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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 Buyhigheatchipson May 06, 2021 8:09am
284 Views
Post# 33139086

RE:RE:RE:Why would they do that at ?

RE:RE:RE:Why would they do that at ?

This makes the most sense to me. We're set now in case we have to widen our net after hole 2.

And let's remember, Haywood is not in this to lose money. This bought deal shows that they're putting their money where they're mouth is (which btw has been appropriately hedged with statements of risk imo). 


GorgeousGeorge1 wrote: They actually raised a very small amount of money compared to their market cap. It is not uncommon to raise as much as 10-15% of market cap amongst juniors with no revenue. So another way of looking at it - if they were/are not confident that whatever they found in 6 - 2 will lead to commercial success, it would make a lot more sense to raise as much as possible now, to avoid excessive dilution after you announce poor results and the sp tanks. The relatively small amount they have raised now actually tells me they don't want to dilute at current share price, because they expect the share price to be significantly higher when they need to tap the market for funds again

 

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