ReconAfrica Secures C$36.8M to Advance African Oil & Gas Projects

CALGARY, AB – January 19, 2026 – Reconnaissance Energy Africa Ltd. has successfully closed a significant C$36.8 million financing deal, providing the Canadian oil and gas explorer with the capital to accelerate its ambitious and controversial projects in both Namibia and Gabon. The oversubscribed offering signals renewed investor confidence as the company stands at a critical juncture, aiming to convert promising exploration results into commercially viable energy production.

The proceeds are earmarked for a multi-pronged strategy that includes conducting the first-ever production test in Namibia's vast Kavango Basin, fast-tracking a follow-on appraisal well, and advancing a recently acquired offshore block in Gabon. The move positions ReconAfrica to aggressively pursue its portfolio in 2026, but also intensifies the spotlight on its operations within one of southern Africa’s most ecologically sensitive regions.

A Critical Test in the Kavango Frontier

The bulk of the new funding is set to de-risk ReconAfrica’s flagship project in northeastern Namibia, where it holds exploration licenses covering an immense area of the Kavango Basin. The immediate priority is the Kavango West 1X well, which has been a source of considerable optimism for the company. Recent drilling encountered what the company described as an encouraging 400-meter gross section of hydrocarbon-bearing rock, with wireline logging confirming 64 meters of net pay.

With the new capital, ReconAfrica will now proceed with an extensive production test on the well—a pivotal moment for the company and the region. This test, the first of its kind in the basin, is designed to determine if the hydrocarbons can flow at commercial rates. The company plans to install production casing and use modern perforation techniques to evaluate the most promising zones. The results will be a decisive factor in validating the economic potential of the entire sedimentary basin, which Netherland, Sewell & Associates has estimated could hold billions of barrels of oil in place.

This high-stakes test follows the drilling of the Naingopo exploration well in 2024, which confirmed a working petroleum system but failed to find commercial quantities of oil or gas. The mixed results from Naingopo have placed even greater pressure on the Kavango West 1X well to deliver a definitive success. The financing ensures the company can also immediately advance operations for a subsequent appraisal well, demonstrating a clear strategy to build momentum should the production tests prove successful.

Diversifying with an Offshore Play in Gabon

While Namibia remains its core focus, ReconAfrica is also using the funds to diversify its asset base with its entry into West Africa's mature oil province of Gabon. In September 2025, the company acquired the Ngulu block, an offshore concession that includes the previously discovered but undeveloped Loba oil field.

The Loba discovery, originally drilled in 1976, is located in shallow water just 10 kilometers from existing production infrastructure. ReconAfrica believes that modern seismic reprocessing techniques, funded by this offering, can better define the reservoir and unlock a near-term production opportunity. The company has highlighted the potential for the Loba field to produce approximately 20,000 barrels per day, offering a much faster path to revenue than the greenfield exploration in Namibia.

Beyond the Loba field, the Ngulu block contains an inventory of 28 other identified prospects. This strategic acquisition provides ReconAfrica with a balanced portfolio, combining high-risk, high-reward frontier exploration in Kavango with a lower-risk, near-term development opportunity in a proven hydrocarbon region. The funds will be used to advance the Gabonese asset toward a formal resource report and make an appraisal well drill-ready.

A Vote of Confidence from a Strategic Partner

Underpinning the significance of the financing is the continued participation of BW Energy Limited, a prominent energy player with deep operational experience in Africa. BW Energy, which already holds a strategic 20% working interest in ReconAfrica’s Namibian license, acquired an additional 2.3 million units in the offering. Following the transaction, BW Energy maintains a substantial stake in the company, representing a powerful endorsement from an industry peer.

This partnership, formalized in 2024, provides ReconAfrica not only with capital but also with technical expertise, particularly in navigating the path to commercialization. BW Energy's own portfolio includes the Kudu gas field in Namibia, giving it significant in-country experience. For investors, the continued backing from a seasoned operator like BW Energy serves as a crucial validation of ReconAfrica’s assets and its operational strategy. An industry analyst noted that such partnerships are vital for junior explorers, as they lend credibility and operational capability that can be difficult to build alone.

Balancing Ambition with Environmental Scrutiny

Despite the operational momentum and fresh funding, ReconAfrica's activities in the Kavango Basin remain shadowed by significant environmental and social controversy. The company's license area borders the Kavango-Zambezi Transfrontier Conservation Area (KAZA), a vital habitat for Africa’s largest elephant population, and lies upstream from the pristine Okavango Delta, a UNESCO World Heritage Site.

Environmental organizations and local community representatives have consistently raised alarms about the potential impact of drilling on the region's fragile ecosystem and water resources. Critics have challenged the adequacy of the company’s environmental impact assessments and accused it of insufficient community consultation. Allegations have surfaced regarding operations within protected community conservancies, damage to farmland, and the potential for water contamination in a region where hundreds of thousands of people depend on groundwater.

For its part, ReconAfrica maintains it is committed to operating to the highest international standards and working collaboratively with all stakeholders. The company frequently highlights its social investment programs, including the drilling of 36 community water wells that it reports now serve over 10,000 people, as well as providing local employment. Namibian government officials have supported the exploration, citing the potential for economic independence and job creation while vowing to ensure environmental sustainability. This C$36.8 million infusion empowers ReconAfrica to push forward with its plans, but it also amplifies the responsibility on the company to prove it can successfully balance its economic ambitions with the profound environmental stewardship required in this unique corner of the world.