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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

Post by Sandpointon Feb 06, 2021 10:22pm
814 Views
Post# 32494688

Stock Price Estimate

Stock Price EstimateThe lower estimate of oil reserve is about 8B barrel. Exxon has a proven reserve of about 25B barrel and a market cap of $200B or about $8 per barrel. At this rate the RECAF resevers should lead to a market cap of about $64B. The current market cap of recaf is about $300M with a stock price of a out $3.5. At a market cap of $64B the stock would be $746 or about 200 times the current price. The upper limit of price base on reserves of about 120B barrrel is about 15 times higher. In short if they find what the geologists say is there, the price will be somewhere between 200-3000 the current price. But if they drill dry holes, it will be zero.
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