Reconnaissance Energy Africa has drilled the Kavango West 1X well in Namibia to a depth of 2,300 metres on its way to a planned total depth of 3,800 metres, while also securing C$10 million (N$136.6 million) through an overnight marketed public offering to fund exploration and appraisal work on its newly acquired Ngulu block offshore Gabon.
The Kavango West 1X well, which spudded on 31 July 2025, has reached casing depth above the Otavi carbonate reservoir.
Intermediate logging is underway, with plans to drill through about 1,500 metres of reservoir before reaching total depth. Results are expected in the fourth quarter of 2025.
Brian Reinsborough, President and CEO of ReconAfrica, said the drilling operations in Namibia on the highly anticipated Kavango West 1X well are proceeding on schedule.
“We are currently at the last casing depth immediately above the Otavi reservoir. Once the casing is set, we will begin drilling the Otavi carbonate section, extending over 1,500 meters before reaching a total depth in the well of approximately 3,800 meters. We are on track to reach TD and are expecting to release results in Q4 2025,” he said.
ReconAfrica has agreed with Research Capital Corporation as lead underwriter and sole bookrunner, with Canaccord Genuity Corp. and Haywood Securities Inc. as co-underwriters, for an overnight marketed public offering of units at C$0.60 (N$8.20) per unit, raising aggregate gross proceeds of C$10 million (N$136.6 million).
Each unit consists of one common share and one warrant exercisable at C$0.72 (N$9.83) for 24 months.
The offering is expected to close on or about 29 September 2025.
Management, directors, and the president’s list of investors are participating for approximately C$3 million (N$41 million) of the offering.
Proceeds will fund appraisal and exploration expenses under the Ngulu Production Sharing Contract (PSC) in Gabon, including seismic reprocessing and development of the Loba Complex, as well as working capital.
In September 2025, ReconAfrica entered into the Ngulu PSC offshore Gabon with Record Resources Inc., the Gabon Oil Company, and the Republic of Gabon. ReconAfrica holds a 55% working interest and operatorship, with Record at 20%, GOC at 15%, and the Republic of Gabon at 10% carried.
The Ngulu block covers 1,214 km² in shallow water in central Gabon.
It includes the Loba oil field discovery, made in 1976 with 140 metres of gross pay, and has a potential production of ~20,000 barrels per day.
There are 28 mapped exploration prospects across pre-salt and post-salt plays.
Reinsborough said the company has spent the past year looking for a complementary addition to the existing high-potential exploration program in Namibia.
“The addition of the offshore Ngulu PSC accomplished many of our goals. We have added near-term development drilling opportunities with line of sight to production and cash flow, low-risk appraisal drilling, and multiple high-potential exploration plays in a proven hydrocarbon basin with nearby infrastructure,” Reinsborough said.
The company has committed during the initial four-year PSC term to geological and geophysical studies, 3D seismic reprocessing, and drilling one exploration well.
