Stockwatch Posthmmmm - a $24.00 stock? We'll see I guess.
From stockwatch: Further afield, Craig Steinke and David Elliott's Reconnaissance Energy Africa Ltd. (RECO) added 41 cents to $4.49 on 4.57 million shares, after touting a planned seismic survey at its Kavango basin assets in Namibia. The company has hired Polaris Natural Resources (a Canadian firm) to collect 450 square kilometres worth of 2-D seismic data. For context, Reconnaissance's overall acreage in the Kavango basin covers 8.5 million acres, or closer to 35,000 square kilometres. This initial chunk of 450 square kilometres was picked to tie into the three-well drill program that is currently in progress. Reconnaissance started the first well last week and hopes to reach total depth by the end of next month.
Based on the stock's blissful rise to around $4.50 from just 30 cents over the last nine months, investors have no shortage of high hopes for this program. Even so, news of a seismic survey would not ordinarily be expected to cause a 10-per-cent jump in the share price. Some of today's excitement likely stemmed from a strikingly boosterish research note by Haywood analyst Christopher Jones. Mr. Jones opined this morning that Reconnaissance has "all the ingredients to establish and exploit the potential of the Kavango basin." The seismic program, in his view, underscores the company's position as "leaders of understanding the basin ... [giving it] plenty of opportunities to enter strategic joint venturers (farm-outs)." He sees joint venture discussions occurring as early as the second half of 2021. Notably, while Mr. Jones hiked his official price target to $7 from $4, he emphasized that even a "modest" discovery would be a boon for Reconnaissance. In such a case, he sees the stock heading as high as $24. The stock closed today at $4.49.