From a german forum today:
https://www.wallstreet-online.de/diskussion/1319043-neustebeitraege/oel-gas The german Tagesschau website has over 11 million hits per month. Yesterday, there was an article (the first time in Germany) about the Reconnaissance activities in Namibia:
https://www.tagesschau.de/wirtschaft/namibia-botswana-oelboh....
It is unfortunately not up to date with regard to the environmental aspects that have now been clarified. I hope the responsible editor will correct this.
I guess many people read this article yesterday and now want more information. A good summary is the german Goldherz Report from 14.1.2020. I read the report very carefully and then invested heavily. In my opinion the risk/reward ratio is excellent. It seems geologically (detailed 3D radar of the whole area and the first test well from 1964, which was drilled blind in the wrong place) everything is there what it takes to boil hydrocarbons. It is therefore repeatedly compared by management with the giant Eagle Ford oil field in Texas.
Goldherz Report from 14.1.2020:
https://www.goldherzreport.de/sonderausgabe-nr12020/ (Note: The whole project was slowed down by Corona. But now all Corona risks of the project have disappeared, so that drilling can still be done in December)
Update: https://www.goldherzreport.de/ausgabe-nr412020/ Therein: The stock is now traded in institutional investor circles
as the world's best oil explorer stock. It is the only stock that controls an entire oil basin that has never been systematically explored and could hold an oil discovery that generations will talk about if it is successful. A lot has happened since then. The resource seems to be even greater. A second independent spool resource report is planned before drilling begins. The first two holes are drill holes to explore the nature of the rock. It is possible that oil/gas may already be found there. Important for these two test wells is whether the shale rock is thick enough and at the required depth. Shale rock boils our oil/gas at the appropriate temperature from the vegetable carbons. If this is proven, the price will already increase significantly. Subsequently, seismic surveys will be carried out to locate the suspected basins.
Currently our rig is on its way in the Atlantic Ocean. Estimated arrival time: 11.12.2020 in Namibia. The first test drilling is planned for December.
We all presume/hope here in the Forum that as the activities progress and become known in the USA and EU, the SP will continue to rise until drilling begins. There will be daily setbacks, sometimes violent ones, as has already happened, as these stupid stoplossers like to be shaved by more potent market participants to increase their stocks. If they exceed $3 to 20 days, warrants will mature, which would make Reconnaissance more money. We think that the company has a very big interest in lifting the price above $3 before the start of the drill. We will see if this is successful.
Chances: - If the assumed geology is confirmed, the stock price will rise sharply - If oil/gas is found, the stock price will rise extremely, possibly by a factor of 10, 100 or 1000 It's a bet for the jackpot. For better chances of an exorbitant profit you have to search for a long time. Some people may shake their heads, but according to Bloomberg's chart (-> averaged valuations of potential oil fields worldwide), maybe not more:
From the Goldherz Report: The potential is there. Alone by a purposeful development of the existing oil basin, an enormous revaluation curve can be represented. With a market capitalization of 130 million US$ and 6.3 million acres, the current valuation of the oil basin is only 20 US$ per acre and thus only half of what comparably developed commercial oil fields show. With the appropriate drilling and initial production tests, this value can be increased twentyfold... In other words, before the first production well is even sputtered, an appreciation by a factor of 50 times the current market capitalization of US$ 130 million to US$ 5.5 billion would be conceivable. Of course, this will not happen overnight and requires corresponding drilling success! Nevertheless, I would like to sensitize you to the possible profit potential.
Where exorbitant chances are lying dormant, there are naturally also risks (there is no such thing as a free lunch)
Risks:
- Cargo ship goes down/has engine/hydraulic damage
- drill breaks off
- Drillrig breaks down
-> These risks would not stop the project, but in some cases would delay it considerably
- The first two test drillings do not yield the hoped-for results
-> This would naturally strain the course. It would depend on what the cause is and what is further planned.
Closing words Bill Cathey, the chief geologist of ReconAfrica, who believes in a very big success:
“Nowhere in the world is there a sedimentary basin this deep that does not produce hydrocarbons” Translated with www.DeepL.com/Translator (free version)