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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

Post by Hotshot85on Jun 30, 2021 12:10pm
268 Views
Post# 33473444

JOA

JOA All of the latest garbage Viceroy is spewing about the JOA is clearly moronic.

The current Agreement that RECO is Drilling  EXPLORATORY wells under is the Exploration Licence. This would Govern all operations related to the exploration of the basin. 
this licence is issued to RECO at 100%. RECO is responsible for all of the work and the Costs related to the exploration the terms of their commitment (3 strat wells, costs 100% reco) all would have been layed out in this doc.

A JOA is specifically put in place to Govern the relationship between parties on what will be JOINT Operations. Joint Operating Agreement. This lays out all of the terms around the relationship between NAMCOR and RECO when it comes to the drilling, completing and Equiping and production of wells, who's responsible for costs, who pays the royalties. Viceroy is correct, it is a required document. It is required before the drilling of potentially productive wells (yet another reason why, even if reco hit gushing oil on the 6-2, they would have had to cap the well. you cant produce without a production licence, or a JOA governing what happens with that production.) 

This JOA needs to be in place to cover everything from Overhead rates, costs, penalties, participatiion interest, inital drilling costs, legal ramifications, outlaying of terms not covered in the production licence.  So many things

they may have had a guy on staff that took a geology course in University, but they do not have anyone there that understands the legal documents required to jointly drill and produce an Oil or gas well.  the more i read these papers the more they sound like a guy took an intro to oil and gas course and then tried to write a short report. 
 




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