Reconnaissance Energy (Africa) Ltd V.RECO

Realistic? Unrealistic? Do numbers lie?

[C6J6Dub6U]

If Haywood estimates a $24 share price with a find of 50mil. What if we get like 12B+ or more like some anticipate. 12B 50M = 240. (Haywood$24@50m)24 240(12B50M) = $5760. Now what if its 120B.... add a zero. This is many years later. And maybe not as cushing of numbers due to farming out. But just try doing the math. It makes me laugh every time I do it.

[caliche]

ya there is some enviro bashing taking place.. its just shorts or majors that want a piece..  this is literally the biggest lopsided risk reward i have seen in 30 years you can bet its going to get interesting fast  wouldnt surprise me if a major or majors were accumulating warrants to exercise and get a block of reco early on.. diamond hands black diamonds that is!

[CoreyB]

Take into account what they are claiming these numbers as, is it in-place or recoverable or?  Generally recoverable oil in conventional plays is maybe 5% of what is in place.  Still 5% of 12B is nothing to sneeze at, dwarfs the 50M, just temper the enthusiasm of assuming this is a moon shot, could go to sh!t just as fast.  Not bashing at all, just keeping feet on the ground.

[ubiquitousman]

Actually in a "tight shale" play or "unconventional" recoveries of 5% of OOIP would be expected. I think this is what they are expecting, an unconventional resource play. A conventional type target depending on the perm and porosity could have a recovery factor of 15 to 25% of OOIP. Obviously it would be great to find a conventional reservoir or two. Conventional type field

[Fredo51545]

Corey, 10% recovery in a conventional play is equally plausible just on primary. Secondary efforts could double that 

[Fredo51545]

Please stop. You have no idea about oil reservoirs. There are some later posts that are sensible descriptions of potential upside. Please read them.