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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

Comment by rockgolemon Jan 31, 2021 11:45am
280 Views
Post# 32431406

RE:Heard about this on #wallstreetbets

RE:Heard about this on #wallstreetbetsHi Ronnie,

The reasons why it is still undervalued are:

1. Bigotry towards any investment related to oil. I've tried to help people I know by telling them about this when it was much cheaper, and it is difficult to get anyone to even put a half hour of reading into it. 

2. Most people, and especially most instutitions refuse to even consider investing in pre-revenue micro caps. The company is already of a size that it is hard to move the valuation without these big investors. This will change as it is derisked and climbs over $5 usd.

3. To understand why it is undervalued one has to understand that they are (a) proving a basing not a target, (b) Namibia is a good jurisdiction, (c) the already-completed aerial surveying can accurately identify the size of the basin. This requires actual effort. Especially (c), which requires opening a geology textbook. People are lazy. 

If you read the old posts on the forums, nearly everyone involved to start had a background in the oil industry. Later, some people from the region got involved. Now I'd say the plurality of posters are traders. This is a normal evolution towards a broad investment base. 


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