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Reconnaissance Energy (Africa) Ltd V.RECO

Alternate Symbol(s):  RECAF | V.RECO.WT | RCNWF

Reconnaissance Energy Africa Ltd. is a Canada-based oil and gas company. The Company is engaged in the exploration of the Damara Fold Belt and Kavango Rift Basin in the Kalahari Desert of northeastern Namibia and northwestern Botswana. The Company holds interest in a petroleum exploration license no. 0073 (PEL 73) in northeast Namibia and an interest in petroleum exploration rights in northwest Botswana over the Kavango Sedimentary Basin. The Company's exploration license covers an area of approximately 25,341.33 square kilometers (km2) (6.3 million acres) of oil and/or gas exploration properties comprising Blocks 1719, 1720, 1721, 1819, 1820 and 1821 situated in the Kavango Basin of northeast Namibia (the Namibia Licensed Property) and approximately 7,592 km2 (1.88 million acres) in Botswana (the Botswana Licensed Property). The two licenses together comprise over 32,933 km2 (8 million acres).


TSXV:RECO - Post by User

Post by delion Dec 19, 2020 2:30pm
489 Views
Post# 32147434

Putting things in perspective!

Putting things in perspective!Most posters here are treating the upcoming drilling program as a done deal with billions of barrels of oil being found. That eventually may be true but wildcat wells like ours typically have a probability of 1/13 of being commercially successful.  That's less than an 8% success rate.  I am not a basher but trying to be realistic.

Predictions of hundreds or thousands of dollars per share are wildly optimistic.  I don't think that we will see $100 per share as some suggest, especially if we partner with a major after the three wells are drilled.  If the drilling proves up an oil find then it will be considerably cheaper for the major partner to buy us out at a cheaper price than spending hundreds of millions on E & P.  I would love to be proved wrong but I have been investing in junior energy companies for over 40 years and it's hard to ignore past history. 
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