Oil Explorer Advances Major Discovery Testing in Namibia Basin

1. 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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1. Disclosure for the quote from the Stewart Thomson article published on February 9, 2026

1. For the quoted article (published on February 9, 2026), the Company has paid Street Smart, an affiliate of Streetwise Reports US$3,500.
2. 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.

2. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Reconnaissance Energy Africa Ltd. (RECO:TSXV; RECAF:OTCQX; 0XD:FSE), known as ReconAfrica, announced operational updates and results for the year 2025, according to an April 14 release. The company has also renewed its shelf prospectus, with all related filings now accessible on SEDAR+.

"2025 was another transformational year for ReconAfrica as we progressed all aspects of our strategic goals," President and Chief Executive Officer Brian Reinsborough said. "We completed our farm down transaction with BW Energy Ltd., which was a significant milestone for the company. We made the strategic move to broaden our portfolio by entering the shallow waters of Gabon by signing the Ngulu PSC, which adds another discovery to our inventory and high potential exploration acreage. We entered Angola by signing the MOU to ensure we captured significant running room in the Damara Fold Belt in advance of drilling the Kavango discovery."

He continued, "And finally, we made a significant play opening discovery at the Kavango West 1X well. I congratulate the ReconAfrica team, and our partners, for making this an exceptional year of advancement for the company."

In Namibia, operations at the Kavango West 1X discovery well are progressing as planned, with production testing of six optimized zones slated to begin in early to mid-May, the company said. The installation of a five-inch production liner in the well bore will facilitate the sequential isolation and testing of zones. The well will undergo perforating and testing across six hydrocarbon-bearing zones within the Elandshoek and Huttenburg formations, covering approximately 420 meters of hydrocarbon-saturated sections.

The production tests, aimed at determining hydrocarbon phase and deliverability, will proceed from the deepest to the shallowest zone, with each zone's testing potentially lasting up to 10 days. The entire testing phase is expected to conclude by approximately the end of June, ReconAfrica said.

Additionally, preparations are underway for a follow-up appraisal well located roughly 3-4 kilometers southeast of the KW1X discovery, which, if successful, will facilitate the booking of reserves and the determination of a final investment decision (FID), the company said.

In Gabon, ReconAfrica has received all raw seismic tapes necessary to begin the 3D reprocessing project over the Loba oil discovery and an additional 400 square kilometers covering key areas of interest, the release noted. The final delivery of the seismic re-interpretation, expected in the fourth quarter of 2026, will incorporate advanced Pre-Stack Depth migration with Full Waveform Inversion technology, enhancing the imaging of salt-related exploration plays on the concession. This seismic data will support the preparation of a resource report and the selection of an appraisal well location on the Loba oil field.

2025 Achievements

In 2025 and the subsequent period, ReconAfrica said it achieved several significant operational milestones that have strategically expanded its exploration and production footprint across Africa. The company successfully closed the BW Energy farm-in agreement on PEL 073, which adjusted the working interests to ReconAfrica holding a 70% stake and operating status, BW Energy at 20%, and NAMCOR with a 10% carried participating interest.

ReconAfrica also made significant strides in expanding its geographical presence, the company said. It entered the onshore Angola market by signing a Memorandum of Understanding (MOU) with the ANPG for a joint exploration project in the Etosha-Okavango basin located in southeastern Angola. Additionally, ReconAfrica ventured into offshore Gabon by executing a Production Sharing Contract for the Ngulu Block, where it acquired a 55% working interest and operator status, thereby adding a high-potential offshore exploration asset to its portfolio.

A notable operational achievement was the drilling of the Kavango West 1X (KW1X) discovery well, according to ReconAfrica. Extensive wireline logging indicated approximately 75 meters of hydrocarbon pay within the Huttenburg formation and significant signs of hydrocarbon saturation within the highly fractured Elandshoek formation. Production testing operations for the KW1X Well commenced in the first quarter of 2026. Furthermore, the company began reprocessing 3D seismic data on the Ngulu Block offshore Gabon to enhance its exploration capabilities.

On the corporate front, ReconAfrica said it strengthened its team by appointing Mark Friesen as Vice President of Investor Relations and Capital Markets, and adding Kent Newsham, Jim Basick, and Paul Griffith to the exploration team.

The company also received a one-year extension to the PEL 073 Second Renewal Exploration Period, extending it to January 29, 2027.

At the 2025 Annual General Meeting of shareholders, a shareholder rights plan was adopted to protect shareholder interests.

Additionally, ReconAfrica said it filed its final short form base shelf prospectus on April 13, 2026, with the securities commissions in all provinces and territories in Canada. This filing is in line with the "access equals delivery" provisions of applicable securities legislation.

The company also reported receiving proceeds of CA$3 million from warrant exercises in the year-to-date 2026. These warrants, listed as RECO.WT with an exercise price of CA$1.75, are set to expire on July 31, 2026.

Expert: 'I Feel Very Good About This Well'

ReconAfrica has been under the spotlight in the oil sector with a recent trading price of CA$1.11, up from an entry price of CA$0.58, earning a strong Buy opinion, according to an April 15 review of the stock for PlayStocks by Ron Struthers.

The journey for RECO has been tumultuous since its peak in 2021, Struthers noted. Over the past few years, the company drilled three wells in the Kavango Rift Basin and one in the Damara Fold Belt (Naingopo), which confirmed the presence of a working petroleum system but did not result in any discoveries. However, in 2025, the drilling of the Kavango West 1X discovery well marked a significant turn, and the company is now moving towards production testing.

Despite the stock rebounding from its low last year, trading volumes have remained low since January, with little market speculation about the success of this well, he wrote.

"I believe because the previous four wells were duds, the market has no confidence in this fifth well despite the positive results," Struthers wrote. "This is a brand-new oil play with no past discoveries or production, so it can naturally take some time and extensive exploration work to make that first discovery. I feel very good about this well and believe we will see strong results."

ReconAfrica recently announced that optimized zone production testing at the Kavango West 1X well is scheduled to begin in early to mid-May, Struthers noted. The setup involves a 5-inch production liner that allows for the sequential isolation and testing of zones. The company plans to perforate and test six hydrocarbon-bearing zones within the Elandshoek and Huttenburg formations, covering approximately 420 meters of hydrocarbon-saturated sections. Each zone's testing could last up to 10 days, with the entire testing phase expected to conclude by approximately the end of June.

The recent offshore successes in Namibia, such as BP’s discovery in the Orange Basin and Shell’s findings in the Lesedi-1X well, have bolstered confidence in the region's oil potential. These discoveries have transformed the once-overlooked basin into a significant offshore frontier, with BP's Volans 1X well showing promising signs of commercial viability.

ReconAfrica is also preparing for a follow-up appraisal well located about 3-4 kilometers southeast of the KW1X discovery, the expert said. Success in this appraisal well could lead to the booking of reserves and a final investment decision. The company holds access to approximately 11 million acres across Namibia and Angola, targeting both the Damara Fold Belt and Kavango Rift Basin.

A breakout of RECO's stock is anticipated, and it is expected to trigger a strong upward movement, providing another potential buy signal for investors, he wrote.

Forthcoming Production Test Results Crucial

Research Capital Corporation Bill Newman has maintained its Speculative Buy rating and a target price of CA$4.40 for ReconAfrica following the commencement of production testing at the Kavango West 1X (KW1X) discovery well in Namibia on March 30. This target price suggests a substantial potential return of approximately 349% from the trading price at the time of writing, which was CA$0.98. The valuation reflects the risk-adjusted potential of both the KW1X prospect in Namibia and the Loba Oil Field in Gabon.

ReconAfrica has initiated production testing operations at the KW1X site, having secured all necessary permits and contracted major service providers like Halliburton and Schlumberger to support the testing program. The company aims to test six distinct zones across 420 meters of prospective intervals in both the Huttenberg and deeper Elandshoek formations. Recent petrophysical analysis has revised the estimated net hydrocarbon pay in the Huttenberg formation to 75 meters, an increase from the previously estimated 64 meters. The testing, expected to last up to 60 days, will assess hydrocarbon phase, reservoir deliverability, and pressure characteristics to determine the well's commercial viability.

The significance of the KW1X well is highlighted by its potential to be a transformative asset for the company, the note said. A successful outcome could enhance the resource potential across the 18 prospects and four leads already identified in Namibia, as well as the broader 6.3 million-acre PEL 73 license and the 5.2 million-acre Angola MOU area.

In addition to its operations in Namibia, ReconAfrica's strategic interests include the offshore Ngulu Block in Gabon, where it holds a 55% operated working interest. The company is reprocessing 3D seismic data over this block, including the Loba oil discovery, and plans to select an appraisal location for the Loba field. A third-party resource report covering more than 28 seismically identified prospects is anticipated by the end of 2026, adding a longer-term exploration upside to ReconAfrica's portfolio.

The analyst maintained a Speculative Buy rating, emphasizing that while the drilling results have been promising, the forthcoming production testing results from KW1X are crucial for confirming the commercial viability of the well. These results, along with the expected resource report from Gabon, are seen as key near-term catalysts for the company.

Company Has Important Catalysts Lined Up, Analyst Says

¹ReconAfrica, a company actively engaged in oil and gas exploration across southern Africa, is expanding its operations significantly in Namibia, Angola, and Gabon, according to a review by Technical Stewart Thomson for Streetwise Reports on March 3.

In Namibia, ReconAfrica is progressing with its exploration in the Damara Fold Belt under license PEL 73, covering an extensive 6 million acres. The company recently achieved a hydrocarbon discovery with its second well, the Kavango West 1X, in this region.

Expanding its reach, ReconAfrica has also ventured into Angola by signing a Memorandum of Understanding that grants them exploration rights over an additional 5 million acres. This strategic move aims to leverage the geological continuity across the Namibian border. Furthermore, in Gabon, ReconAfrica has acquired the NGULU offshore block, which offers both appraisal and exploration opportunities in a region known for hydrocarbon production. This acquisition is part of the company's strategy to diversify its portfolio and strengthen its presence in key African oil regions.

Looking forward to 2026, ReconAfrica has several important catalysts lined up, Thomson noted. These include conducting production tests on the Kavango discovery, drilling an appraisal well nearby, and advancing seismic and appraisal activities in Gabon's NGULU block. The company holds a 70% working interest in its Namibian operations, collaborating with partners such as BW Energy and NAMCOR.

ReconAfrica's exploration efforts are underpinned by a strong environmental and social governance program, especially in Namibia, where it aims to positively impact local communities. The company's leadership team, led by Reinsborough, is noted for its extensive experience and successful track record in global oil and gas exploration.

From an investment perspective, significant insider confidence is noted, with the CEO holding over 1 million shares. Recent data shows that 10 out of 11 company insiders have increased their holdings, with BW Energy being the largest shareholder, recently increasing their stake by more than 4 million shares, valued at over CA$20 million.

Thomson set medium and long-term targets for the stock at CA$1.35 and CA$1.80, respectively. The technical rating is a Speculative Buy, reflecting a positive outlook for the stock's future trajectory.

The Catalyst: War Moves

On Friday, the oil markets and U.S. stock indexes experienced significant movements following a statement from the Iranian foreign minister, according to Steve Kopack reported for NBC News on April 17. The minister announced that the Strait of Hormuz, a crucial global oil transit chokepoint, was fully open for commercial vessels for the remainder of the ceasefire period in Lebanon. Detailed in a post by Seyed Abbas Araghchi on the social media platform X, the announcement specified that the passage would be on a coordinated route as previously outlined by Iran's Ports and Maritime Organization.

In response to this development, oil prices saw a sharp decline. U.S. crude oil dropped by 10% to nearly $85 per barrel, while international Brent crude decreased by more than 8% to around US$90 per barrel. Additionally, heating oil futures, often used as a proxy for jet fuel, plummeted by 13%, and wholesale RBOB gasoline futures fell by 7%. The announcement raised questions about whether commercial vessels would be required to pay a toll to Iran, a practice that had been reported in recent weeks. There was also uncertainty about whether ships in the region, which had faced threats and attacks, would trust the announcement.

The shift in oil prices was expected to lead to lower gasoline prices, with GasBuddy analyst Patrick De Haan predicting that national average prices could drop to between US$3.65 and US$3.85 per gallon by the upcoming weekend. At the time of the report, the average price per gallon was US$4.09, according to AAA, and had been declining slightly each day that week.

The ongoing conflict in Iran has created a significant divide in the global oil markets, with a stark contrast between the soaring prices of physical crude and the relatively stable futures benchmarks, according to a commentary by Ron Bousso for Reuters on April 16.

This disparity is leaving consumers, businesses, and policymakers without a clear guide, potentially causing enduring damage to the global economy, he said. The disruption began when Iran effectively shut down the Strait of Hormuz following U.S.-Israeli military actions on February 28, which has led to a substantial reduction in global oil supplies, particularly affecting Asia and increasingly Europe. This blockade has forced Gulf producers to cut production by approximately 9 million barrels per day.

In response to these disruptions, global benchmark Brent crude futures experienced a record surge of 64% in March, reaching a high of US$118 a barrel. Prices later retreated to around US$95 following a ceasefire agreement between the U.S. and Iran on April 7. However, the collapse of subsequent negotiations to end the conflict led U.S. President Donald Trump to enforce a blockade on vessels entering and exiting Iranian ports, causing prices to rise again to about $100.

Despite these dramatic events, the market's reaction seems relatively subdued considering the scale of the supply losses, which now exceed 600 million barrels. The impact is more pronounced in the prices paid by refineries for the oil needed to produce gasoline, diesel, and jet fuel, Bousso wrote.

Ownership and Share Structure²

About 1% of the company is owned by insiders and management, including Reinsborough with 0.29%. About 7% is held by BW. The rest is in institutional and retail.

Other top shareholders include Senior Vice President of Drilling and Completions Nicholas Steinsberger with 0.17%, Director Joseph Davis with 0.06%, Senior Vice President of Exploration Christopher Sembritzky with 0.06%, and Director W. Derek Aylesworth with 0.05%.

ReconAfrica's market cap is CA$450.5 million with 381.78 million shares outstanding. It trades in a 52-week range of CA$0.40 and CA$1.35.