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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 Hiddensecretson May 11, 2021 10:33am
262 Views
Post# 33173155

RE:SHORT POSITIONS ....

RE:SHORT POSITIONS ....I think it is more of an arbitrage than actual shorts since ROE is officially tied to RECO, being the fact that 1 ROE share will be exchanged for .046 Reco shares. 

Sometimes spread between the two stocks is sufficient to allow arbitrage trading to take place. 

Example:   Buy ROE and Sell Reco, or buy Reco and sell ROE....depends on where stocks are.

In actual equilibrium:   1 share of ROE = .046 shares of Reco

However during the day, maybe 1 share of ROE is actually trading at .06 shaes of Reco so arbitrage sells Reco or, it trades at .035 shares of Reco and in that case arbitrage buys RECO.

In any event, this minor noise, is to be disregarded.

What is important is to keep note of these numbers:


500 million barrels of oil                   =   $ 24 per share stock price per Hayward

If 12 billion barrels of oil (per Jarvie)   = then upside to   $ 576 per share stock price 

So lets say 60% is done by majors, it means our stock price should be $ 230 (40% * $ 576 per Jarvie)

And this is only for 12% of the land and, not considering the 5 billion barrels of oil in Mexico that will get unlocked once new administration is in the office in 2024. 

mpo

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