Bullboard - Stock Discussion Forum Reconnaissance Energy (Africa) Ltd V.RECO

Alternate Symbol(s): RECAF

Reconnaissance Energy Africa Ltd. is a Canada-based oil and gas company. The Company is engaged in the opening of Kavango Sedimentary Basin in the Kalahari Desert of northeastern Namibia and northwestern Botswana. It holds 90% interest in a petroleum exploration license in northeast Namibia and a 100% interest in petroleum exploration rights in northwest Botswana over the entire Kavango... see more

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Reconnaissance Energy (Africa) Ltd > Valuation Metrics

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Post by Oregonduck on Jun 04, 2022 12:39pm

Valuation Metrics

The deal value is around $30 million - give or take - for the 5.0 percent interest. That imputes a valuation of $600 million v. $1 billion mkt valuation, or $3.0 per share.

Previously, I predicted that the stock will fall to $3 level to fill the runaway up gap.

There is only a 10 percent success ratio on the next two wells according to rhe CO's own estimation, the stock is vulnerable to collapse back to pennies if they come up dry again.

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