Reconnaissance Energy Africa Ltd. (RECO:TSXV; RECAF:OTCQX; 0XD:FSE) is a Canadian oil and gas company engaged in high-potential exploration in southern Africa with licenses in Namibia (PEL 73), a Memorandum of Understanding (MOU) in Angola, and an offshore concession in the shallow waters of Gabon (Ngulu PSC). In license block PEL 73 in Namibia, the company holds over 6.0 million acres and is progressing a play-opening exploration program in the Damara Fold Belt.
In Gabon, the company recently entered an offshore block called NGULU, which offers near-term appraisal opportunities in addition to high-potential exploration prospects in a proven hydrocarbon basin.
Recon Africa saw a number of advancements in 2025, including:
- Drilling its second Damara Fold Belt well, the Kavango West 1X well, resulting in a hydrocarbon discovery.
- Expanding its prospective acreage position in the Damara Fold Belt into Angola by signing an additional MOU for 5.0 million acres at a low cost of entry.
- Entering the shallow waters offshore Gabon by executing the NGULU exploration concession, which includes an oil discovery and numerous untested exploration opportunities.
- Raising sufficient capital to fully fund the 2026 operating plan.
These activities set the company up for exploration growth in the coming years.
Near-Term Catalysts
The company has significant near-term catalysts in 2026.
- Production test on Kavango Discovery. 2nd Quarter. The production test will be critical in determining the deliverability of the reservoirs and ultimately the commerciality of the field. The company plans to test up to six intervals across both the Elandshoek and the Huttenburg formations.
- Appraisal well on Kavango discovery. 3rd Quarter. Upon completion of the production test, the company plans to immediately move to an appraisal well, located approximately three to four kilometres south of the Kavango West well. This appraisal location will test the expected predrill resource estimate volumes and will be an important milestone for reserves recognition and to determine commerciality.
- Gabon Resource report. 3rd Quarter. A third-party resource report outlining the potential of the concession will be published.
- Resource report Kavango West Discovery & Damara Fold Belt. 3rd Quarter.
- Loba discovery, appraisal well location selected. 4th
- Potential Final Investment Decision (FID) on Kavango discovery. Late 2026/early 2027.
Namibia
The company holds a 70% working interest ("WI") in PEL 73 in NE Namibia (BW Energy 20% WI, NAMCOR 10% WI), encompassing two major plays: the Damara Fold Belt and Kavango Rift Basin.
The exploration licences cover an area of 6.0 million acres. The primary focus has been the expansive Damara Fold Belt, where the company has drilled two key high-potential wells, with the second well resulting in a discovery at Kavango West, announced in late 2025 (click here for Kavango West Press release)
Kavango West Discovery. The Kavango West well drilled to 4,260 metres, which is the deepest well ever drilled onshore Namibia. The results were very encouraging.
The primary objective of this well was the Otavi reservoirs. The company encountered two main intervals; the shallower objective was the Huttenberg formation, which contained:
- Over 400 metres of gross hydrocarbons (1312 feet) in limestone units, which are heavily fractured; and
- Within those 400 metres of gross hydrocarbons, the company calculated 75 metres of net hydrocarbon pay (246 feet).
The deeper objective within the Otavi unit is the Elandshoek formation, which was also very encouraging.
- The well encountered approximately 560 metres of gross hydrocarbon saturated intervals, which the company believes is heavily fractured. This is a natural gas-saturated section of over 1,800 feet where gas shows were observed throughout.
- Hydrocarbons were present at surface in the mud pits in the form of visible oil sheens, odor, and oil bubbles associated with gas shows from mud logs.
- Approximately 81 metres (265 feet) of oil shows were identified in the gross interval.
The company has an additional 19 prospects and leads mapped in the Damara Fold Belt play surrounding the Kavango West discovery well, representing a substantial untested exploration inventory.
Angola
In April 2025, the company signed a Memorandum of Understanding with ANPG of Angola for a 5-million-acre area, adding to the acreage in Namibia, as the company believes both the fold belt and rift plays extend across the border.
This strategic move ensured capturing maximum running room in the event the Kavango 1X well was a discovery. Between Recon's positions in Namibia and Angola, the company has access to approximately 11 million contiguous acres and is in a unique position to hold such a vast land position. The company expects to commence an oil seep sampling program in Angola in Q2 of this year, followed by 2D seismic later in 2026.
Gabon
In September of 2025, the company signed the NGULU Block Production Sharing Contract, or PSC, with a low cost of entry, offering flexibility regarding timing of spending. This strategic move aligns with activity onshore, as shallow water has the advantage of lower costs and shorter cycle times compared to deepwater with sizable resource potential. The asset is attractive due to its range of opportunities, including near-term appraisal, development, and high-potential exploration.
The NGULU concession spans over 1,200 square kilometers, which is equivalent to approximately 58 blocks in the Gulf of Mexico, and is largely covered with older vintage 3D seismic data. This shallow water block will provide lower drilling costs and shorter cycle time to tie-in due to existing nearby infrastructure.
The Ngulu block is located in a producing hydrocarbon basin, which lowers the geological risk of activities, while still providing plenty of running room.
The company is commencing 3D seismic reprocessing and expects to have enhanced data completed in the coming months. Once the seismic reprocessing is complete in the second half of 2026, a resource report will be published on the concession, to be followed with the selection of an appraisal well location.
Based on the opportunities captured at Ngulu and the operating environment, ReconAfrica is excited for its future in Gabon.
ESG – Industry-Leading ESG Program in Namibia - Making a Positive Impact on Human Lives
Exceptionally Strong Management Team with Proven Track Record
Reconnaissance Energy Africa Ltd. is led by world-class management and technical teams. Click here for management's track record.
Brian Reinsborough, President and CEO
Brian is a visionary executive with an exceptional record of strategic, leadership, and management successes. An industry pioneer whose passion and focused drive inspires companies and individuals to deliver excellence. He has an outstanding track record and brings 35 years of successful oil and gas exploration and production experience, including over 25 years in the deepwater Gulf of Mexico.
Having worked globally for Mobil Oil, Nexen, Warburg Pincus as an Executive-In-Residence, and Venari Resources, Brian has discovered over 2.4 billion barrels of oil equivalent over the course of his career in the deepwater Gulf of Mexico.
During his career, he has been involved with some of the largest discoveries in the history of the Gulf of Mexico (GoM), including Appomattox, Anchor, and Shenandoah. He has developed initial business plans and executed two Deepwater businesses into industry-recognized programs and has drilled 36 Deepwater wells in all play types in the GoM, resulting in a 50% success rate.
Brian also has significant experience in attracting financing and talent for exploration-based businesses, having raised over $2.4 billion of private equity financing in his previous company.
Brian completed the Program for Management Development from Harvard Business School, a Master of Arts in Geology from the University of Texas at Austin, and a Bachelor of Science in Geology from Mount Allison University, Canada.
He was awarded the Ernst & Young Entrepreneur of the Year in Energy in the US in 2014 and currently serves on the Advisory Board of the University of Texas, Jackson School of Geosciences.
Chris Sembritzky SVP, Exploration
Chris is an experienced geologist with an outstanding track record of international exploration, appraisal, and development programs with significant business development experience.
Over a 20-year career at Anadarko Petroleum, he held senior geologist roles on projects including Mozambique, Algeria, South Africa, Peru, Colombia, Ghana, Brazil, Iraq, and onshore United States. Prior to his retirement from Anadarko, Chris was the Vice President of International Exploration, Business Development, and New Ventures.
Chris has developed longstanding relationships with various government agencies, national oil companies, and joint venture partners in a multitude of international settings.
He holds a Master's degree in Geology from Baylor University and a bachelor's degree in environmental science and Geology from Baylor University. Chris has also been a company advisor on topics including carbonates, sedimentology, petrophysics, and seismic stratigraphy.
Shares Outstanding
Approximately 379.8 million shares.
Key Shareholders
Bloomberg shows that many company insiders own the stock, including the company's CEO, with over 1million shares. The most recent action shows 10 of 11 insiders increasing their positions, and 1 unchanged.
Largest Shareholder: BW Energy
Bloomberg shows BW Energy holding more than 26.3 million shares, and the most recent change was an addition of more than 4 million shares (in excess of $20 million invested in the company).
2025: A Year of Progress on Multiple Strategic Fronts
Investors can view the company's year-end operational update and milestones for 2026 here.
In The News
The company recently closed on an upsized private placement of more than CA$36 million.
An interview with the CEO on the details of the equity raise is available here.
Bullish Charts
This daily chart shows the bulls in control.
MACD histograms (20,40,10 series) are rising, and the lines are close to a significant buy signal cross.
The price is bouncing off support in the CA$0.75 area, and the small inverse H&S pattern suggests that a surge to CA$1.00 is imminent.
RSI is rising, and volume is bullish.
This weekly chart is technically enticing.
Massive volume is evident on the rally from the head of the huge inverse H&S pattern.
The key 5,15 series moving averages are "kissing." This often occurs right before there's a big trending move.
The H&S pattern target is about CA$1.80, which is also the area of the highs of recent years.
The Stochastics oscillator (14,5,5 series) is looping up in the momentum zone of 50. This adds to the overall bullishness of the chart.
Stock price at time of writing: CA$0.85
Short-Term Technical Price Target: CA$1.00
Medium-Term Technical Price Target: CA$1.35
Long-Term Technical Price Target: CA$1.80
Technical Rating: Speculative Buy
The company's latest investor presentation is here.
An important Podcast update from the President and CEO and SVP Exploration can be accessed here.
Company Website: https://www.reconafrica.com.
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Important Disclosures:
- Reconnaissance Energy Africa Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
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For this article, the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,550.
- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Reconnaissance Energy Africa Ltd.
- Author Certification and Compensation: Stewart Thomson was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Thomson is a retired Canadian financial advisor who has passed the Canadian Securities Course as well as additional technical analysis courses that were mandated by his former employer and approved by Ontario regulatory bodies. For the past 15 years, he has been editing and writing numerous financial newsletters that have a strong focus on charts. The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.
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