Reconnaissance Energy Africa, a Canadian oil and gas exploration company focused on petroleum assets in Namibia, Angola, Botswana and Gabon, has raised CAD21.9 million ($16 million) through a bought-deal public offering to fund further exploration and production testing at its Kavango Basin project in Namibia.

The company announced on September 10, 2026, that it had completed the upsized offering of 29.93 million units at CAD0.73 per unit, generating gross proceeds of CAD21.85 million ($15.79 million). The offering included the full exercise of the underwriters’ over-allotment option.

ReconAfrica targets Kavango production test

The proceeds will primarily fund an open-hole horizontal sidetrack and production testing programme at the Kavango West 1X well, targeting the primary reservoir in the Huttenberg Formation and potentially the secondary reservoir in the Elandshoek Formation.

The programme is aimed at evaluating the production potential of the reservoirs as ReconAfrica advances exploration activities in the Kavango Rift Basin.

The company will also use part of the proceeds for general corporate purposes and working capital.

Each unit issued in the offering consisted of one common share and one-half of a common share purchase warrant. Each full warrant allows its holder to acquire one additional ReconAfrica common share at CAD0.93 until September 10, 2029. The warrants are expected to begin trading on the TSX Venture Exchange under the symbol “RECO.WT.D”, subject to final exchange approval.

Capital raise strengthens exploration programme

Research Capital Corporation acted as lead underwriter and sole bookrunner for the offering, alongside Canaccord Genuity Corp. and ATB Cormark Capital Markets. ReconAfrica paid the underwriting syndicate an aggregate cash commission of approximately CAD1.28 million ($924,997) and issued 1.76 million broker warrants.

Each broker warrant entitles its holder to acquire one common share at CAD0.73 until September 10, 2029. The underwriters also received CAD15,000 in advisory fees and 6,000 advisory warrants.

The financing provides ReconAfrica with additional capital as it advances its exploration and appraisal programme across its African portfolio.

ReconAfrica holds 13 million-acre African position

ReconAfrica is focused on oil and gas exploration in the Damara Fold Belt and Kavango Rift Basin, spanning northeastern Namibia, southeastern Angola and northwestern Botswana.

The company holds petroleum licences and access to approximately 13 million contiguous acres across the region, giving it a substantial exploration footprint in the Kalahari Desert.

In addition to its onshore assets, ReconAfrica operates the Ngulu block in the shallow waters offshore central Gabon. The 1,214-square-kilometre block is located near producing oil fields and existing infrastructure.

The Ngulu block includes the Loba oil discovery as well as a portfolio of high-impact prospects targeting pre-salt and post-salt plays.

Namibia remains central to growth strategy

The latest financing underscores ReconAfrica’s continued focus on Namibia as it seeks to establish the commercial potential of its Kavango Basin acreage.

The horizontal sidetrack and production testing programme is expected to provide additional information on reservoir characteristics and production potential at Kavango West 1X.

ReconAfrica said it remains committed to minimising habitat disturbance and applying environmental and social best practices across its project areas.

The company’s latest capital raise comes as it seeks to advance exploration in a region that has attracted increasing attention from international oil and gas companies, while simultaneously developing its broader portfolio in southern and central Africa.