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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 TurnToTheRighton Apr 16, 2021 8:59am
376 Views
Post# 33009772

RE:RE:RE:RE:RE:So at what point does.....

RE:RE:RE:RE:RE:So at what point does.....I see what you're getting at, ROE can act as second disclosure vehicle to drum up more PR should they exercise the option. Do you think that exercising the option, and transferring 50% of the Botswana working interest from RECO to ROE would have a negative impact on the SP of RECO, seeinga s 50% of the value just disappeared?

As to your second point... that's a loaded question for sure. I would guess that no one in the world except RECO employees (geos, reservoir, and driling engineers) would know the pressures of the formations. There could be some naturally occurring sub-normal pressure formations and over-pressured formations, but I have no idea. Also, faults can play a huge role in producing abnormal pressure formations, thrusting what would be normally pressured formations into shallower formations, creating overpressured zones at shallower depths. Normal pressure gradient is 9.81 kPa/m (fresh water gradient), down to 3200m = 31 400 kPa, but the under and over pressured formations completely throw that out the window. And frankly, I would definately want to see hydrocarbon bearing zones to be more overpressured to allow for better primary production without the need for pumps or Enhanced Oil Recovery (EOR) implementation.
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