Chamwe Kaira
Reconnaissance Energy Africa Ltd (ReconAfrica) announced a C$10 million (N$130 million) marketed public offering.
The proceeds will fund exploration, general corporate needs, and the drilling of a key well. Research Capital Corporation leads the deal, with Canaccord Genuity Corp. and Haywood Securities Inc. as underwriters.
BW Energy, already a major shareholder, is increasing its stake by investing about C$2 million, roughly 20% of the offering. This raises BW Energy’s ownership from 6.5% to 7.6%.
“This investment strengthens our strategic partnership and positions BW Energy at the forefront of Namibia’s drive for energy independence,” said BW Energy CEO Carl K. Arnet.
He called the Kavango West 1X well “a bold and data-driven step into an area with enormous potential”.
The purchased units have a six-month lock-up period, showing long-term confidence. Each unit includes one common share and a warrant exercisable at C$0.60 within 24 months.
The Kavango West 1X well is set to spud in late June. It will test a large fold in the Damara Fold Belt, which spans over 20 kilometres long and 5 kilometres wide. ReconAfrica will target the Otavi carbonate reservoir at a depth of 3,800 metres.
The company estimates the structure holds up to 346 million barrels of unrisked prospective oil and 1,839 billion cubic feet of gas on a 100% interest basis.
“This is one of our most promising prospects,” said Brian Reinsborough, president and CEO of ReconAfrica.
He referenced the encouraging results from the Naingopo well earlier this year. Reinsborough said the teams are working closely with local communities and regulatory bodies to ensure a safe and responsible operation.
The Damara Fold Belt covers 11.5 million acres across Namibia and Angola. ReconAfrica has mapped 19 prospects and four leads in the Namibian section alone. Independent estimates suggest the area could hold 2.6 billion barrels of oil, with the potential to transform southern Africa’s energy landscape.
ReconAfrica holds petroleum licences covering about 13 million contiguous acres across Namibia, Angola, and Botswana.
The company commits to applying international environmental and social best practices. BW Energy, backed by BW Offshore with experience in 40 floating production projects, brings operational know-how.
BW Energy has producing assets in Gabon and Brazil and holds a 95% interest in the Kudu field in Namibia.
