ReconAfrica Secures Funding
ReconAfrica Closes $21.9 Million Offering to Fund Kavango West Testing Program
Anonymous
Reconnaissance Energy Africa Ltd. (ReconAfrica) has closed a $21.9 million bought-deal public offering to fund drilling and testing work in Namibia Recorder. The company sold nearly 30 million units at C$0.73 each, bringing in C$21.85 million in gross proceeds The Whig.
The money will pay for a horizontal sidetrack and production testing program at Kavango West 1X in the Huttenberg Formation Pembroke Observer. Research Capital Corporation led the underwriting effort. The company paid underwriters C$1.28 million in cash commissions and issued 1.76 million broker warrants Leader-Post.
What the Money Will Fund
ReconAfrica plans to use the C$21.85 million primarily for drilling work in Namibia Montreal Gazette. The company will conduct an open-hole horizontal sidetrack and run production tests at the Kavango West 1X well Stratford Beacon Herald. Some proceeds will also cover general corporate expenses and working capital needs Ottawa Sun.
Public Offering Details and Deal Structure
The bought-deal offering closed with the underwriters exercising their full over-allotment option The Observer. Investors bought 29,932,200 units at C$0.73 per unit. This brought total gross proceeds to C$21,850,506 Sault Star.
Research Capital Corporation acted as lead underwriter and sole bookrunner for the deal Edmonton Sun. The underwriters earned C$1,282,910.76 in cash commissions plus 1,757,412 broker warrants as compensation The Crag and Canyon.
ReconAfrica's Namibia Drilling Program
The Kavango West 1X well sits in the Huttenberg Formation of Namibia Fairview Post. ReconAfrica is testing a horizontal sidetrack from the existing wellbore. Production testing will help determine the well's commercial potential Woodstock Sentinel-Review.
Why This Funding Matters for ReconAfrica
The capital raise gives ReconAfrica money to push forward with exploration in Namibia Hanna Herald. The Kavango West 1X represents a key test well for the company's drilling program Brantford Expositor. Success in these tests could open doors to expanded drilling and production in the region.
Sentiment
NeutralNEGATIVENEUTRALPOSITIVE
Publishers
16
Articles
15
Reach
16
Topics
A
AnonymousAuthor
