Reconnaissance Energy Africa will now be able to drill its first well, Prospect L, in the Damara Fold Belt after raising N$238 million (C$17.25 million) from selling 19,166,705 at C$0,90 each.
The Canadian company identified a new fold belt province, the Damara Fold Belt, within PEL 73 in the Kavango Basin on April 3, 2023.
The company said it is targeting 163 million barrels of prospective oil resource potential and 843 billion cubic feet of prospective natural gas resource potential based on our recent Netherland, Sewell & Associates, Inc. Damara Fold Belt resource report.
“We are really pleased to have completed our C$17.25 million bought deal financing, thanks to our partners at Research Capital Corp., Haywood Securities, and Canaccord Genuity,” the company said in a statement on Wednesday.
Each unit has one common share of the company’s capital and one common share purchase warrant.
The successful completion of the offering was made possible through an underwriting agreement dated March 25, 2024.
Reconnaissance Energy Africa agreed with a syndicate of underwriters, led by Research Capital Corporation, as the lead underwriter and sole bookrunner.
The syndicate of underwriters also included Haywood Securities Inc. and Canaccord Genuity Corp., all of whom played a crucial role in this process.
ReconAfrica holds a 90% interest in a petroleum licence in northeast Namibia and a 100% interest in a petroleum interest in northwest Botswana.