Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) said on Monday it has raised C$36.8 million ($27.2 million) after completing an underwritten equity offering, including the full exercise of an over-allotment option.
The Canada-listed oil and gas explorer issued 38.7 million units at C$0.95 each, with each unit consisting of one common share and one-half of a common share purchase warrant, the company said. Each full warrant allows the holder to buy one share at C$1.20 within 36 months of the offering’s close.
ReconAfrica said the proceeds will be used to fund its 2026 capital program, including production testing and installation of production casing at its Kavango West 1X discovery well, drilling an appraisal well in the Kavango basin, and reprocessing seismic data at the Loba discovery on the offshore Ngulu block in Gabon.
Funds will also be allocated to advancing the Gabon assets toward a resource report and drill-ready status, as well as for general corporate purposes and working capital.
BW Energy, through its wholly owned subsidiary BW Energy Services Limited, acquired about 2.3 million units in the offering for roughly C$2.2 million.
Following the transaction, BW Energy beneficially owns about 26.3 million common shares and 25.2 million warrants, roughly 7% of ReconAfrica’s shares outstanding on an undiluted basis.
The warrants are expected to begin trading on the TSX Venture Exchange around January 23, under the symbol RECO.WT.C.