Reconnaissance Energy Africa Ltd says the mobilisation of a drilling rig for the Kavango West 1X well is already underway, following the successful raise of approximately C$19 million (about N$249 million) to support its exploration programme in Namibia.
The company confirmed that preparatory work at the drill site is progressing, with the rig expected to arrive later this month and drilling scheduled to begin shortly afterwards.
The funds were secured through an underwritten public offering led by Research Capital Corporation, with participation from Canaccord Genuity Corp. and Haywood Securities Inc.
BW Energy Limited, along with ReconAfrica’s directors, management, and other investors, contributed about C$4.7 million (approximately N$61.5 million) to the raise.
BW Energy’s shares are subject to a six-month lock-up period.
Each unit in the offering included one common share and one warrant, with the warrants allowing investors to buy additional shares at C$0.60 (around N$7.85) until June 2027.
ReconAfrica said the warrants are expected to start trading on the TSX Venture Exchange on or about 24 June 2025, subject to final approval.
The Kavango West 1X well will be the second major exploration well targeting the Damara Fold Belt, a geological structure identified through modern seismic studies.
ReconAfrica plans to drill to a total depth of about 3,800 metres, aiming for an estimated 346 million barrels of gross unrisked prospective light to medium crude oil resources. The company holds a 90% working interest in the prospect.
These resource estimates are based on the most recent prospective resources report by Netherland, Sewell & Associates, Inc., dated 31 December 2024.
ReconAfrica has also mapped 19 prospects and four leads on the Namibian side of the Damara Fold Belt, which are estimated to contain around 2.6 billion barrels of unrisked prospective oil resources.
In addition, ReconAfrica has signed a Memorandum of Understanding with Angola’s National Agency for Petroleum, Gas and Biofuels for joint exploration in the Etosha-Okavango basin.
This adds 5.2 million acres in Angola to the company’s existing 6.3 million acres in Namibia, giving ReconAfrica a combined exploration area of around 13 million contiguous acres across Namibia, Angola, and Botswana.
ReconAfrica is a Canadian oil and gas company focused on onshore exploration in southern Africa.
BW Energy, which participated in the offering, is an oil and gas company specialising in phased development of proven offshore resources.
