CHAMWE KAIRA
Reconnaissance Energy Africa (ReconAfrica) plans to raise about N$174 million (C$15 million) through a bought-deal public offering to fund further exploration and production testing in its Namibia operations.
The Canadian oil and gas company announced the offering on 1 September 2026, comprising 20.548 million units at C$0.73 each.
Each unit consists of one common share and half of a common-share purchase warrant. Each full warrant will allow the holder to buy one additional ReconAfrica common share at C$0.93 for up to 36 months after the offering closes.
ReconAfrica said the net proceeds will primarily be used for an open-hole horizontal sidetrack and production testing programme, targeting the primary reservoir in the Huttenberg formation and/or the secondary reservoir in the Elandshoek formation.
The funds will also be used for general corporate purposes and working capital.
The company has granted the underwriters an over-allotment option covering up to 15% of the units and/or their components, exercisable within 30 days of closing.
If fully exercised, the additional proceeds would increase the size of the financing.
The offering is being led by Research Capital Corporation, which is acting as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters.
Closing is expected on or about 10 September 2026, subject to the underwriters determining another date if necessary.
ReconAfrica is focused on oil and gas exploration in the Damara Fold Belt and Kavango Rift Basin, covering parts of northeastern Namibia, southeastern Angola and northwestern Botswana.
The company says it holds petroleum licences and access to about 13 million contiguous acres across the region.
In Namibia, ReconAfrica has been advancing exploration in the Kavango Basin, where its drilling programme has focused on identifying and testing hydrocarbon-bearing formations.
ReconAfrica said the financing will support its next phase of technical work as it seeks to evaluate the production potential of its identified reservoirs.
The offering will be conducted in Canada, except Quebec, under a prospectus supplement to the company’s base shelf prospectus.
The securities may also be offered privately in the United States to eligible purchasers and in other jurisdictions agreed by the company and the lead underwriter.
The common shares and warrant shares are expected to be listed on the TSX Venture Exchange, subject to approval. ReconAfrica will also seek approval to list the warrants.
At the C$0.73 offering price, the financing represents a significant injection of capital into the company’s ongoing exploration and testing programme, with the planned sidetrack and production testing expected to provide further information on the commercial potential of the targeted reservoirs.
