Reconnaissance Energy Africa Ltd (ReconAfrica) has closed an underwritten share offering that raised N$437.9 million (C$36.8 million), strengthening the company’s financial position as it accelerates oil and gas exploration activities in Namibia’s Kavango Basin and offshore Gabon.
BW Energy Limited participated in the offering through a subsidiary, acquiring units valued at N$26.2 million (C$2.2 million). Following the transaction, BW Energy now holds just under 7% of ReconAfrica’s issued shares on an undiluted basis, the company said.
ReconAfrica said the proceeds will be used to fund multi-zone production testing and the installation of production casing at the Kavango West 1X discovery well, as well as the spudding of a follow-on appraisal well in the Kavango licence area. Additional funding will be directed towards the reprocessing of seismic data at the Loba discovery on the Ngulu Block offshore Gabon, with the aim of progressing the asset towards a resource report and drill-ready status.
According to the company, a total of 38,736,945 units were issued at a price of C$0.95 per unit. Each unit comprises one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at an exercise price of C$1.20 at any time up to 36 months from the closing of the offering.
ReconAfrica operates across the Damara Fold Belt and Kavango Rift Basin in north-eastern Namibia, as well as in south-eastern Angola and north-western Botswana, covering approximately 13 million contiguous acres. The company said it remains committed to conducting its operations in line with international environmental and social best practices.
