Reconnaissance Energy (Africa) Ltd V.RECO

great post on reddit

[grenouille]

full of more technical info than i can understand  ...interesting comments section below the post.

https://www.reddit.com/r/ReconAfrica/comments/orjhgs/meanwhile_back_at_the_ranch/?utm_source=share&utm_medium=web2x&context=3

[jimgeorge]

Yes, good post and comments. That "full suite" of logs will give data to determine the rock type, porosity, whether or not there is a potential reservoir rock, what the fluids in those reservoir rocks are...but only a drill stem test or a completion and flow test can say whether any hydrocarbons are producible. lets hope any PR's from Reco contain real facts and not some stories

[peterj99]

jimgeorge There is an easier way. Drill a convetiona oil well LOL you posted " That "full suite" of logs will give data to determine the rock type, porosity, whether or not there is a potential reservoir rock, what the fluids in those reservoir rocks are...but only a drill stem test or a completion and flow test can say whether any hydrocarbons are producible."

[g0mar7]

Jim, Being a high level exec from previous public oil companies I would be interested to hear your thoughts on the recent ROE/RECO and the impact that has on the insider sales development. My understanding is this would be considered income for the two directors and would have immediate tax implications thus the sale of shares to market. Or am I confused and its simply insiders selling before

[jimgeorge]

I didn't see the details on the form of consideration paid to ROE shareholders. If it was a share exchange there are no tax implications for the ROE shareholders, they can elect to do a rollover and their cost base on their ROE shares becomes the cost base for their new Recon shares. If the ROE shareholders received cash for their shares (or for a portion of their shares) that would create tax

[TeslaPlus1]

What you've said is true in the context of shares.  No argument there.   Various sections / elections would provide for a roll-over in cost base of shares.   No tax disposition. in that scenario.    But in the case of crystallized options,  there are NO  roll-over provisions, based on my discussions with my tax advisor.  If you disagree and

[jimgeorge]

The PR says all ROE options are rolled over into equivalent Recon options. It's true that a corporate takeover or merger usually causes all options to vest, but typically the option holder has one year (or more) to exercise vested options. So there is no hurry to exercise and no immediate need to sell shares.

[jimgeorge]

I should have said the option rollover is not a rollover under the income tax act, that doesn't apply. The rollover of the options simply allows the option holder to maintain their options as per their original Option Agreement with ROE.

[TeslaPlus1]

I dont believe that's true. Give me an ITA (Canada) section reference for your supposed option  roll-over. Doesnt exist.   Otherwise Grayson's  feedback stands and is CORECT.  Prove you are credible.  I'll even pay my tax advisor to look at your section reference to "confirm" / dispel your thinking.  Free Offer. On my dime.   

[TeslaPlus1]

I asked you for an Income Tax Act reference.  You rely on the PR  for tax advice ?   Tired of your FUD.     Sections 85, 85.1 and 86, among others,  of the Income Tax Act (Canada)  allow for a tax free rollover of  SHARES. NO SUCH SECTION  EXISTS RE.  OPTIONS, as far as I know.    Prove me wrong with FACTS - a section reference.

[TeslaPlus1]

That's not my experience.   Have you examined the term sheet for the options ?   Doubt it. So again speaking about stuff without all the facts.  Who do I trust ? - you ? or Grayson ?  Hahha.   I think that's pretty clear.   So stop with your FUD.  Or prove your point with a section of the ITA Canada.  Pretty simple.   

[jimgeorge]

Who sh*t in your cornflakes today? Of course section 85 doesn't pertain to options because taxes are only owed on disposition of shares or when options are EXERCISED. Get it yet? The corporate transaction did not create any immediate need to sell shares. That's all I said. I have no idea what other tax issues the Teconguys may or may not have, or what other reasons they might have to sell.

[Moneycat]

I think what Tesla is trying to say nicely is stop coming on here thinking you know everything!! You actually finally said something that pertains to a lot of your BS.  "I have no Idea"   P.s  what  kind of rich ex ceo spends time on bullboards trying to be Robin Hood ??

[jimgeorge]

Me! And btw, I was asked a question so I answered it. 

[peterj99]

OK jimgeorge. You like answering questions. So here is a question. Do you still think RECO is a scam?

[TeslaPlus1]

what question did you answer  ? I'm still waiting for  you to answer mine. Give me a section reference ITA Canada  backing up your assertion.  Full stop.   If you do, I'll have it checked out and we can have a real fact based discussion.   Until we  get a reply to  THAT QUESTION,  do us all a favor and post somewhere else.  Or go

[TeslaPlus1]

what question did you answer@ ? I@m still waiting for@ you to answer mine. Give me a section reference ITA Canada@ backing up your assertion.@ Full stop.@ @If you do, I@ll have it checked out and we can have a real fact based discussion.@ @Until we@ get a reply to@ THAT QUESTION,@ do us all a favor and post somewhere else.@ Or go hang out with@ your friends Fraser, Gabe at Viceroy.@@

[jimgeorge]

I answered a question from g0mar7 - look it up.

[g0mar7]

Bunch of children on here. Thanks for answering and providing your opinion whether right or wrong. Appreciate it. For the lot of you that can't take the opposite or opposining side of the trade and worship the stock with devotion grow up. I'm long RECO but some of you are nuts.

[TeslaPlus1]

If you ask anyone on SH, they would say YOU sh*t in OUR collective cereal.    And  you have no idea what you are talking about.   Sec 85 is a tax free rollover provision which allows  for  a property / share disposition at cost to a corporation the taxpayer owns. No cash tax payable if elected amount for transfer equals cost.     Sec 86 involves