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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 AUborealison May 13, 2021 8:18pm
432 Views
Post# 33200724

Further to big numbers...

Further to big numbers...The initial Jarvie presentation used a 400' thick pay zone on 12% of the sections under the RECO lease.
At 50% kerogen conversion he guestimated 49 mmboe/section
At 75 Kerogen Conversion he guestimated 73 mmboe/section
https://reconafrica.com/wp-content/uploads/Dan-Jarvie-ReconAfrica-Geochemical-Analysis-1.pdf

"Of ReconAfrica’s 13,672 sections, calculations are based on 12% of that acreage or 1,641 sections only"

He came up with a range of 80-120 billion boe on 1641 sections (the 12%).

Well 6-2 found a zone that was 660' thick or 50% higher than the guestimate.

Which means the oil in place on that 12% could be as large as: 80 to 120 x 1.5 = 120-180 billion boe.

IF and I mean a BIG IF the same metrics hold true for the other 88% of the sections then the Oil in Place could equal something in the range of 8X that guestimate.

Or 960 - 1,440 billion boe.

If a deal was done at a 1$ per bbl that would equal about $1 Trillion dollars.

About $5000/sh.

Of course there would need to be a few more wells drilled.

This second well now drilling, 6-1, is a 10 mile 'step-out' location from the first well.

The area under lease is 190 miles long and 85 miles wide.

Using the same spacing as what is now taking place, a 10x10 mile grid, RECO could drill ~150 wells to really get a handle on the entire 'play'. 

Right now they have a pretty clear path to getting 6 wells done without any further dilution.
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