Funds might be used for BOTSWANA drillingGiven that RECO is acquiring ROE for $ 155 million it would make sense that they also plan to start drilling the BOTSWANA land earlier than anticipated given the success in hole #1.
They have 5 basins so the more you prove up, the more $$$$ that you can ask in any deal with major oil companies.
Bought deal was announced at almost the market price, if we were to remove yesterdays gain, which means that RECO was in no rush and, the minimal dilution means that RECO is very confident. What is points to is that Hayward wanted to be part of this project. They are doing their part in properly covering RECO, in return RECO has awarded them for their honest coverage.
For those who watched the movie A BEAUTIFUL MIND, it shows that todays world uses the equilibrium formula which means that any deal done has to make sure that both parties come out winning. RECO is getting institutional exposure and, Haywood is getting in on this project for its clients.
mpo