6 Jun 2025
Canadian firm seeks N$130 million for Namibian oil and gas exploration as strategic investors double down on high-potential Kavango basin play.
Reconnaissance Energy Africa Ltd. is seeking to raise N$130 million (C$10 million) to fund exploration activities, working capital and general corporate purposes, the company announced.
The bulk of the funds will support the drilling of Prospect I, known as the Kavango West 1X well, in Namibia’s Damara Fold Belt. The company said preparations are underway, with construction of the access road and drill site nearing completion as ReconAfrica awaits final permits.
BW Energy has committed C$2 million to the fundraising effort, raising its equity stake in ReconAfrica from 6.5% to 7.6%. An additional C$4 million—at C$0.50 per unit—is expected from BW Energy, company directors, members of ReconAfrica’s management, and other investors.
ReconAfrica plans to mobilize the drilling rig to the Kavango West 1X site by late June, with drilling to commence shortly thereafter. This will mark the company’s second test well in the Damara Fold Belt, targeting a large fold structure identified through modern 2D seismic imaging. The feature spans more than 20 kilometers in length and 5 kilometers in width and is expected to intersect a thick Otavi carbonate reservoir—ReconAfrica’s primary exploration target in the region.
The planned total depth of the Kavango West 1X well is approximately 3,800 meters (12,500 feet). The well is targeting 346 million barrels of gross unrisked (30 million barrels of gross risked) prospective light to medium crude oil resources on a 100% working interest basis, according to an assessment by Netherland, Sewell & Associates, Inc. (NSAI). This translates to 312 million barrels net unrisked (27 million barrels net risked) to ReconAfrica’s 90% working interest.
Alternatively, the well could yield up to 1,839 billion cubic feet (Bcf) of gross unrisked natural gas (133 Bcf risked) on a 100% basis—equating to 1,655 Bcf unrisked net (120 Bcf risked net) to the company’s 90% interest.
ReconAfrica CEO Brian Reinsborough said the company is excited to spud what he described as one of its largest and most attractive prospects. He added that the results of the Naingopo exploration well, released in January 2025, have bolstered confidence in the Kavango West 1X’s potential.
BW Energy CEO Carl K. Arnet said his company is pleased to participate in the high-potential drilling campaign. “BW Energy is well-positioned in this strategically important energy region,” Arnet said, adding that data from ReconAfrica’s operations would contribute to understanding the area’s geology and help reduce exploration risk for BW’s Kudu licence.