Post by
Trekewl on Oct 04, 2024 2:31pm
RECO's Discovery potential after exploration update
ReconAfrica’s discovery potential highlighted by analysts following Namibia exploration update
Published: 13:25 03 Oct 2024 EDT
A successful outcome from Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF)’s drilling efforts at the Naingopo exploration well could be a significant catalyst for the stock, analysts reiterated after the company provided an update on its exploration activities in Namibia.
ReconAfrica said on Thursday that the Naingopo exploration well on Petroleum Exploration License 73 (PEL 73) is making progress, though it has faced delays due to slower drilling rates in the deeper section of the Mulden formation and challenges with casing installation.
Drilling is expected to continue through October 2024, with results to be shared after a thorough analysis of the logs and any fluids encountered.
ReconAfrica is also preparing to begin drilling its second Damara Fold Belt exploration well, Kambundu (Prospect P), in late November or early December.
In addition, the company has received environmental clearance for a 3D seismic survey, planned for the first quarter of 2025, to explore the Kavango Rift Basin.
“While drilling at Naingopo is behind schedule, initial results are anticipated soon, and a successful outcome could act as a significant catalyst for the stock,” Research Capital analysts wrote in a note to clients.
“This well presents a high-risk, high-reward opportunity, targeting multiple reservoirs that could enhance the chances of discovering commercial hydrocarbons.
“This investment is best suited for those with a higher risk tolerance who are seeking substantial potential returns. However, ReconAfrica has built a robust prospect inventory, and the upcoming drilling program offers multiple opportunities for significant discoveries.”
The analysts maintained their ‘Speculative Buy’ recommendation on the stock and $2.30 price target, which represents a projected return of 125.5% from the stock’s price of $1.02 at the time of writing.
In a separate note, Haywood Capital Markets analysts highlighted: “ReconAfrica equates to a high risk/high reward opportunity with visible catalysts.”
They repeated their ‘Buy’ rating and awarded the stock a $2.10 price target representing a projected return of 106%.
Comment by
Frank007 on Oct 06, 2024 1:58pm
O m g ...what a pump and dump ...Hayward are the underwriters trying to unload their position ,on you Baffoons ...be careful ,..be very carefull....