High potential of continued success.While RECO is a high-risk/high-reward oil exploration play, exploration patterns from the past suggest that success in the first wells typically means a high potential of continued success. The former Vice-President and Head of Global Oil and Gas Research at CIBC World Markets, G. DeWolf Shaw CFA, notes that “during the modern era of the great oil discoveries, a geological success on the first well or a geological failure, was rarely reversed. First wells with successes like 6-2 mean progressively less risk for next 4 wells because of an exponential increase in new data.”
Valeura Energy Corp’s shares skyrocketed for 1,000% gains after reporting a discovery in Turkey