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Bullboard - Stock Discussion Forum 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... see more

TSXV:RECO - Post Discussion

Reconnaissance Energy (Africa) Ltd > Spoule estimate UNRISKED: $ 5 billion market cap
View:
Post by Hiddensecrets on Dec 17, 2020 9:14am

Spoule estimate UNRISKED: $ 5 billion market cap

Spoule estimates call for 1 billion barrels of oil.@ net pay of $ 5 each for total market cap of:

$ 5 Billion

Analyst applies a risk of 6% and comes up with a value of $ 334 million or $ 2.50 per share, Spoule puts the risk at 3.3% or $ 165 million.

Jarvie disagress and comes up with 100 billion barrels of oil @ net pay of $ 5 each for market cap of:


$ 500 Billion

He does not apply a risk factor, but if we assume 6% like the analyst did, it would yield a market cap of $ 3 BILLION or, 

STOCK PRICE OF:   $ 17.96 per share. 

So range is anywhere between $ 2.50 per share to $ 17.96 per share based on a 6% risk.

If we put risk like at 25% then it is a $ 125 Billion stock and a $ 75 per share stock. 

MPO
Comment by CanadaSparrow on Dec 17, 2020 9:22am
If $125 billion NAV, wouldn't that be $700/share? Not $75.
Comment by teheran10 on Dec 17, 2020 10:34am
Most of us here will become multimillionairs of over $100 million.  God Will Guide that drill, I am convinced of it. Just hold on to your shares and smile. 
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