Haywood $2.50 Price TargetINVESTMENT BRIEF: We are initiating coverage of ReconAfrica (RECO-V) with a Buy rating and $2.50/share target price. Our target price is NAV based and includes our net risked upside estimate of the resource potential across the Kavango Basin. ReconAfrica is set and funded to de-risk a potentially material resource play onshore Namibia and Botswana with 1,348 mmbbls/58.1 Tcf best estimate prospective recoverable resource (gross). We recommend accumulating a position ahead of drilling/evaluation news flow in H1/21 aimed at proving up the presence of a working hydrocarbon system, which if confirmed, should provide abundant opportunities for further exploration and appraisal drilling. On a successful discovery, attractive fiscal terms should help to facilitate development of the basin, thereby increasing the chance commercialization and shareholder value.