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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 Bpultraon Aug 05, 2021 12:10pm
276 Views
Post# 33655060

RE:RE:Would love some insight

RE:RE:Would love some insight
TurnToTheRight wrote:

Firstly, this release is absolute fluff, and just my speculation, but perhaps RECO should have waited to release tangible info instead of this.

The released information is from the MUD logs, not the WIRELINE logs. Mud logs are quick and dirty and really don't provide any real qualitative or quantitative data, but simply an indication of what's down hole. It's the wireline logs that really help determine what's down there. 

What do people expect, these things take time. If you look at the release the strat wells have determined what intervals the further exploration activities will focus on. The intervals between 1300-1500m and 1600-1650m look to be where the future focus is. Let RECO run seismic and the VSP to further delineate the area and start to determine the homogeneity of the formations. The rubber will only really hit the road once they run inflow production tests to determine the production potential of various intervals - likely a few wells off. And putting these interval sizes into perspective, a 200m thick formation is very thick, particularly if it is relatively homogeneous and interconnected (i.e. matrix permiabilty) - there are prolific formations 50-100m thick in the western Canadian sedimentary basin like the wilrich or falher (just an example, not an analogous comparison).

some investors may be jumping ship right now, and no judgment because that's their perogative, and may be their plan after hitting certain return thresholds. But those selling because they didn't get hard data or possible production data are clearly too naive regarding asset development to understand just how much time and effort it takes to get to that point. We are a ways off (about a year is my guess) before we get a much better idea about the commercial viability of production. 

Investing in RECO, even at this point, is highly speculative and by no means a sure thing, but patience is key, and at the end of the day this could be a bust, but it is still too early to tell. And on the bright side, even George admitted that RECO has found a basin (regardless of production capabilities) that was overlooked by pretty much everyone.


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100% correct.... thanks for the very well thought out review... 
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