Reconnaissance Energy Africa (TSX-V:RECO) has upsized its bought-deal public offering to C$19 million ($19.14 million) to fund horizontal drilling and production testing at its Kavango West Project in Namibia.
The company amended its agreement with lead underwriter Research Capital and a syndicate including Canaccord Genuity and ATB Cormark Capital Markets to issue 26 million units at C$0.73 per unit.
Each unit consists of one common share and half a warrant. Every full warrant is exercisable at C$0.93 for 36 months post-closing. Underwriters hold a 30-day, 15% over-allotment option.
Net proceeds will fund an open-hole horizontal sidetrack and production testing program targeting the primary Huttenberg formation and secondary Elandshoek formation reservoirs at the Kavango West 1X well. The program marks a key step in testing commercial viability following earlier vertical drilling campaigns.
Closing is expected on or about 10 September 2026, subject to regulatory approvals including TSX Venture Exchange acceptance. A prospectus supplement to its 13 April 2026 short form base shelf prospectus will be filed across Canadian securities regulators, excluding Québec.
Reconnaissance Energy Africa is an oil and gas explorer focused on opening and appraising frontier hydrocarbon basins in Africa.
Write to Paula Fabe at Mining.com.au
Images: Reconnaissance Energy Africa
