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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 Luckboxxon Feb 07, 2022 10:34am
282 Views
Post# 34404573

RE:RE:RE:RE:New deal with Namibia is good news

RE:RE:RE:RE:New deal with Namibia is good newsThe value of the newly acquired 5% will go up with drill bit success, JV deals, and the 3rd party resource report.  I assume RECO has high confidence this will happen.  They can farm out the 5% for a profit later this year.  Also, I highly doubt NAMCOR would be able to fund the 10% carry costs on the intitial basin development which is how oil JVs operate.  NAMCOR has probably realized this since Namibia is currently poor.  NAMCOR likely expecting its RECO stake to increase in the near future so they can sell later this year to fund its 5% of initial costs.  I am speculating on the timing of course which may happen later.  Eventually with enough wells, the basin production will become self-sustaining with some downstream assets in place (transportation, storage, etc.).  This deal will look a lot better to all later this year with more holes and JV deals.  The big thing right now is that this completely takes the legs out of the climate NGOs and their media strategy.
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