Reconnaissance Energy Africa (ReconAfrica), the Canadian oil and gas explorer focused on exploration assets in Namibia, Angola, Botswana and Gabon, has increased its previously announced bought-deal public offering to CAD19 million ($14 million) as it prepares for a horizontal sidetrack and production testing programme in Namibia.

The company will issue 26.03 million units at CAD0.73 per unit for gross proceeds of CAD19 million, up from the previously announced CAD15 million ($11 million) offering of 20.55 million units.

Funding expanded drilling programme

Each unit comprises one common share and one-half of a common share purchase warrant. Each whole warrant will entitle its holder to purchase one additional common share at CAD0.93 for up to 36 months following the closing of the offering. ReconAfrica will also seek the necessary approvals to list the warrants on the TSX Venture Exchange.

The company plans to use the net proceeds primarily 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.

The remaining proceeds will support general corporate purposes and working capital.

Offering includes 15% over-allotment option

Research Capital Corporation is acting as sole bookrunner and lead underwriter, alongside Canaccord Genuity Corp. and ATB Cormark Capital Markets.

ReconAfrica has granted the underwriters an over-allotment option allowing them to acquire additional units, or components of the units, equivalent to up to 15% of the offering. The option can be exercised within 30 days following closing to cover potential over-allotments and support market stabilization.

The offering is expected to close on or about September 10, 2026, subject to regulatory approvals and acceptance by the TSX Venture Exchange for the listing of the common shares and warrant shares.

ReconAfrica expands exploration footprint

ReconAfrica holds petroleum licences and access to approximately 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 Ngulu block in shallow waters offshore central Gabon. The block includes the Loba oil discovery and a portfolio of pre-salt and post-salt exploration prospects.

The latest financing comes as ReconAfrica advances its drilling and production testing plans, with the success of the programme expected to provide further insight into the commercial potential of its Namibian reservoirs.