ReconAfrica is preparing to drill its second exploration well in Namibia’s Kavango Basin, bolstered by a fresh capital raise aimed at advancing its ambitious exploration program.
The Canadian-based explorer announced plans to raise C$10 million (approximately US$7.3 million) through a public share offering, as disclosed after market close on the Toronto Stock Exchange. The offering is expected to close during the week of June 16.
Proceeds from the raise will primarily fund exploration activities, including the upcoming well at Kavango West-1X, as well as cover working capital and general corporate expenses.
Following the unsuccessful Naingopo-1X well earlier this year, ReconAfrica is shifting focus to Kavango West-1X, which CEO Brian Reinsborough described as one of the company’s most promising prospects to date.
ReconAfrica’s proprietary Jarvie 1 rig is scheduled to arrive at the PEL 73 site by late June, with drilling preparations underway. Field crews are currently finalizing access roads and the well pad, while the company awaits final permit approvals.
The Kavango West-1X well will target the Damara Fold Belt—an extensive geological play spanning over 20 kilometers in length and five kilometers in width. Drilling will focus on a thick carbonate reservoir within the Otavi Formation, aiming for a total depth of approximately 3,800 meters.
ReconAfrica estimates the prospect could contain up to 346 million barrels of oil or 1.8 trillion cubic feet of natural gas on an unrisked basis. Risked estimates suggest the well could yield about 30 million barrels of oil or 133 billion cubic feet of gas.
To date, the company has mapped 19 prospects and four additional leads across Namibia’s portion of the Damara Fold Belt, which also extends into Angola—an area where ReconAfrica plans further expansion.
BW Energy, which holds a 20% stake in PEL 73, has announced plans to acquire approximately 20% of the newly issued shares. This could increase its overall stake in ReconAfrica from 6.5% to 7.6%, with the newly acquired stock subject to a six-month lock-up period.
