Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF) (ReconAfrica) announced an agreement for an overnight marketed public offering of company units, priced at C$0.60 per unit, to raise gross proceeds C$10 million.
The Canadian oil and gas company said net proceeds from the offering will be used for activities related to the advancement of appraisal and exploration expenses related to the Ngulu Production Sharing Contract offshore in the Republic of Gabon.
Each unit of the financing will be comprised of one company common share plus one common share purchase warrant, with each warrant entitling the holder to purchase one ReconAfrica common share at an exercise price of C$0.72 at any time up to 24 months from closing of the offering.
ReconAfrica noted that it expects certain company management and directors and other president's list investors will be investing in the offering for a total of about C$3 million.
The closing of the offering is expected to occur on or about September 29, 2025.
"Our drilling operations in Namibia on the highly anticipated Kavango West 1X well are proceeding on schedule," Reconnaissance Energy Africa CEO Brian Reinsborough said in a statement.
"We are on track to reach total depth (of around 3,800 meters) and are expecting to release results in Q4 2025.”
The company noted that the Kavango West 1X exploration well, which spud on July 31, 2025, has been drilled to a depth of about 2,300 metres.