Reconnaissance Energy Africa Ltd has announced a C$20 million, or about N$237 million, overnight marketed private placement to fund production testing, appraisal drilling and exploration activities across its portfolio in Namibia, Angola and Gabon.
The offering consists of units priced at C$0.95 each, with gross proceeds targeted at C$20 million. The transaction is being led by Research Capital Corporation, with Canaccord Genuity Corp and Haywood Securities Inc participating as underwriters.
“This equity raise will fund our 2026 capital programme, which is the most comprehensive and diverse programme in ReconAfrica’s history, allowing us to advance multiple activities in parallel across our portfolio,” said Brian Reinsborough, President and Chief Executive Officer of ReconAfrica.
Each unit comprises one common share and one-half of one common share purchase warrant, with each full warrant exercisable at C$1.20 for a period of 36 months from closing. The company intends to seek approval to list the warrants on the TSX Venture Exchange.
Net proceeds from the offering will be directed towards production testing and the installation of production casing at the Kavango West 1X discovery well, advancing pre-drill activities at the Kavango appraisal well, reprocessing seismic data at the Loba discovery on the Ngulu block offshore Gabon, and for general corporate purposes.
“The success-based programme is designed to move the Kavango discovery towards commerciality, accelerate first production and progress the Loba discovery to a drill-ready state,” Reinsborough said.
At the Kavango West 1X well in Namibia, ReconAfrica and its partners have opted to proceed directly to production testing rather than conducting a drill stem test, following the identification of thicker-than-expected hydrocarbon-bearing sections.
A production casing string will be installed to a total depth of 4,260 metres, enabling controlled testing of up to eight hydrocarbon-bearing intervals and allowing the well to be completed as a potential producing asset.
“These steps are intended to efficiently test deliverability across all identified intervals and position the well for potential production,” Reinsborough said.
The company will also select an appraisal well location at the Kavango discovery, advance permitting and complete drill-site preparations. The appraisal well is expected to test the pre-drill resource estimate of the structure and support an updated resource report if successful.
In Angola, ReconAfrica plans to accelerate geochemical sampling of surface oil seeps within the memorandum of understanding area and begin permitting for a potential 2D seismic programme, with fieldwork expected to commence in April 2026.
“In Angola and Gabon, our focus is on advancing early-stage opportunities to a point where they can materially contribute to future growth,” Reinsborough said.
On the Ngulu block offshore Gabon, the company has begun reprocessing 3D seismic data over prospective areas of interest. This work is intended to support a third-party resource report and advance the Loba field appraisal well to a drill-ready status.
The offering includes an over-allotment option of up to 15% of the total units issued. Closing is expected on or about 19 January 2026, subject to regulatory approvals, with the proceeds intended to support ReconAfrica’s multi-pronged capital programme in 2026.
