Canadian energy company, Reconnaissance Energy Africa Ltd (ReconAfrica), is seeking to raise $7.3 million through a public share offering to support new oil exploration activities in Namibia.
The funds will be used to drill the Kavango West 1X exploration well, known as Prospect 1, with operations expected to begin following the rig’s arrival in June 2025.
This development was disclosed by the company in a statement shared on Monday, detailing its latest move in the Damara Fold Belt, where it hopes to expand findings from a previous discovery made earlier this year.
According to ReconAfrica’s president and chief executive officer, Brian Reinsborough, the Kavango West 1X well is one of the company’s most promising targets.
He noted that the results from the Naingopo well announced in January 2025 boosted confidence in the geological potential of the region.
“We are excited to spud one of the company’s largest and most attractive prospects, Kavango West 1X,” Reinsborough said. “The results of the Naingopo exploration well announced in January 2025 increased our confidence in the potential for this well.”
He added that preliminary work has already started on the site, including the construction of an access road and the preparation of the drill pad.
However, final drilling will only commence after the necessary regulatory permit is granted.
The offering will be led by Research Capital Corporation, which is acting as the sole book runner and lead underwriter. Other underwriters include Canaccord Genuity Corp and Haywood Securities Inc.
BW energy increases stake in ReconAfrica
As part of the public offering, Norwegian exploration and production company BW Energy has committed $1.46 million, representing 20% of the total raise.
This investment increases its ownership in ReconAfrica from 6.5% to 7.6%, with a six month lock up period placed on the shares.
Commenting on the move, BW Energy’s chief executive officer, Carl K. Arnet, noted that the company is positioning itself to take advantage of opportunities in Namibia’s emerging energy sector.
“BW Energy is well positioned in this strategically important energy region,” Arnet stated. “The data and insights gained through ReconAfrica’s exploration campaign will further our understanding of the geology and petroleum system in Namibia and help de risk planned exploration and development of our Kudu licence.”
ReconAfrica’s exploration work is part of a broader effort to unlock Namibia’s under explored inland basins.
The Damara Fold Belt, where the company is currently focused, is believed to hold significant hydrocarbon potential.
The project remains in its early stages, with more drilling expected as the company continues its search for commercial quantities of oil.
