ReconAfrica has secured C$36.8 million (about N$500 million) in fresh funding following the closing of a fully underwritten equity offering to accelerate appraisal and testing activities across its Namibian and international portfolio in 2026.
The Canadian-listed oil and gas explorer said the financing, which included the whole exercise of an overallotment option, fully funds a multi-pronged capital programme focused on advancing the Kavango West 1X discovery in northeastern Namibia and progressing technical work on the Ngulu Block offshore Gabon.
The offering was conducted on an underwritten basis led by Research Capital Corporation as lead underwriter and sole bookrunner, alongside Canaccord Genuity and Haywood Securities.
ReconAfrica issued 38.7 million units at C$0.95 per unit, raising aggregate gross proceeds of C$36.8 million (approximately N$500 million).
Each unit comprises one common share and one-half of a common share purchase warrant, with each whole warrant exercisable at C$1.20 for 36 months from closing.
The successful capital raise comes at a pivotal stage for the company’s Namibian operations.
The Kavango West 1X well, drilled in the Damara Fold Belt on the western margin of the Kavango Rift Basin, delivered results confirming a working petroleum system and opening the door to extended testing and appraisal.
ReconAfrica has described the well as a discovery that materially de-risks its acreage position in the basin.
With funding now secured, the company plans to conduct an extensive production test at Kavango West 1X, including installing production casing to enable longer-duration, multi-zone flow testing.
These activities are intended to generate critical data on reservoir performance and fluid characteristics to inform future appraisal and development decisions.
In parallel, ReconAfrica intends to advance operations toward spudding an appraisal well targeting the wider Kavango discovery.
This next phase of drilling is aimed at delineating the size, quality and continuity of the petroleum system identified to date, marking a transition from frontier exploration into early-stage appraisal.
The capital raise also supports ReconAfrica’s expanding footprint beyond southern Africa.
The company recently added the Ngulu Block in the shallow waters offshore central Gabon to its portfolio. The block includes the Loba discovery, and planned work includes reprocessing seismic data across the discovery and surrounding exploration inventory.
The objective is to advance the asset toward a resource report and drill-ready status for a future appraisal well.
Management has framed the offering as enabling accelerated value capture across its portfolio while maintaining balance sheet flexibility.
Net proceeds will also be applied to general corporate purposes and working capital to support execution of the 2026 programme.
A notable feature of the transaction was BW Energy’s continued participation, which increased its exposure to ReconAfrica through its wholly owned subsidiary, BW Energy Services Limited.
BW Energy acquired 2.3 million units in the offering for C$2.2 million, or roughly N$30 million.
Following the closing of the offering, BW Energy now holds just over 26.3 million ReconAfrica common shares and more than 25.1 million warrants.
This represents about 6.96 per cent of the company on an undiluted basis and approximately 12.77 per cent on a fully diluted basis.
ReconAfrica said BW Energy acquired the units for investment purposes and may adjust its holding in future, subject to market conditions and regulatory requirements.
BW Energy’s continued presence on the share register has drawn attention in Namibia, given its role in developing the Kudu gas project offshore southern Namibia and its broader operational footprint across Africa.
The investment reinforces strategic interest from established producers in ReconAfrica’s emerging asset base.
The offering also included limited participation by company insiders, who collectively acquired 107,000 units.
ReconAfrica said it relied on exemptions under Canadian securities regulations governing related-party transactions, noting that the value of insider participation did not exceed thresholds requiring formal valuation or minority shareholder approval.
Under the terms of the financing, the underwriters received a cash fee equal to 6% of the gross proceeds, with a reduced rate applied to president’s list orders. Broker warrants and advisory fees were also issued on standard market terms.
The company said the warrants underlying the units are expected to commence trading on the TSX Venture Exchange under the symbol RECO.WT.C around 23 January 2026, subject to final exchange approval.
ReconAfrica holds petroleum licences and access to approximately 13 million contiguous acres across northeastern Namibia, southeastern Angola and northwestern Botswana, making it one of the largest acreage holders in the underexplored Kavango Rift Basin.
