Reconnaissance Energy (Africa) Ltd V.RECO

shorts are stubborn

[Matteo1234]

• ReconAfrica has more than doubled off of its claim of a working petroleum system from its first well in the Kavango Basin.
• This massive basin has incredible potential for the company, as it continues to operate. However, it will likely take several years to see if it pans out.
• We recommend investing in ReconAfrica on the basis of the asset's strength and its ability to drive long-term rewards for shareholders.

[peterj99]

Several years LOL? At some point the Namibian government partner will tap them on the shoulder and say "this is not a science project. Start producing oil. We want the oil revenue. NOW!!" That's my take

[TurnToTheRight]

It's absolutely going to take several years until meaningful production comes from the basin. My guess is that it will take at least 5 years until anything over 100,000 bbl/day is produced. The Namibian gov needs to understand this, otherwise they simply have unrealistic expectations based on inexperience with O&G development.  Exploration drilling needs to wrap up (likely at least

[peterj99]

    Maybe you are right but then xame along RECO: “the first of a three well drilling program, provides clear evidence of a working conventional petroleum system in the Kavango Basin.“ https://en.wikipedia.org/wiki/Petroleum_industry_in_Nigeria#History_of_oil_exploration In the pursuit of commercially available petroleum, Shell-BP found oil in Oloibiri, Nigeria, in 1956.

[TurnToTheRight]

Appraisal wells, 1-2 years off have commercial production, but the number of wells drilled in that phase of development is rather low, so not a lot of production. It's the development phase where production ramps up. This doesn't co trading the excerpt you quoted, I believe there will be some minimal commercial production. But I would be interested to know what volume of production was

[peterj99]

What many of us share holders want is one producing well for starters That should have a huge effect on the share price. It will also be a great card to deal with during the negotiations. My guess is every major is watching closely and will fight like cats and dogs to get a bite. And even the scraps will be fought over mpo

[teheran10]

Turn..... you are really pushing the shareholders to sell our shares based on your outdated knowledge??? Dude how old are you? Instead of supporting the company and the shareholders, you always come up with negativity.  $150-$250 

[TurnToTheRight]

32 years old, so not outdated knowledge. It's not negativity, it's simply informing those who post outlandishly unrealistic nonsense, sowing disinformation. None of it is negative, it's just an informed opinion, I could be wrong, but at least I'm leveraging industry knowledge of asset development (which I have been involved with in oil sands; Montney, Fahler, wilrich unconventional

[allnrg]

Your 32 years old and a veteran of the oil patch ? If you went to school & got a degree you probably been in the patch less then 10 years. 

[TurnToTheRight]

I've never said I was a veteran, but what 12 years has gotten me is more knowledge about oil and gas development than most people. There are plenty of people on this board with much less knowledge, and there are some here with more. You can absolutely tell which posters have technical experience and which don't. So I find it difficult to be questioned by people with no technical experience

[allnrg]

29 years now in the drilling industry, last 12 sitting wells for two of the majors in Canada. So seen a little bit I guess. Nothing wrong with keeping grounded in expectations. Yes it will take awhile before there is any huge amounts of oil produced I agree, but that's not the point behind this initial campaign. First establish an active petroleum system over the massive land package. Then

[TurnToTheRight]

I think there is an absolute ton of oil there, and I don't think I have indicated otherwise. I think the share price can sky rocket, but I don't know if the fundamentals will ever justify a 30-40 billion plus market cap. And I genuinely don't want the misinformation from some to be promulgated.  Overall, I'm in for the long haul, but I will sell once the SP far exceeds what

[allnrg]

Ok understand, you just at times sound bearish. I myself couldn't invest being bearish. Yes some of the projections here a bit over the top but see potential fo massive upside here. My idea of massive & others would obviously differ. I've followed this management team in past ventures , so wouldn't doubt there capabilities of attracting a JV partner. The whole concept of that is of

[Jambo1]

Don't remember which presentation I saw from Recon but they said by September they would have results from three wells. After that they would start JV discussions and very good chance production by second or third quarter of 2022.

[TurnToTheRight]

But you are pretty close with the math having completed a bachelors of science in mechanical engineering and then working for a major straight out of school.

[peterj99]

Sounds like they found oil in 1956 and produced oil in 1957 Nigeria is in Africa   Shell-BP found oil in Oloibiri, Nigeria, in 1956. Other important oil wells discovered during the period were Afam and Bomu in Ogoni territory. Production of crude oil began in 1957, and in 1960 a total of 847,000 tonnes of crude oil was exported.  

[TurnToTheRight]

847,000 tonne = 6.21 million bbl, over 4 years (1956-1960) = 1460 days equates to an aggregate daily average over that time period of 4253 bbl/day. if you assume all of that production occurred over just the last year, that equates to 17,014 bbl/day. So thank you for proving my point exactly, it's gonna take more than a few years to get anything over 100,000 bbl/day net to RECO.

[peterj99]

You missed the  point: "they found oil in 1956 and produced oil in 1957" And that was in the fifties

[TurnToTheRight]

Nope, didn't miss it. But there is a huge difference between producing oil (a few bbl/day) and producing enough oil to justify a 1,2,10 billion dollar market cap. Your own example highlighted that 4 years after discovering oil, production was a measly 17,000 bbl/day. What kind of market cap is justified by 17,000 bbl/day? Developing a field takes time, regardless of what decade it is.

[derpa]

17,000 barrels production per day would justify today's market cap just on it's own. The point though is that it doesn't stop there. That could be the case in a couple of years just from one basin that Reco would develop on it's own. Then you have another 4 basins that they could farm-in. And the potential for just the first. basin would of course be much higher than 17k per day

[Cali61]

I have been reading the posts here on stockhouse but haven't posted till now. It seems everyone is in agreement about finding recoverable oil but debating the future market cap and the timing of it. Turntotheright: I totally agree with your point that ramping up production to some serious quantities will take sime. The thing is the market is always forward looking, often by years, to where the

[Matteo1234]

Time will increase market value. Most moistures have pre-ejaculation syndrome and can't seem to hold it.

[Flintstone60]

Yes, I agree you.TurnTotheright, at 32, apparently knows his way around the oil business, but not the stock market. I am in my 60s and have been successful in the stock market for over 40 years and know, for example, it is absolutely not a matter of production quantities and the start of production, as this is only the second step. The first step is the proof of conventionally recoverable oil/gas

[CoreyB]

His knowledgeable input is a fk of a lot more accurate than some trust fund moron screaming $150-$250 in every single on of his moronic posts. 

[allnrg]

You do realize that this same team had a JV partner In Luk Oil in Mexico. Wouldn't doubt them on being able to attract a Major as a junior . 

[GorgeousGeorge1]

No need for people to flip out at the points Turntotheright is making. Markets are forward looking, productions estimates and a clear plan for infrastructure capex will be enough to get the share price moving. But honestly, my money is betting on the Chinese to acquire the entire project, they'll likely want the whole thing with no other operators. They want secure supply to meet their