ReconAfrica to Raise C$10M to Fund Namibian Exploration Activities

Canadian oil and gas company ReconAfrica is raising C$10 million through a public share sale to fund exploration activities in Namibia. The investment will support the drilling of the Kavango West 1X exploration well (Prospect 1), the second in the Damara Fold Belt play, with drilling activities set to start following the rig arrival in June 2025.

Independent full-service investment firm Research Capital Corporation will serve as a lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters including Canaccord Genuity Corp, and Haywood Securities Inc. Work on the access road and drill site has already commenced at the project site, with the requisite permit awaiting approval.

“We are excited to spud one of the company’s largest and most attractive prospects, Kavango West 1X. The results of the Naingopo exploration well announced in January 2025 increased our confidence in the potential for this well,” stated Brian Reinsborough, President and CEO of ReconAfrica.

In line with its strategic equity investment – whereby the company acquired 16.8 million shares in ReconAfrica in 2024 – exploration and production company BW Energy is mobilizing C$2 million under the offering – representing 20%. Subject to a six-month lock period, the investment increases BW Energy’s ownership position in ReconAfrica from 6.5% to 7.6%.

“BW Energy is well positioned in this strategically important energy region and [aims to] further our position as a leader in Namibia’s development towards energy independence. The data and insights gained through ReconAfrica’s exploration campaign will further our understanding of the geology and petroleum system in Namibia and help de-risk planned exploration and development of our Kudu license,” added Carl K. Arnet, CEO of BW Energy.