So we know the reason why Haywood have been soooo conservative in only slowly raising the price target. This has certainly been planned/discussed for some time.
Good: Haywood is constantly in contact with the management of ReconAfrica, i.e. it is for us a further weighty indication that Haywood rel. surely assumes that there is commercially recoverable oil/gas in the Kavango Basin. I have no doubt about that. Neither does Haywood.
The question remains for what?
ReconAfrica has approx. 30 Mio$ cash, completely sufficient for the complete year 2021 (Seismic and at least 5-6 wells).
possible reasons:
- To involve Haywood even more
- Purchase of at least a second rig to get started in Botswana as soon as possible.
- ???
With 25M$ the complete drilling activities + seismic in Botswana would be paid for this year.
THAT would be a real blast and would make perfect sense! Today also the public assurance of the president of Botswana that there will be 100% no fracking in Botswana. I think that was no coincidence. He surely wants to prepare the ground for ReconAfrica, that the environmentals in Botswana will be told right away that the " No Fracking" card can't be pulled..
+++Exciting times ahead....+++