ReconAfrica arranges $20-million LIFE private placement

Executive Summary

• Reconnaissance Energy Africa Ltd. has arranged a C$20 million private placement offering of units at 95 cents per unit, led by Research Capital Corp., to fund its 2026 capital program.
• Net proceeds will be allocated to advancing the Kavango West 1X production test and appraisal drilling in Namibia, reprocessing seismic data for the Loba discovery on the Ngulu block in Gabon, and general corporate purposes.
• The offering includes warrants with a $1.20 exercise price and is expected to close on or around January 19, 2026, subject to regulatory approvals.

Key Details

• Financing Structure:
  • Gross Proceeds: C$20 million.
  • Price: 95 cents per unit.
  • Underwriters: Research Capital Corp. (Lead Underwriter/Sole Bookrunner), Canaccord Genuity Corp., and Haywood Securities Inc.
  • Instrument: Each unit consists of one common share and one-half of one common share purchase warrant.
  • Warrant Terms: Each warrant allows the purchase of one common share at an exercise price of $1.20, exercisable for 36 months from closing.
  • Overallotment Option: Underwriters have an option to purchase up to 15% additional units to cover overallotments.
  • Agent Compensation: 6% cash fee on gross proceeds plus broker warrants equal to 6% of the aggregate number of units issued (exercise price of 95 cents, 36-month term).
  • Insider Participation: Management, directors, and president's list investors are expected to participate; considered a related-party transaction subject to MI 61-101 exemptions.
• Use of Proceeds (2026 Capital Program):
  • Kavango West 1X (Namibia): Conduct extensive production testing and install production casing (surface to 4,260 meters) to test up to eight hydrocarbon-bearing intervals.
  • Kavango Appraisal Well (Namibia): Advance predrill operations to drill-ready status for the appraisal well, which tests the predrill resource estimate and is critical for booking reserves and Final Investment Decision (FID).
  • Ngulu Block (Gabon): Reprocess 3-D seismic data at the Loba discovery to advance toward a third-party resource report and drill-ready status for an appraisal well.
  • General: Working capital and general corporate purposes.
• Operational Updates:
  • Namibia: Decision made to proceed directly to cased hole production testing rather than a drill stem test due to thicker-than-expected hydrocarbon sections.
  • Angola: Plans to accelerate geochemical sampling of surface oil seeps in the MOU area, with crews expected in the field in April 2026.
  • Gabon: Signed production-sharing contract for Ngulu block in September 2025; seismic reprocessing is commencing to evaluate the Loba discovery.
• Closing: Expected on or about January 19, 2026, subject to regulatory approvals. Units will be free trading upon closing under Canadian securities laws.

Notable Quotes

• "This equity raise will fund our 2026 capital program, which is the most comprehensive and diverse program in ReconAfrica's history. The success-based program will fund multiple activities in parallel, including advancing our Kavango discovery toward commerciality, advancing our exploration inventory of the newly discovered Damara Fold belt play from Namibia into Angola, and progressing the Loba discovery on our Ngulu exploration block, offshore Gabon, to a drill-ready state. The activities in Namibia aim to position the company towards FID/commercialization of the Kavango discovery and the acceleration of first production." — Brian Reinsborough, President and CEO