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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 May 27, 2021 9:51am
196 Views
Post# 33274785

RE:Stock Price Potential

RE:Stock Price Potential

No, Aramco is not a fair comparison. They have 12 million bbl per day of production, a downstream division, and a chemical division. Reserves are worth the least in the portfolio.

For example, 1 bbl of production may be valued (net present value) at let's say $5. 1 bbl of reserves would then be valued at something like $0.50. These numbers are made up to prove a point, and only the reservoir/exploitation engineers would know the real numbers, but production barrels are worth a lot more than a reserve barrel. Now throw in downstream with their crack spreads, and chemical profit margins (all taking into account capital expenditures adjusted for discount rates).


You see how Aramco's production and other divisions greatly increase their market cap. If you have a background in oil and gas or finance focussing on oil and gas, you get this, otherwise, people are making wild assumptions that simply aren't true, to arrive at completely unrealistic valuations.

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