NAMIBIA: ReconAfrica Seeks $10M to Drill Kavango West 1X well
Reconnaissance Energy Africa announces that it has entered into an agreement with Research Capital Corporation as the lead underwriter and sole bookrunner for an overnight marketed public offering of units of the Company at a price of C$0.50 per Unit for aggregate gross proceeds to the Company of C$10,000,000.
In connection with the Offering, indications of lead orders have been received from BW Energy Limited , directors and management members of ReconAfrica, and certain other investors, expecting to purchase over C$4,000,000 of Units. BW Energy has agreed to a follow-on strategic equity investment in the Company of approximately C$2,000,000 under the Offering, reaffirming it’s previously announced strategic partnership with ReconAfrica. BW Energy’s additional investment represents approximately 20% of the Offering, increasing BW Energy’s share ownership position in ReconAfrica from approximately 6.5% prior to the Offering to approximately 7.6% after the Offering. The Units purchased by BW Energy under the Offering will be subject to a six-month lock-up agreement.
The net proceeds from the Offering will be used for exploration activities, working capital and general corporate purposes. The primary exploration activity to be funded with net proceeds from the Offering will be the drilling of Prospect I, which has been named the Kavango West 1X well. Work on the access road and drill site is currently being completed while the Company awaits receipt of the remaining requisite permits. The rig move to the Kavango West 1X well drilling location is scheduled in late June, with drilling to begin thereafter.
Brian Reinsborough, President and CEO of ReconAfrica stated: “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. Our teams remain very engaged with local communities and authorities to ensure a safe and efficient operation of this well.”