ReconAfrica raises $11 million to fund Namibia drilling and production testing

Reconnaissance Energy Africa (ReconAfrica), a Canadian oil and gas exploration company focused on Namibia’s Kavango Basin, plans to raise CAD15 million ($11 million) through a bought-deal public offering to fund a horizontal sidetrack and production testing program targeting oil and gas reservoirs in the Huttenberg and Elandshoek formations.

The company announced the financing on September 1, 2026, as it advances exploration activities across its petroleum licences in northeastern Namibia and neighbouring parts of Southern Africa.

ReconAfrica launches $11 million share offering

The capital raise comes shortly after ReconAfrica announced that it had brought hydrocarbons to the surface from its Kavango West 1X discovery well in Namibia, marking the company’s first recorded onshore hydrocarbon flow in the country. ReconAfrica has agreed with Research Capital Corporation, acting as sole bookrunner and lead underwriter, for the purchase of 20.548 million units at CAD0.73 each.

Each unit will comprise one common share and half of one common share purchase warrant. Each full warrant will allow its holder to purchase one additional common share at C$0.93 for up to 36 months following completion of the offering.

The company has also granted the underwriters an option to increase the offering by up to 15% to cover potential over-allotments and market stabilization. Closing is expected 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.

Funds to support horizontal drilling program

The net proceeds will primarily finance an open-hole horizontal sidetrack and production testing program targeting the primary reservoir in the Huttenberg formation and potentially the secondary reservoir in the Elandshoek formation.

The remaining proceeds will be used for general corporate purposes and working capital.

The financing comes as ReconAfrica seeks to advance its exploration program in the Kavango Rift Basin, where drilling and testing activities could provide further information on the region’s hydrocarbon potential.

ReconAfrica expands Southern African exploration footprint

ReconAfrica holds petroleum licences and access to approximately 13 million contiguous acres across the Damara Fold Belt and Kavango Rift Basin spanning northeastern Namibia, southeastern Angola and northwestern Botswana.

The company also operates the 1,214-square-kilometre Ngulu block in shallow waters offshore central Gabon, where it holds the Loba oil field discovery and a portfolio of prospects across pre-salt and post-salt plays.

The company says the Ngulu block is strategically positioned near producing oil fields and existing infrastructure.

ReconAfrica has committed to minimizing habitat disturbance and implementing environmental and social practices in line with international standards across its operating areas.

The latest financing will therefore provide additional capital for ReconAfrica’s near-term drilling and production testing activities while supporting its broader exploration strategy across Namibia and other African assets.