Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF) has upsized its earlier private placement annoucement of C$20M to C$32M to fund a broad 2026 capital program spanning Namibia, Angola and offshore Gabon.
The offering, priced at C$0.95 per unit, comprises one common share and one-half of a common share purchase warrant, with each full warrant exercisable at C$1.20 for up to 36 months. The company said it will seek approval to list the warrants on the TSX Venture Exchange.
Net proceeds will be used to advance multiple projects in parallel, including an extensive production test and installation of production casing at the Kavango West 1X discovery well in Namibia, pre-drill work at a Kavango appraisal well, seismic reprocessing and appraisal planning at the Loba discovery on the Ngulu block offshore Gabon, and for general corporate purposes.
CEO Brian Reinsborough said the financing underpins the company’s most ambitious programme to date. “This equity raise will fund our 2026 capital program, which is the most comprehensive and diverse program in ReconAfrica's history,” he said in a statement.
“The success-based program will fund multiple activities in parallel, including advancing our Kavango discovery toward commerciality … and progressing the Loba discovery on our Ngulu exploration block offshore Gabon to a drill ready state.”
ReconAfrica is advancing the Kavango West 1X discovery in Namibia by moving directly to a cased-hole production test after encountering thicker-than-expected hydrocarbon-bearing intervals. The company plans to test up to eight zones and install production casing to 4,260 metres, enabling controlled testing and potential completion as a producing well. In parallel, it will select and prepare an appraisal well to test the pre-drill resource estimate, supporting a possible updated resource report, reserve booking and progress toward commercialization.
Beyond Namibia, ReconAfrica plans to accelerate geochemical sampling in Angola’s Damara Fold Belt from April 2026 and is advancing offshore Gabon’s Ngulu block through seismic reprocessing to support a resource report and appraisal well planning.