Reconnaissance Energy Stock Price, News & Analysis

ReconAfrica (OTCQX: RECAF) has announced key operational updates for its Kavango West 1X exploration prospect in Namibia. The company is set to spud its second test well in the Damara Fold Belt play before the end of July 2025. The exploration well will reach a total depth of 3,800 meters and target over 1,500 meters of Otavi carbonate reservoir section.

The prospect covers a large structural fold spanning 22 kilometers long by 3 kilometers wide. ReconAfrica has identified over 19 prospects and leads in the Damara Fold Belt trend, with an additional 5.0 million acres secured in Angola through a recent MOU. Additionally, the company announced that Corporate Director Iman Hill will resign effective July 31, 2025, reducing the Board to five members.

ReconAfrica has successfully completed an upsized underwritten public offering, raising C$19 million through units priced at C$0.50, including full exercise of the over-allotment option. Each unit comprises one common share and one warrant exercisable at C$0.60 until June 2027. BW Energy, directors, and management participated with C$4.7 million. The proceeds will primarily fund the Kavango West 1X well drilling in the Damara Fold Belt play, targeting 346 million barrels of gross unrisked prospective oil resources. The well is planned for 3,800 meters depth, with rig mobilization scheduled for June 2025. The company has expanded its presence with an MOU in Angola, adding 5.2 million acres to its existing 6.3 million acres in Namibia.

ReconAfrica (RECAF) has filed its Q1 2025 financial documents and provided key operational updates. The company received approval from Namibia's Ministry of Mines & Energy for a farm-down agreement with BW Energy acquiring a 20% interest in PEL 73. Following the Naingopo exploration well results, ReconAfrica selected Prospect I as its next and largest drilling target.

A significant expansion was achieved through an MOU with Angola's ANPG, adding 5.2 million acres of exploration lands in the Etosha-Okavango basin. The company is progressing with pre-construction activities at Prospect I, including de-brushing, de-mining, and infrastructure development. The drilling rig is expected to move in late June with spudding shortly after.

ReconAfrica (RECAF) announced several key updates: Mark Friesen has been appointed as the new Managing Director of Investor Relations and Capital Markets, replacing Grayson Andersen. Friesen brings extensive energy finance experience and holds a CFA designation. The company also provided an update on its pending NAMCOR transaction announced in September 2022, stating that discussions are ongoing but not yet completed. Additionally, ReconAfrica plans to extend the expiry date of approximately 7.87 million warrants by 18 months. This includes extending 6.79 million July Warrants to January 18, 2027 (CAD $1.35 exercise price) and 1.07 million September Warrants to February 1, 2027 (CAD $1.40 exercise price). The warrant extension requires TSX Venture Exchange approval.

ReconAfrica has announced significant developments in its Namibian oil exploration operations. The company completed a strategic farm down with BW Energy, transferring 20% working interest in PEL 73, while maintaining 70% ownership (10% held by NAMCOR). The deal includes a $22 million equity investment and potential $180 million in contingent payments.

Key operational highlights include completing the Naingopo exploration well, which proved hydrocarbon potential in the Damara Fold Belt. The upcoming Prospect I well targets 346 million barrels of unrisked prospective oil resources. The NSAI Report revealed 12.8 billion barrels of undiscovered original oil in place in the Damara Fold Belt play.

The company strengthened its governance by appointing Diana McQueen as Board Chair and raised $56.3 million through public offerings. ReconAfrica also published its first Sustainability Report and secured listing on the Namibian Stock Exchange.

ReconAfrica (RECAF) has signed a Memorandum of Understanding (MOU) with Angola's National Oil, Gas and Biofuels Agency (ANPG) for a joint exploration project in the Etosha-Okavango basin. The agreement adds 5.2 million acres in Angola to ReconAfrica's existing 6.3 million acres in Namibia, focusing on the Damara Fold Belt and Rift Basin plays.

Under the MOU, ReconAfrica will hold an 80% working interest, with Sonangol holding the remaining 20%. The 24-month agreement involves geological studies, regional oil and gas seep analysis, 2D seismic program planning, and detailed geochemical sampling.

Additionally, ReconAfrica is preparing to drill Prospect I in Namibia, targeting 365 million barrels of unrisked prospective light/medium oil resources or 1.9 trillion cubic feet of unrisked prospective natural gas resources.

ReconAfrica (TSXV: RECO) (OTCQX: RECAF) has provided an update on its drilling plans for Prospect I in Namibia's Petroleum Exploration Licence 073. The prospect represents the company's largest drilling target to date, with potential resources of 365 million barrels of unrisked (32 million risked) prospective light/medium oil, or 1.9 trillion cubic feet of unrisked (140 billion cubic feet risked) prospective natural gas.

The drilling operation targets a depth of 3,800 metres with potential to drill deeper. The Otavi section is expected to be approximately 1,500-1,800 metres thick. The company's recent Naingopo exploration well, announced in January 2025, has enhanced their understanding of the Damara Fold Belt and increased confidence in Prospect I's potential, particularly after encountering over 50 metres of reservoir quality carbonates and oil shows.

ReconAfrica (TSXV: RECO) (OTCQX: RECAF) has announced the acceleration of its drilling schedule, moving the spud date for Prospect I into Q2 2025. The company has completed initial surveying and is conducting debushing activities, with demining operations planned in the coming weeks.

Prospect I, one of the largest mapped structures in the Damara Fold Belt, is targeting 365 million barrels of unrisked and 32 million barrels of risked prospective light/medium oil resources, or alternatively, 1.7 trillion cubic feet of unrisked and 126 billion cubic feet of risked prospective natural gas resources (100% working interest basis), according to Netherland, Sewell, & Associates.

The company expects to penetrate over 1,500 metres of Otavi reservoir. The project has been derisked by results from their first Damara Fold Belt well, Naingopo, which encountered reservoir in the Otavi carbonates, hydrocarbon shows, and oil to surface.

ReconAfrica (TSXV: RECO) (OTCQX: RECAF) has announced an upcoming webinar and conference call for investors and analysts scheduled for Thursday, February 13, 2025, at 11:00 am Eastern Time. The event will feature presentations from Brian Reinsborough, President and CEO, and Chris Sembritzky, Senior Vice President, Exploration.

Investors and analysts are encouraged to submit their questions in advance to investors@reconafrica.com. Participants can join through the provided RapidConnect URL, Audience URL, or via toll-free phone number for North America (+1-888-510-2154). A replay of the conference call will be available until February 20, 2025, at 11:59 pm Eastern Time, accessible through the toll-free number +1-888-660-6345 with entry code 38176#.