Reconnaissance Energy (Africa) Ltd V.RECO

It Stinks to High Heaven

[Oregonduck]

The Namcor deal stinks, I predict Reco will announce on Monday 6 June that it has been annulled by their Govt. I make the following points, seriatim:

(a) Any oil resource there essentially belongs to the Namibian people. Many countries, other than the US, place ownership of subsoil resources with the nation and its people.At the international level, the UN Resolution establishes this same principle through the doctrine of permanent sovereignty over natural resources.
(b) The Namibia Govt says they were completely in the dark when the deal to sell off 5 percent was agreed to by their National Oil Comoany (NOC) Namcir's officials. 
(c) The deal for $2 million cash and 5 million common shares smells like influence peddling for permitting approvals. Who is getting the cash??
(d) It would be unlawful under the Foreign Corrupt Practices Act. The SEC and DOJ could investigate this quid-pro-quo deal.
 

NOC's don't sell off their valuable resources unless maybe there is no oil, or the oil is difficult to extract. 

The Namibia Govt has been caught up by the Fish-rot bribery case for hundreds of millions paid over many years.
 

The Namcor deal is

[C1v1k6]

if you predict wrong like you have so many times before... can you leave and never come back?

[pacer001]

Mr. Duck I have to admit you have some good points. I too was surprised that the Namibians were giving up a big portion of their already small participation - their 10% . On a deal like this I had expected the gov to hold around at least 30-40 %. What I have learned from investing in South Africa over many years is that the wealth must be spread. Back like in 2012 South Africa almost lost it over