Reconnaissance Energy Africa Ltd has significantly strengthened its balance sheet as it prepares to accelerate exploration and appraisal activities across three African jurisdictions. The company has increased its previously announced private placement from C$20 million to C$32 million, positioning itself to execute an expansive 2026 capital programme spanning Namibia, Angola and offshore Gabon.
The financing is priced at C$0.95 per unit, with each unit consisting of one common share and one-half of a common share purchase warrant. Each full warrant is exercisable at C$1.20 for a period of up to 36 months, and the company has indicated it will seek approval to list the warrants on the TSX Venture Exchange. The upsizing reflects investor appetite for ReconAfrica’s evolving asset base and the scale of its near-term operational ambitions.
Proceeds from the offering will be directed toward advancing multiple projects simultaneously. A major focus will be the Kavango West 1X discovery in Namibia, where ReconAfrica plans to undertake an extensive cased-hole production test and install production casing. Additional funding will support pre-drill activities at a Kavango appraisal well, aimed at validating pre-drill resource estimates and underpinning potential future reserve bookings. Capital will also be allocated to seismic reprocessing and appraisal planning at the Loba discovery on the Ngulu block offshore Gabon, alongside general corporate requirements.
Chief executive officer Brian Reinsborough described the raise as foundational to the company’s most ambitious operational phase to date. According to him, the financing enables a success-based programme that advances several assets in parallel, moving the Kavango discovery closer to commerciality while bringing the offshore Gabon project to a drill-ready stage.
In Namibia, ReconAfrica is accelerating development at Kavango West 1X following the encounter of thicker-than-anticipated hydrocarbon-bearing intervals. Rather than pursuing incremental testing, the company has opted to move directly into a cased-hole production test, with plans to evaluate up to eight zones and install production casing to a depth of 4,260 metres. This approach is designed to allow controlled testing and, if results support it, the potential completion of the well as a producer. Concurrently, work is underway to identify and prepare an appraisal well to test the discovery’s broader resource potential and support an updated resource assessment.
The company’s ambitions extend beyond Namibia. In Angola, ReconAfrica is preparing to accelerate geochemical sampling across the Damara Fold Belt beginning in April 2026, a step aimed at refining prospectivity and guiding future exploration decisions. Offshore Gabon, the focus is on advancing the Ngulu block through seismic reprocessing, with the objective of supporting a formal resource report and detailed appraisal well planning.
Taken together, the upsized financing marks a pivotal moment for ReconAfrica as it shifts from early-stage exploration toward appraisal and potential commercialization across a diversified African portfolio. The ability to fund multiple workstreams in parallel underscores both the scale of the company’s ambitions and its intent to unlock value across Namibia, Angola and Gabon within a compressed timeframe.
