BLOCK(US:SQ) Globenewswire·2026-01-19 19:20Core Viewpoint - Reconnaissance Energy Africa Ltd. has successfully completed an underwritten offering, raising gross proceeds of C$36,800,098 to fund its capital program for 2026, which includes various exploration and operational activities [1][4]. Financing Details - The offering was led by Research Capital Corporation as the lead underwriter, with participation from Canaccord Genuity Corp. and Haywood Securities Inc. [2] - A total of 38,736,945 units were issued at a price of C$0.95 per unit, each consisting of one common share and one-half of a common share purchase warrant [3]. Use of Proceeds - The net proceeds from the offering will be allocated to: - Conducting extensive production tests and installing production casing at the Kavango West 1X discovery well - Advancing operations to spud the Kavango appraisal well - Re-processing seismic data at the Loba discovery and exploration inventory on the Ngulu block in Gabon - General corporate purposes and working capital [4][8]. Shareholder Changes - BW Energy Limited acquired 2,315,780 units in the offering, increasing its holdings to 26,338,780 common shares and 25,180,890 warrants, representing approximately 6.96% of the issued shares on an undiluted basis [5][7]. - Prior to the offering, BW Energy held approximately 7.08% of the issued shares, indicating a slight dilution in percentage ownership post-offering [6][7]. Insider Participation - Certain insiders of the company acquired a total of 107,000 units in the offering, which is classified as a related-party transaction [11]. - The company is relying on exemptions from formal valuation and minority security holder approval requirements due to the offering's fair market value being below 25% of its market capitalization [11]. Underwriter Compensation - The underwriters received a cash fee of 6% of the gross proceeds and additional broker warrants to acquire 2,148,045 common shares [13]. - An advisory fee of C$21,800 was also paid to the underwriters, along with advisory broker warrants [13]. Company Overview - ReconAfrica is engaged in oil and gas exploration in the Damara Fold Belt and Kavango Rift Basin, holding petroleum licenses over approximately 13 million contiguous acres [15].