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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 Oregonduckon Jun 01, 2022 11:28am
178 Views
Post# 34723397

The Co has cash, but…

The Co has cash, but…

As of March 31, 2022, the Co had cash of $102 million, but owed $48 million to the Mexican royalty. The debts are overdue. The cash on hand will be gone quick as the two upcoming wells will cost some $20 million plus.

The inflow of cash was due  mainly to the exercising of 43 million warrants for $40 million or an average cost of $0.93 per warrant in 2021. In the first 3 months of 2022, it received another $792,000 from 1.5 million warrants exercised at $0.51. 

An avalanche of cheap shares being dumped is depressing the share price. You can't blame short sellers as the bogeyman causing the drop with only 2 million shares (US) and 1 million shares (Canada) shorted.
 

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