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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 21, 2021 2:50pm
305 Views
Post# 33038454

RE:RE:How did these JV rumors start?

RE:RE:How did these JV rumors start? I could be wrong, but I have a hard time believing that the majors have approached RECO after only the first well. Usually, the majors are very content to have someone else de-risk the basin somewhat, and then come in with their cash. This of course is not the case when they [a major] makes the discovery, but from what I've seen, it seems a little early after only one well.

The other thing, and I'm not bashing but trying to be realistic, is that as much as the majors want this oil, they not only have worldwide portfolios with assets to develop for the next few decades, they aren't going to overpay (they still need to make their corporately mandated rate of return taking into account the current risk of the asset). The other thing is, RECO needs the majors as much as the majors need the oil. RECO doesn't have the resources, both cash and technical manpower (a lot of engineers and geologists) to develop an entire basin in a realistic amount of time. 

All this to say, I think the JV is just rumour (some guy on here posted a stockwits post from someone "with a connection") so I'll remain a hopeful skeptic that RECO is in talks with the big boys. I'm guessing we'll hear news of potential JV's after the 3rd well... but I honestly hope I am wrong.
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