Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF) (ReconAfrica) revealed plans to raise C$10 million through an overnight marketed public offering of units to fund drilling of its high-potential Kavango West 1X exploration well in Namibia.
"We are excited to spud one of the company’s largest and most attractive prospects, Kavango West 1X,” said Brian Reinsborough, President and CEO of ReconAfrica.
“The results of the Naingopo exploration well announced in January 2025 increased our confidence in the potential for this well."
BW Energy Limited, which already holds a 6.5% stake in ReconAfrica, has committed to invest approximately C$2 million in the offering and will be subject to a six-month lock-up on its new shares.
BW Energy CEO Carl Arnet said the project aligns with the company's goals. “BW Energy is well positioned in this strategically important energy region... and further our position as a leader in Namibia’s development towards energy independence.”
With the investment, BW Energy’s stake is expected to rise to about 7.6%.
The proceeds will support the drilling of Kavango West 1X, part of the Damara Fold Belt play in northeast Namibia. The well targets 346 million barrels of gross unrisked prospective oil resources, or 1.8 trillion cubic feet of natural gas. Drilling is expected to begin following site preparation and permitting, with the rig move scheduled for late June.
ReconAfrica directors, management, and other investors have indicated interest in over C$4 million of the total offering.
Units are priced at C$0.50 each and include one common share and one warrant, exercisable at C$0.60 for two years.
The offering is expected to close during the week of June 16. ReconAfrica said it will seek to list the warrants on the TSX Venture Exchange.