Reconnaissance Energy Africa Ltd (ReconAfrica) has raised N$254.34 million (C$21.85 million) through an upsized bought-deal public offering to fund drilling and production testing activities, including its exploration programme in northeastern Namibia.
The Canadian-listed oil and gas company issued 29.93 million units at N$8.50 (C$0.73) each, including the full exercise of an over-allotment option.
Each unit comprises one common share and half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at N$10.83 (C$0.93) until 10 September 2029.
“ReconAfrica is pleased to announce that it has completed its previously announced and upsized bought-deal public offering of 29,932,200 units of the company at a price of C$0.73 per unit for aggregate gross proceeds to the company of C$21,850,506, including the full exercise of the over-allotment option,” the company said.
ReconAfrica said the net proceeds will be used to conduct an open-hole horizontal sidetrack and production testing programme targeting the primary reservoir in the Huttenberg formation and/or the secondary reservoir in the Elandshoek formation.
Part of the proceeds will also be used for general corporate purposes and working capital.
The offering was led by Research Capital Corporation as lead underwriter and sole bookrunner, together with Canaccord Genuity Corp. and ATB Cormark Capital Markets.
ReconAfrica paid the underwriters an aggregate cash commission of N$14.93 million (C$1.28 million) and issued 1.76 million broker warrants.
The underwriters also received an advisory fee of N$174,600 (C$15,000) and 6,000 advisory warrants on the same terms as the broker warrants.
Each broker warrant entitles the holder to acquire one common share at N$8.50 (C$0.73) until 10 September 2029.
ReconAfrica is exploring the Damara Fold Belt and Kavango Rift Basin across northeastern Namibia, southeastern Angola and northwestern Botswana, where it holds petroleum licences and access to approximately 13 million contiguous acres.
The company also operates the 1,214-square-kilometre Ngulu block in shallow waters offshore central Gabon. The block includes the Loba oil discovery and a portfolio of pre-salt and post-salt exploration prospects.
