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 Sedimentary Basin. The Company's exploration license covers an area of approximately 25,341.33 square kilometers (6.3 million acres) and 8,990 km2 (2.2 million acres) in Botswana. The two licenses together comprise 34,325 sq km (8.5 million acres). Its conventional drilling program is focused on analyzing the rocks to determine if there is a working petroleum system in the Kavango Basin.

TSXV:RECO - Post by User

Reconnaissance Energy (Africa) Ltd > Target price on success: $ 24/share to $ 5,760/share

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Comment by teheran10on Jan 17, 2021 8:08pm

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Post# 32316586

RE:Target price on success: $ 24/share to $ 5,760/share

Hiddensecrets wrote: This post assumes we are successful anywhere from moderate level to a smash hit.

Per Haywood:

Modest Success

500 million barrels of oil equates to a stock price of:    $ 24 per share (3.6 billion)
(Oil value: 500 million * $ 50 per barrel = $ 25 billion)


Ulitimate Success

120 billion barrels of oil equates to a stock price of:   5,760 per share ($86 billion)
(Oil value: 120 billion * $ 50 per barrel = $ 6 trillion)

Present valuation: $ 600 million (including warrants / options)

Potential: Min: $ 3.6 billion Max: $ 86 billion

I guess this begs the question, who in their right mind is willing to sell or short this stock given this potential?

MPO

YOU FORGOT TO MULTIPLY BY 5 up to 10 earning FACTOR.