ReconAfrica secures C$15 million for Kavango Basin exploration

Reconnaissance Energy Africa Ltd. (ReconAfrica) has announced a C$15 million bought-deal public offering to fund the next phase of its Kavango Basin exploration programme in northeastern Namibia.

The capital will be used for a technical evaluation at the Kavango West 1X well, specifically through an open-hole horizontal sidetrack and production testing programme. This work aims to assess the petroleum potential of the Huttenberg Formation, which is the primary reservoir target, while the Elandshoek Formation serves as a secondary target.

The financing involves the issuance of 20.548 million units at C$0.73 each. Each unit includes one common share and half of a common share purchase warrant. Research Capital Corporation is serving as the sole bookrunner and lead underwriter. The transaction is expected to close around September 10, subject to regulatory approvals.