Calgary, Alberta — January 7, 2026 — Leads & Copy — Reconnaissance Energy Africa Ltd. (TSXV: RECO) (OTCQX: RECAF) (FSE: 0XD) (NSX: REC) has increased the size of its previously announced overnight marketed, listed issuer financing exemption private placement offering due to strong investor demand. The company has entered into an amended agreement with Research Capital Corporation, acting as the lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters including Canaccord Genuity Corp. and Haywood Securities Inc.
Under the agreement, the Underwriters will purchase 33,684,300 units at a price of C$0.95 per unit, resulting in aggregate gross proceeds of C$32,000,085. Certain members of management, directors, and other president’s list investors will participate in the offering.
Each unit will consist of one common share of the company and one-half of one common share purchase warrant. Each warrant will allow the holder to purchase one common share at an exercise price of C$1.20 for up to 36 months from the offering’s closing. ReconAfrica will seek approvals to list the warrants on the TSX Venture Exchange.
ReconAfrica intends to expedite activity across its portfolio to accelerate value capture. This strategy is supported by the recent success at the Kavango West 1X well and the addition of the Ngulu Block offshore Gabon, which includes the Loba discovery. The offering is intended to fund this multi-pronged 2026 capital program.
Net proceeds from the offering will be allocated to the following activities:
- Conducting an extensive production test and installing production casing at the Kavango West 1X discovery well.
- Advancing pre-drill operations to a drill-ready status at the Kavango appraisal well.
- Re-processing seismic data at the Loba discovery and exploration inventory on the Ngulu block in Gabon to advance towards a resource report and drill-ready status of an appraisal well.
- General corporate purposes and working capital.
In Namibia, ReconAfrica plans to proceed directly to production testing at the Kavango West 1X well, instead of conducting a drill stem test (DST), to allow for controlled testing of intervals. A cased hole production test was chosen to efficiently test the deliverability of all hydrocarbon-bearing intervals, due to thicker than expected sections. Testing of up to eight intervals is planned.
A production casing string will be installed from the surface to a total depth of 4,260 meters. This will enable controlled testing of hydrocarbon-bearing intervals and allow the well to be completed as a potential producing well.
ReconAfrica will also select the appraisal well location, advance permitting, and prepare the drill-site to a drill-ready status, to test the pre-drill expected resource estimate of the Kavango structure. Successful results would enable the company to issue an updated resource report and book reserves on the field, a step toward a final investment decision (FID) and commercialization.
In Angola, ReconAfrica plans to accelerate geochemical sampling of surface oil seeps in the Memorandum of Understanding (MOU) area and commence permitting for a potential 2D seismic program to evaluate the Damara Fold Belt. Crews are expected to be in the field in April 2026 to begin the sampling program.
In Gabon, ReconAfrica signed a Production Sharing Contract (PSC) in September 2025 with the Republic of Gabon and Gabon Oil Company (GOC) for the Ngulu block. The company is gathering and reprocessing available seismic surveys and technical data on the Ngulu lease, and has commenced reprocessing efforts on 3D seismic data covering prospective areas. Following reprocessing and evaluation, the company intends to obtain a third-party resource report outlining the block’s potential and progress the Loba field appraisal well to a drill-ready status. This data is critical for selecting an appraisal well location on the Loba discovery.
The Underwriters have been granted an option to purchase up to an additional 15% of the total number of units issued under the Offering to cover over-allotments, exercisable up to two business days prior to the closing of the Offering.
The offering is expected to close on or about January 19, 2026, subject to regulatory approvals. The Units will be offered for sale pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106. The Units and underlying securities will be immediately “free-trading” upon closing under applicable Canadian securities laws.
An amended and restated offering document is available at www.sedarplus.ca and the company’s website.
The participation of insiders will be considered a related party transaction subject to Multilateral Instrument 61-101. The Company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements under MI 61-101.
The Underwriters will receive a cash fee equal to 6% of the gross proceeds of the Offering, including the Over-Allotment Option. In addition, the Company will issue to the Underwriters broker warrants equal to 6% of the aggregate number of Units issued under the Offering. Each broker warrant will entitle the holder to purchase one Common Share at an exercise price of C$0.95 for a period of 36 months from closing of the Offering.
Brian Reinsborough, President and Chief Executive Officer
Mark Friesen, Vice President, Investor Relations & Capital Markets
IR Inquiries Email: Investors@reconafrica.com
Media Inquiries Email: Media@reconafrica.com
Tel: +1-877-631-1160
Source: Reconnaissance Energy Africa Ltd.
