gross proceeds of about C$15 million.
ReconAfrica said the proceeds will primarily fund an open-hole horizontal sidetrack and production testing programme targeting the Huttenberg Formation, its primary reservoir target, and potentially the secondary Elandshoek Formation.
“The net proceeds from the Offering will be used for conducting an open-hole horizontal sidetrack and production testing program, targeting the primary reservoir in the Huttenberg formation and/or the secondary reservoir in the Elandshoek formation, and for general corporate purposes and working capital,” the company said.
Each unit issued under the offering will comprise one common share and half of a common share purchase warrant. Each full warrant will entitle the holder to acquire an additional common share at C$0.93 for a period of 36 months following the closing of the offering.
ReconAfrica has also granted the underwriters an option to increase the offering by up to 15% to cover potential over-allotments and support market stabilisation.
If exercised in full, the option could increase the amount raised beyond the initial C$15 million.
The transaction is expected to close on or about 10 September 2026, subject to regulatory approvals and acceptance by the TSX Venture Exchange.
The planned sidetrack and production testing programme is aimed at further evaluating the reservoir potential at Kavango West 1X as ReconAfrica advances exploration activities in Namibia.
ReconAfrica is exploring for oil and gas in the Damara Fold Belt and Kavango Rift Basin across northeastern Namibia and neighbouring parts of Angola and Botswana, where it has access to approximately 13 million contiguous acres.
