Reconnaissance Energy Africa Ltd. (ReconAfrica) has announced a N$130.5 million (C$10 million) public offering to fund the drilling of its much-anticipated Kavango West 1X exploration well, marking a major step forward in the company’s exploration efforts within north-eastern Namibia.
The capital raise, launched amid growing investor interest in Namibia’s Kavango Basin, underscores ReconAfrica’s commitment to unlocking the potential of the Damara Fold Belt play—a geological structure believed to hold promising hydrocarbon reserves.
High-Stakes Drilling Strategy
The funds raised will directly support drilling activities for the Kavango West 1X well, a priority target for ReconAfrica as it expands operations in a basin that has captured the attention of the global oil and gas sector.
The public offering is being underwritten by Research Capital Corporation, with participation from Canaccord Genuity Corp. and Haywood Securities Inc.. Each unit in the offering is priced at N$6.52 (C$0.50) and includes one common share and one warrant, which allows investors to purchase an additional share at N$7.83 (C$0.60) within a two-year window.
BW Energy Increases Stake
In a parallel development, BW Energy, a key player in the Namibian upstream sector, is reportedly increasing its stake in ReconAfrica’s strategic activities, signaling rising confidence in the Kavango Basin’s long-term potential.
Though full details of the stake increase were not disclosed, industry insiders see the move as a strong endorsement of ReconAfrica’s technical direction and geological model for the Damara Fold Belt. BW Energy’s involvement could also bring operational synergies and future partnership opportunities.
“This capital raise positions us to aggressively pursue what could be a transformative discovery,” said a ReconAfrica spokesperson. “We believe Kavango West is a crucial step in proving out the basin’s commercial viability.”
Namibia’s Hydrocarbon Future
Namibia continues to emerge as one of Africa’s most dynamic frontier markets for oil and gas exploration. Major offshore discoveries in the Orange Basin have set the stage for increased interest in onshore plays like Kavango, where geological structures remain underexplored.
The Kavango Basin, covering parts of Namibia and Botswana, has drawn comparisons to prolific shale formations in North America. However, the Damara Fold Belt offers a different play type, with fold and thrust structures that could host conventional oil and gas reservoirs.
As ReconAfrica advances its onshore campaign with fresh funding and rising industry confidence, Namibia’s profile as a promising petroleum jurisdiction is only expected to grow. The Kavango West 1X well will be a key milestone, not only for ReconAfrica, but for the broader narrative of energy exploration and economic opportunity in southern Africa.
