Reconnaissance Energy Africa Ltd (ReconAfrica) has increased the size of its underwritten private placement to N$379.2 million (C$32.0 million) after strong investor demand.
The funding will support expanded production testing at the Kavango West 1X discovery well in Namibia, advance appraisal drilling on the Kavango discovery, and accelerate exploration activities on the Ngulu Block offshore Gabon.
The capital raise will fund ReconAfrica’s multi-pronged 2026 work programme. In Namibia, the company plans to conduct an extensive cased-hole production test at the Kavango West 1X well, targeting up to eight hydrocarbon-bearing intervals. Production casing is expected to be installed to a depth of 4,260 metres, with the well potentially capable of being completed as a producing asset, subject to test results.
ReconAfrica will also proceed with preparations for an appraisal well on the Kavango discovery, including finalising the well location, permitting, and site preparation. Successful appraisal outcomes could enable the company to update its resource report and book reserves, a key step towards a final investment decision and eventual commercialisation.
The Calgary-based oil and gas company said the underwriters, led by Research Capital Corporation alongside Canaccord Genuity and Haywood Securities, have agreed to purchase 33,684,300 units at N$11.26 (C$0.95) per unit. Gross proceeds from the offering amount to C$32,000,085, equivalent to approximately N$379.2 million.
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.
The company said it will use commercially reasonable efforts to obtain the necessary approvals to list the warrants on the TSX Venture Exchange.
The offering includes a 15% over-allotment option, exercisable by the underwriters prior to closing, which is expected on or around 19 January 2026, subject to regulatory approvals. Underwriters will receive a cash fee equal to 6% of gross proceeds, as well as broker warrants equal to 6% of the total units issued.
Beyond Namibia, ReconAfrica plans to accelerate geochemical sampling of surface oil seeps in Angola under its memorandum of understanding area, with fieldwork expected to begin in April 2026.
In Gabon, the company is reprocessing 3D seismic data on the Ngulu Block, which includes the Loba discovery, with the objective of producing a third-party resource report and advancing an appraisal well to drill-ready status.
ReconAfrica said the expanded financing strengthens its balance sheet and positions the company to advance value creation across its African exploration and appraisal portfolio.
