Staff Writer
Reconnaissance Energy Africa Ltd (ReconAfrica) has raised C$21.9 million (N$254 million) through a bought-deal public offering to fund a horizontal sidetrack and production testing programme at the Kavango West 1X well in Namibia.
The Canadian oil and gas company said it completed the offering of 29.93 million units at C$0.73 each, including the full exercise of the underwriters’ over-allotment option, generating gross proceeds of C$21.85 million.
The funds will be used to conduct 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.
ReconAfrica said the remaining proceeds will be used for general corporate purposes and working capital.
Each unit comprised one common share and half of a common share purchase warrant. Each whole warrant allows the holder to acquire an additional common share at an exercise price of C$0.93 until 10 September 2029.
The warrants are expected to begin trading on the TSX Venture Exchange under the symbol, subject to final exchange approval.
The offering was led by Research Capital Corporation as lead underwriter and sole bookrunner, with Canaccord Genuity Corp. and ATB Cormark Capital Markets forming part of the underwriting syndicate.
ReconAfrica paid the underwriters a cash commission of C$1.28 million and issued 1.76 million broker warrants. The underwriters also received a C$15 000 advisory fee and 6 000 advisory warrants.
ReconAfrica holds petroleum licences and access to about 13 million contiguous acres across the Damara Fold Belt and Kavango Rift Basin in northeastern Namibia, southeastern Angola and northwestern Botswana.
The company also operates the 1,214-square-kilometre Ngulublock in the shallow waters off central Gabon, which includes the Loba oil field discovery and other exploration prospects.
The company is listed on the TSX Venture Exchange, OTCQX, Frankfurt Stock Exchange and Namibia Securities Exchange under the respective codes RECO, RECAF, 0XD and REC.
