Reconnaissance Energy Africa Ltd. (ReconAfrica) has launched a N$130.5 million (C$10 million) public offering to finance the drilling of its Kavango West 1X exploration well in north-eastern Namibia, as the company ramps up its efforts in the Damara Fold Belt play within the Kavango Basin.
The offering, led by Research Capital Corporation as underwriter alongside Canaccord Genuity Corp. and Haywood Securities Inc., will see units priced at N$6.52 (C$0.50) each. Each unit consists of one common share and one warrant, enabling the holder to purchase an additional share at N$7.83 (C$0.60) within two years.
ReconAfrica’s President and CEO, Brian Reinsborough, said the company was moving forward with one of its most promising drilling targets.
“We are excited to spud one of the Company’s largest and most attractive prospects, Kavango West 1X. The results of the Naingopo exploration well announced in January 2025 increased our confidence in the potential for this well,” he said.
He added that ReconAfrica’s teams “remain very engaged with local communities and authorities to ensure a safe and efficient operation of this well.”
As part of the capital raise, strategic investor BW Energy Limited has committed N$26.1 million (C$2 million), boosting its shareholding in ReconAfrica from 6.5% to 7.6%.
The shares acquired will be subject to a six-month lock-up period.
“Our technical and operational teams at BW Energy are delighted to be participating in the high potential Kavango West 1X exploration well. BW Energy is well positioned in this strategically important energy region and further our position as a leader in Namibia’s development towards energy independence.”, BW Energy CEO Carl K. Arnet said, commenting on the move.
He added that the insights gained from ReconAfrica’s drilling would also support BW Energy’s work on the Kudu gas project by helping “de-risk planned exploration and development.”
The Kavango West 1X well is targeting a large fold structure stretching 20 km in length and 5 km in width.
It aims to drill to a depth of around 3,800 metres to reach the Otavi carbonate reservoir. According to the company’s latest resource estimates, the well could hold up to 346 million barrels of gross unrisked prospective light or medium crude oil, or roughly 1,839 billion cubic feet of natural gas.
In a related development, ReconAfrica has signed a Memorandum of Understanding with Angola’s national petroleum agency (ANPG) to collaborate on exploration in the cross-border Etosha-Okavango Basin.
The agreement adds another 5.2 million acres to ReconAfrica’s current 6.3 million-acre exploration portfolio in Namibia.
