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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

Comment by GorgeousGeorge1on May 06, 2021 6:02am
280 Views
Post# 33138769

RE:RE:Why would they do that at ?

RE:RE:Why would they do that at ?They actually raised a very small amount of money compared to their market cap. It is not uncommon to raise as much as 10-15% of market cap amongst juniors with no revenue. So another way of looking at it - if they were/are not confident that whatever they found in 6 - 2 will lead to commercial success, it would make a lot more sense to raise as much as possible now, to avoid excessive dilution after you announce poor results and the sp tanks. The relatively small amount they have raised now actually tells me they don't want to dilute at current share price, because they expect the share price to be significantly higher when they need to tap the market for funds again
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